I. Key Market Drivers This Week

Raw material prices continued to fluctuate at elevated levels this week, with monomer producers consistently transferring cost pressures further downstream. Notably, adjustments to overseas tax rebate policies have unexpectedly created a favorable dynamic: rising international raw material costs are further enhancing the cost-performance advantage of domestic finished products. Over the long term, export channels for downstream products are expected to continue broadening.

II.  Trend of Raw Material Futures Market

As of April 7 closing:

Chart Description (Fig. 1 – Feedstock Futures Weekly Trend):

*The chart above illustrates the price trajectories of Silicon Metal (2605) and Methanol (2605) contracts over the past four weeks. Silicon Metal has remained on a weakening trajectory, declining from RMB 8,550/ton to RMB 8,260/ton as of the latest close. In contrast, methanol has held firm within the RMB 3,450–3,520/ton range, demonstrating continued high-level support.*

III. Supply & Demand Snapshot (￥/ton)

Industry-wide carbon reduction efforts continue to intensify, with spot market supply remaining generally tight.

IV. International Market Developments

Ongoing tensions persist in the Middle East, continuing to weigh on regional demand. Vessel schedules via the Red Sea route show no significant improvement. Market participants are advised to plan shipment schedules in advance.

Rising international crude oil prices continue to drive ocean freight rates upward, with certain routes recording increases exceeding 30%. Exporters should closely monitor fluctuations in total landed costs.

Meanwhile, leading multinational companies including Dow, Wacker Chemie, Evonik, and AkzoNobel have successively announced price increases, further reinforcing the cost competitiveness of domestic silicone products.

V. Market Outlook 

Looking ahead, the adjustment of export tax rebate policies is accelerating the transformation and upgrading of China's domestic silicone industry. Against the backdrop of rising overseas costs, exports of downstream products such as silicone rubber and sealants are well-positioned to achieve growth in both volume and profitability.

On the demand side, the construction sealant market is showing signs of recovery, while the electronic-grade adhesive sector continues to register steady growth. The export prospects for deep-processed products warrant continued attention.

Article source: Sionestop