SMM

According to SMM statistics, domestic silicone DMC production in October slightly decreased by 0.55% MoM, up 7.07% YoY. The main reason for the production decrease in October is the comprehensive maintenance of top-tier enterprises, although there is also new capacity being released domestically. The combined effect of these factors led to a slight decrease in production.

Specifically, in terms of production, the decrease in October is mainly due to the comprehensive maintenance of major plants in Shandong, with four units undergoing rotational maintenance. Additionally, units in Hebei and Zhejiang also underwent maintenance, with an overall maintenance period of about two weeks, significantly reducing supply. Furthermore, another major enterprise in Shandong started ramping up production with new units in October, leading to a combined effect of increased and decreased production, resulting in an overall reduction.

On the demand side, recent domestic demand for high-temperature and room-temperature adhesives has weakened, while demand for silicone oil remains balanced. Overseas, with the end of pre-holiday procurement, recent demand has also declined, leading to an overall downward trend in demand.

Therefore, for the production schedule forecast for November, SMM believes that production will shift from a decrease to an increase. Domestic monomer enterprises are expected to maintain high operating rates in November, with concentrated resumption of production from mid-to-late October and continuous release of new capacity. Supply is expected to increase significantly, with domestic silicone production forecast to rise to around 220,000 mt in November.