Industry Adjusts Production Cut Ratio to 60% Today to Reverse Continuous DMC Price Slump
2026,07,10
Keywords: silicone DMC market, 60% coordinated production cut, July 10 2026 silicone price, raw material stabilization, silicone downstream inventory
Key Sentence: Domestic silicone manufacturers unanimously agreed to raise the production reduction ratio to 60% starting July 10, aiming to stop the weekly drop of DMC monomer prices amid summer off-season weak demand.
Released on July 10, 2026, the latest emergency consensus from major organic silicone producers brings upgraded supply-side regulation measures. After the previous 40% capacity control failed to prop up quotations, mainstream factories formally raised the coordinated production cut ratio to 60% from today, limiting the overall industry operating rate to around 60% to ease oversupply pressure. Over the past week, DMC prices fell 800 RMB/ton, with mainstream spot prices sliding to 13,900–14,300 RMB/ton. Downstream manufacturers of silicone sealants, mold rubber and consumer silicone goods maintain ultra-low inventory strategies and only place small rigid-demand orders, lacking large-scale stocking momentum. Metal silicon and methyl chloride raw material costs also weakened, removing cost support for silicone monomers. Industry participants expect the intensified production curbs to ease inventory accumulation in August, while export businesses still face headwinds from Red Sea logistics delays and overseas weak consumption. For silicone deep-processing factories, stable raw material quotations will help restore gross profit margins of finished silicone products, especially high-value electronic potting silicone and automotive LSR that rely on long-term bulk orders.
Shenzhen Hong Ye Jie Technology Co., Ltd
