Recently, the State Administration for Market Regulation deployed a special campaign against unfair competition in key industries, and the organic silicon industry actively responded to policy guidance. Several leading organic silicon enterprises have announced the launch of high-quality "good products" and other forms to promote demand release. According to industry data, the domestic silicone market has continued to strengthen since the Spring Festival. As of February 28th, the mainstream quotation for DMC (important silicone monomer) has exceeded the 14000 yuan/ton mark, with a cumulative increase of over 1000 yuan/ton compared to before the holiday, setting a new high in nearly three months. The market is showing a trend of "both quantity and price rising".

The effectiveness of supply side reform is evident: major domestic individual enterprises have responded to market changes by actively adjusting their production strategies. The current industry operating rate has dropped to the range of 65% -70%, and leading enterprises such as Hesheng Silicon Industry and Xin'an Co., Ltd. have maintained load reduction operations. According to industry chain research, the planned maintenance capacity in East and North China in March is expected to reach 350000 tons per year. Combined with regular maintenance arrangements by enterprises, it is expected that the industry's operating rate in the second quarter will remain below 70% for a long time. Analysis of Market Driving Forces: 1 Inventory cycle reversal: The current inventory turnover days of enterprises have dropped to around 12 days, a decrease of 40% compared to the same period last year. Due to overseas equipment maintenance and shipping factors, the arrival volume of imported goods at the port has decreased by about 25% compared to expectations, resulting in a short-term supply gap. 2. Marginal improvement on the demand side: The demand for high-end fields such as new energy (photovoltaic modules, electric vehicles) and electronic appliances increased by 18% year-on-year, driving the operating rate of downstream organic silicon product enterprises to over 75%. 3. Industry ecological optimization: The strategic focus of top enterprises has shifted to downstream special high value-added products, with a gross profit increase of over 30% per ton of products, driving industrial upgrading. Market participants believe that the current price has exceeded the industry's cash cost line, forming strong support. Considering the traditional peak season in the second quarter and the expansion of maintenance scale, DMC prices are expected to hit the key resistance level of 14500 yuan/ton. We need to be alert to the rising resistance of downstream demand side enterprises to high prices, as well as the uncertainty of overseas demand. According to customs data, the import volume of primary forms of organosilicon in January and February decreased by 13.6% year-on-year, while the export volume increased by 9.3% year-on-year, and the internal and external demand structure continued to optimize.