Last week, the DMC market experienced a price drop, which touched the hearts of many industry insiders. At the same time, the prices of products such as 107 rubber, raw rubber, silicone oil, and mixed rubber are relatively stable, but some companies choose to offer discounts to cope with market changes. Downstream and terminal enterprises are mostly adopting a wait-and-see attitude, with severe bearish sentiment, and overall market demand is relatively sluggish.
On the cost side, the price of silicon metal remains stable, while the price of methanol continues to decline, leaving the DMC market lacking strong support. To stimulate downstream enterprises to stock up, individual factories offer discounts to core customers, and the mainstream DMC quotation remains at 14400-14800 yuan/ton. However, the future market trend is still full of uncertainty. Whether to continue reducing production to boost prices or to trade prices for volume depends on the results of the post holiday industry conference.
At the same time, the silicon metal market is also facing a situation of supply and demand reduction. The production reduction plan of major northern factories has been implemented, and futures contract prices have slightly rebounded, but overall market transactions have been sluggish. The production of the supply side in March increased slightly compared to February, but in April, large factories in the north reduced production and some new production capacity was put into output, resulting in an overall decrease greater than the increase. On the demand side, the operating load of organic silicon monomer plants continues to decline, while the operating load of polycrystalline silicon plants is relatively stable. Aluminum alloy plants purchase metal silicon on demand, and overall demand is expected to decrease slightly.
In this context, the overall inventory of the silicon metal market remains high, putting significant pressure on the spot market. The market sentiment is pessimistic, and it is expected that prices will continue to fluctuate within the bottom range. For metal silicon enterprises, it is urgent to address issues such as how to respond to market changes, adjust production strategies, and optimize inventory management.