Hello everyone, welcome to this industry news update. Data from the Global Silicone Network on December 23 shows that China's silicone market is in a sideways consolidation phase, with mainstream DMC quotes ranging from 13,500 to 14,000 yuan/ton. Prices of spot 107 rubber, raw rubber and other products have edged up, and the industry's social inventory is at a low level within the year. On the supply side, most enterprises maintain a price-firming strategy relying on pre-sold orders. The raw rubber market is in a tight supply-demand balance, and inventory is expected to continue declining in December. On the demand side, the performance is lackluster. Downstream procurement is mainly based on rigid demand, with limited new orders. Weak recovery in end-consumption restricts the room for price increases. Notably, the second round of emission reduction coordination meetings has released policy signals. If substantive emission reduction measures are implemented, it will affect the industry through three aspects: tightening supply, activating cost transmission, and boosting market sentiment, and the silicone market is expected to launch a third round of growth. However, constrained by weak end-demand, the price increase may show a "gradual and slow" trend. The consumer side presents structural highlights. Silicone products related to digital culture such as game and animation co-branded products and personalized customized items, as well as innovative products like outdoor portable utensils and silicone food warmers, have seen booming sales. The relevant sales revenue increased by 23.5% year-on-year, becoming a new driver of industry growth. Currently, the supply-demand game in the market is intensifying, and the future trend depends on the sales rhythm of major monomer factories and the implementation of policies. The industry expects that if the industrial chain successfully passes the traditional off-season, with the recovery of end-demand, the silicone market is expected to gradually bottom out and recover.

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