At the end of February, the organic silicon market ushered in the traditional peak season. This week, the quotes from leading manufacturers have risen to 14000 yuan/ton, driving up the prices of DMC, 107 glue, raw rubber, silicone oil and other products. Although individual factories in Shandong have slightly different quotes, overall market sentiment has been boosted and downstream stocking enthusiasm has increased.

From the demand side, macro positive factors are gradually fermenting, and silicone adhesive companies have issued price increase letters, further boosting market sentiment. Some companies have increased their stocking efforts despite the improvement in their order taking situation, but more companies are still constrained by weak demand and have a more cautious stocking attitude. Overall, the market is mixed with positive and negative factors, downstream stocking sentiment is differentiated, and consumer performance is average.
However, the production reduction plan of individual factories and the support of pre-sale orders have kept DMC prices firm in the short term. As of February 28th, the mainstream quotation for DMC is 13500-14300 yuan/ton, with a weekly increase of 3.7%. The quotation for chemical grade 421 # metal silicon on the raw material side is 10950-12450 yuan/ton, with a partial price reduction of 100-200 yuan; The quotation for chloromethane in Shandong region is 2100 yuan/ton, with a weekly drop of 300 yuan.
In terms of operating rate, due to the strong mentality of individual factories to reduce production and maintain price, most individual factories maintain a negative load reduction state. It is expected that some individual factories in East China, North China and other regions will undergo maintenance in March, and other enterprises will also enter into regular maintenance rotation. The overall operating rate will remain below 70%. The market may maintain a stable to strong trend in the short term.