In Q1, prices for dimethyl cyclosiloxane (DMC) are fluctuating and reflecting a 7% increase compared to the previous quarter. global supply was constrained by maintenance shutdowns in China, reducing production by approximately 3 million metric tons.
In Q2 2024, geopolitical tensions in the APAC region contributed to disruptions in key feedstock supplies to produce dimethyl cyclosiloxane (DMC). However, these supply issues led to a decrease in prices as reduced demand for DMC and increased availability of alternative feedstocks helped stabilize the market. The overall impact resulted in a decline in costs, easing some of the previous price pressures reflecting 12% decrease in price pressures.
In Q3 2024, the dimethyl cyclosiloxane (DMC) market continues to face upward price pressure due to ongoing supply constraints and robust demand from the electronics and automotive sectors. Demand in the electronics sector has increased by 4% year-on-year, driven by the growth in consumer electronics and electric vehicle production. However, the construction sector has experienced a 2% decline in demand, influenced by economic uncertainties, which has slightly reduced the overall demand for DMC in this segment.
Looking ahead to Q4 2024 and beyond, China is expected to increase its dimethyl cyclosiloxane (DMC) production capacity by 1.5 million metric tons annually, which may help stabilize prices. Despite this, the market in China is projected to remain volatile through 2030, influenced by factors such as geopolitical developments, changes in supply chain dynamics, and shifting demand from industries such as electronics, automotive, and healthcare. These variables will continue to impact production rates and pricing trends for DMC in the coming years.