Silicone Oil – Dimethyl Silicone Oil: Weekly Market Update with Stable Prices and Improving Transactions

1. Market Review

During the week, the market for dimethyl silicone oil, covering both domestic and international brands, remained generally stable with only slight fluctuations observed. Suppliers maintained relatively consistent pricing strategies, while minor adjustments reflected localized supply-demand dynamics. Compared with the previous period, overall trading activity improved, with a noticeable increase in transaction volumes and inquiry frequency. Market participants showed a more active engagement, indicating a gradual recovery in buying interest.

2. Pricing Methodology

The weekly average price for domestic dimethyl silicone oil is calculated based on the average of daily quoted prices collected from a representative sample of producers. This approach reflects real-time market sentiment and supplier positioning. For international brands, the weekly average is derived from bulk trading prices of leading suppliers, based on assessed values toward the latter part of the trading week. This methodology ensures consistency with prevailing market practices and provides a reliable benchmark for comparison.

3. Market Drivers

The primary market trend during the week was price stabilization. Some suppliers temporarily suspended quotations, which contributed to slight upward pressure on overall average prices. Meanwhile, increasing raw material costs continued to exert pressure on domestic manufacturers, tightening production margins. Despite this, most producers maintained stable operating rates and prioritized shipment fulfillment over aggressive price adjustments.

On the demand side, a “buy on rising prices” sentiment encouraged downstream customers to accelerate restocking activities. This led to improved transaction sentiment and stronger deal flow across the market. In the international segment, supply conditions remained relatively tight due to maintenance activities at certain production facilities and lower inventory levels among distributors. These factors provided support to market prices. However, downstream buyers demonstrated moderate acceptance of higher prices, resulting in procurement strategies that focused mainly on immediate operational needs, keeping transaction ranges largely stable.

4. Market Outlook

Looking ahead, raw material prices are expected to continue trending upward, which will further increase cost pressures for domestic silicone oil producers. Supported by improving order intake and strengthening demand, market confidence is gradually building. As a result, domestic prices are likely to show an upward trend in the near term.

For international brands, supply is expected to remain relatively tight, offering continued support to the market. However, due to the cumulative impact of earlier price increases, downstream acceptance may weaken slightly. As a result, prices in the international segment are expected to remain stable in the short term, with limited room for further significant increases.