February 3rd News — Recently, the provincial key project invested and constructed by Fujian Shengyuan New Materials Co., Ltd., the Zhangping Shengyuan Silicone Rubber and Silicone Oil Production Project, has successfully completed the factory building's final acceptance. Upon completion, the project will deploy 4 silicone rubber production lines and 3 silicone oil production lines, with an annual production capacity of 6,000 tons of silicone rubber and 5,000 tons of silicone oil. Chempricehub Analysis: **Silicone DMC** Bull-Bear Score: 1.5 The new silicone rubber and silicone oil production capacity from this project will increase the demand for silicone DMC as a raw material, which is favorable for spot prices. With an annual capacity of 6,000 tons of silicone rubber and 5,000 tons of silicone oil, it is expected to drive an increase in silicone DMC procurement, supporting an upward price trend. **Silicone Rubber** Bull-Bear Score: -1.5 The project adds 4 new production lines with an annual capacity of 6,000 tons, significantly increasing market supply, which may lead to an imbalance between supply and demand, negatively impacting spot prices. Increased supply pressure, combined with current market inventory levels, poses a downside risk to prices. **Silicone Oil** Bull-Bear Score: -1.5 The addition of 3 new production lines with an annual capacity of 5,000 tons expands supply and intensifies market competition, negatively impacting spot prices. After the release of this capacity, spot quotations may be suppressed, especially if downstream and midstream demand does not grow correspondingly, putting significant pressure on prices.