Recently, there has been a significant price fluctuation in the DMC market. Some individual factories in Shandong have raised their DMC quotations by 400 yuan/ton to 13900 yuan/ton, while also restoring the policy of free shipping. This measure breaks the market pattern of high in the south and low in the north, making DMC prices basically consistent with mainstream quotes from other individual factories, maintaining around 14000 yuan. Behind this price adjustment, it reflects the changes in market supply and demand, as well as the determination of upstream enterprises to raise prices.

From the supply side, the operating rate of industrial silicon remains low in the south and high in the north. The resumption of production capacity of large factories in the northwest is expected to gradually release after next week, which will further exacerbate market inventory pressure. On the demand side, the production of polycrystalline silicon has basically maintained the previous level, while the operating rate of organic silicon has gradually declined, resulting in a slight decrease in overall demand. The imbalance between supply and demand has continuously increased the production pressure of industrial silicon, and the pressure on spot and futures prices is significant.
For midstream and downstream enterprises, despite the increase in DMC prices, they remain calm about this price adjustment due to the incomplete consumption of previous inventory and average demand. Especially in the southern region of China, this price adjustment is actually a visible increase and a hidden decrease, and it is inevitable that midstream and downstream enterprises will question the determination of upstream enterprises to raise prices. Therefore, the current market still continues the strategy of watching more and moving less, with a strong wait-and-see sentiment.