In the blink of an eye, the "Golden Three" has come to an end. At this special critical juncture, silicone companies are on high alert. On one hand, midstream and downstream enterprises will start month end stocking actions, and on the other hand, pre-sale orders from individual factories have been delivered, and new transactions are indeed sluggish. Last week, some companies offered discounts on DMC transactions, deepening bearish sentiment in the industry.
At present, individual factories continue to reduce production and plan to raise prices again in early April. Looking back at March, prices have been hovering in a situation of almost falling, but after individual factories repeatedly strengthened their production reduction efforts, the burden reduction expanded to 40%, and the monthly production reduction reached 180000 tons. With this determination, the rebound of organic silicon in the spring has been extended. As of March 30th, the mainstream quotation for DMC is 14400-14800 yuan/ton. The average price for DMC in March was 14244.17 yuan/ton, an increase of 5.57% compared to the previous month and a decrease of 12.91% compared to the same period last year. This week, we officially entered the second quarter. Although 15000 yuan/ton is just around the corner and there are plans to break through in the upstream, the transmission of upward momentum in the middle and downstream is hindered, mainly due to the need to replenish inventory. As prices continue to rise, the risk of stocking up is also increasing, especially in some cases where spot trading is the main focus. Under inventory pressure, it is inevitable to trade price for quantity. Therefore, looking at it optimistically, if April continues to rise as scheduled, it will mostly help the previous round of price increases land. If it still cannot alleviate the supply-demand contradiction, it will undoubtedly be a double test for the upstream production reduction and price increase. Do you think the new round of price increases in early April can be implemented? Next, the editor will discuss and exchange ideas with everyone