Demand Dullness Compels Dimethylcyclosiloxane Prices to Follow a Downtrend Globally
- 25-May-2023 6:17 PM
- Journalist: Francis Stokes
Dimethylcyclosiloxane (DMC) continues to show a declining trend in April 2023 in the global market. This price trend was primarily driven by the low demand from downstream industries like personal care & cosmetics, health care, silicon rubber, and plastic & packaging and weak economic conditions.
The prices of DMC witnessed a significant fall of around 4% in India this month due to declined global freight charges, a declining price in major exporting country China, and low demand from the domestic market amidst stockpiled inventories which have induced a condition of product’s abundance in the country. Demand from the construction industry was also moderate to low in the meantime.
On the other hand, China’s economic condition was not so healthy; as per National Bureau of Statistics (NBS) data, a marginal fall in the Consumer Price Index (CPI) from 100.7 in March 2023 to 100.1 in April 2023 was observed owing to low consumption from the domestic market, which can also be seen in the product’s prices. DMC prices in China declined by around 3% during April 2023, affecting the prices in major importing nations. Furthermore, the current looming threat of another covid wave in the country is also one of the key factors for the low demand outlook in the market.
In like manner, the prices of DMC continue to fall in the German market too during April 2023 by a margin of 1% due to weak economic conditions and the prolonged war situation in the region. The demand for the product remained low in the domestic and regional markets. Furthermore, the smooth flow of cargo and narrow supply-demand gap also contributed to the current price trend. Further, cheaper imports of DMC amidst easing freight costs have also contributed to this pricing dynamics.
The USA market has also experienced a decline in the price of DMC by 1%, backed by weak economic conditions in the country. Low demand for the product, induced after the collapse of two major banks amidst already dull demand for the DMC in the global market.
It is anticipated that the prices of DMC in India will remain low in the following month as well, as the inventories are still ample. In like manner, DMC prices are also expected to remain low in the Chinese market due to the ample availability of products and low demand from the international market. However, prices may rise in the German and the US market in the coming month due to the expected improvement in demand fundamentals from the automotive sector.