DMC prices increased modestly in October 2025 across India, China, and the U.S., supported by firm methanol costs and resilience in downstream demand. India, up 0.2%, saw consumption driven by festivals but limited restocking; China, up 0.9%, was supported by a tariff reprieve and strong demand for cosmetics and NEVs; the U.S., up 0.3%, reflected stable construction and higher auto sales. Forward prices are expected to decrease amidst ample supply and easing seasonal demand.
Prices for Dimethylcyclosiloxane (DMC) in India, China, and the United States demonstrated modest but divergent movements in October 2025, reflecting the interplay between feedstock costs, supply chain conditions, and dynamics of sectoral demand.
In India, DMC prices rose 0.2% on the month, driven largely by firm upstream costs. Methanol price gains on new import tariffs, and silicon metal remained a little high, squeezing producer margins. Downstream demand, however, did not reflect that well in restocking despite these cost pressures. On the downstream side, automotive sales jumped 40.5% year-on-year, supported by festive sentiment and GST reforms; personal care consumption spiked during Diwali. However, manufacturers had stocked up on DMC in advance and hence limited fresh procurement. On the supply side, India's manufacturing sector was resilient; better output and near-record inventories ensured adequate availability. Volatility in freight rates did add some fluctuations in cost, but efficient logistics and shorter delivery times stabilized the market, anchoring DMC prices to only a marginal gain.
In China, DMC prices rose 0.9% as firm methanol costs and robust downstream demand drove it higher. Silicon metal prices declined slightly to give partial easing, while the most striking factor was the suspension of U.S. tariffs on Chinese goods for a year. Such a policy adjustment enhanced export sentiment, providing confidence for organosilicon producers who suffered from foreign trade. Downstream demand was driven by the strong trend in cosmetics, with 12 new organosilicon raw material finishing the filing work, and the surging New Energy Vehicle sector with 1.61 million units of wholesale sales, up 16% YoY. DMC supply was sufficient, with northern regions raising output while southwestern producers reduced it due to high electricity costs. Overcapacity weighed on profit, but festive-driven consumption and infrastructure investment offset the weakness in property construction, leading to modest firm price growth for DMC.
In the United States, DMC prices increased by 0.3%, reflecting a mixed cost environment. Methanol contract prices increased, providing upward pressure, while silicon metal prices remained soft. Manufacturing improved in the month, with better output and new orders, though long-term confidence was dampened by uncertainty over trade policy. Supply chains continued to face disruptions from tariffs, transportation delays, and low stock availability that stretched lead times and necessitated very cautious inventory management. Downstream demand for DMC was supported by 1.35% month-over-month growth in automotive sales, which helped boost consumption in coatings, adhesives, and silicone components. Demand in the construction market was steady despite labor issues; export demand for DMC was weak due to high inventories in China and declining auto sales in the UK. Mexico was a baseline of stability, with steady consumption downstream.
As per ChemAnalyst, DMC prices are likely to soften over the coming months due to softer seasonal demand after the festive period, expected methanol costs easing, and perpetual supply overhangs weighing on market sentiment. Although there might be some respite from the resilience across the automotive and personal care segments, the general trend indeed looks downwards, with inventories still ample amidst continuous pressure on margins due to global trade uncertainties.
