As of the end of May 2026, the overall organic silicon market is showing a "high-level negotiation, supply-demand stalemate" operating pattern.
On the supply side, the market demonstrates strong resilience against declines. Most monomer factories have pre-sale orders that can be sustained until early June, and enterprises' inventories are generally at a low level. Although new orders this week have been relatively lackluster, supported by the remaining orders, the price of the mainstream product, dimethyl cyclosiloxane mixed ring body (DMC), remains stable, with the mainstream quoted range remaining at 14,800 - 15,200 yuan/ton. However, the structural contradictions within the market are gradually accumulating. Currently, there is a significant price gap inversion between raw rubber, 107 glue, and DMC. Some leading enterprises, in an effort to seize market share, adopt the strategy of "price for quantity", lowering the transaction prices of raw rubber and 107 glue to the lower levels, which has brought significant shipment pressure to other monomer factories.
On the demand side, the purchasing behavior of midstream and downstream enterprises shows a polarized trend, and the market's bearish expectations are strong. Some enterprises with low inventories and abundant funds are seizing the opportunity to make appropriate replenishments of the low-priced supplies from leading factories; but more enterprises, fearing that the current price has not yet reached the bottom, choose to continue to wait and observe. Whether the "price for quantity" strategy of leading factories can effectively drive an increase in transaction volume is a key variable in the current market sentiment shift. If the concession orders fail to be released as scheduled, it will further strengthen the market's downward pressure expectations, triggering broader waiting and bargaining.
In addition, new variables have emerged in the raw material end. Affected by the geopolitical situation in the Middle East, the price of sulfur has soared by 80% within the year, reaching a record high, directly pushing up the production cost of sulfuric acid, and providing strong cost support for downstream products such as precipitated silica. Overall, in the short term, the organic silicon market is likely to continue its weak oscillation and high-level negotiation operating pattern.