Market Intelligence on Low Hydrogen-Containing Silicone OilI. Price Trends1. **Domestic Market**: Recently, the market price of low hydrogen-containing silicone oil in China has shown slight fluctuations. The mainstream transaction price ranges between 18,000 and 22,000 RMB per ton, with some high-end products priced slightly higher due to quality differences.2. **International Market**: Influenced by fluctuations in international crude oil prices and changes in overseas demand, the price of imported low hydrogen-containing silicone oil has slightly decreased. The CIF price at major Chinese ports is approximately USD 2,500–2,800 per ton, down about 3% from the previous month.II. Supply and Demand1. **Supply Side**: - Domestic production rates remain stable. Some manufacturers have temporarily suspended operations due to environmental inspections, but the overall supply has not been significantly affected. - Import volumes have slightly increased, mainly from Europe and Southeast Asia, supplementing part of the domestic market demand.2. **Demand Side**: - Demand from downstream industries such as silicone rubber and silicone resins remains stable, but seasonal factors have caused a slight slowdown in demand in some regions. - Export performance is strong, with increased export volumes particularly to Southeast Asia and South Asia.III. Cost Factors1. **Raw Materials**: Prices for key raw materials, including siloxanes and chloromethane, remain stable, providing strong support for the production cost of low hydrogen-containing silicone oil.2. **Energy**: Fluctuations in electricity and natural gas prices are minimal, resulting in limited impact on production costs.IV. Policy and Environmental Regulations1. Domestic environmental policies continue to tighten, placing rectification pressure on some small-scale producers. This is expected to further increase market concentration.2. Adjustments to export tax rebate policies have had a certain impact on export costs for some companies, but the overall impact is manageable.V. Market Sentiment and Expectations1. Traders and downstream enterprises generally hold a cautiously optimistic attitude, believing that short-term price fluctuations will be limited.2. Some companies expect demand to recover in the fourth quarter, leading to increased willingness to stock up in advance.Analysis and Judgment1. **Short Term**: The market price of low hydrogen-containing silicone oil is expected to continue fluctuating within a narrow range, with basic supply-demand balance and strong cost support.2. **Medium Term**: As downstream industry demand gradually recovers, especially with continued growth in the export market, prices are expected to rise slightly.3. **Long Term**: Stricter environmental policies will drive industry consolidation and increased market concentration, potentially leading to greater price volatility.Forecast1. **Price**: Over the next month, the domestic market price of low hydrogen-containing silicone oil is expected to fluctuate between 18,500 and 21,500 RMB per ton.2. **Supply and Demand**: The supply side is expected to remain stable, while demand is anticipated to gradually recover, with the export market continuing to contribute incremental growth.3. **Risks**: Attention should be paid to the impact of international crude oil price fluctuations, changes in environmental policies, and shifts in downstream industry demand on the market.
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