Recently, the domestic DMC market has experienced an unprecedented 'plunge', with prices plummeting significantly, causing industry shock. At present, the average price of DMC market has fallen to 12750 yuan/ton, a direct decrease of 100 yuan from the previous trading day. This change not only caught market participants off guard, but also indicates the acceleration of industry reshuffle.
From the perspective of the market environment, the DMC market is facing multiple challenges. On the supply side, some individual factories have to choose price reductions and promotions to alleviate financial pressure due to severe inventory backlog. However, this measure did not effectively boost market demand. On the demand side, due to the influence of traditional off-season and tariff policies, downstream buyers mostly choose to hold their money and wait, resulting in a sluggish market for new orders.
The low volatility of silicon metal prices on the raw material side provides space for the decline of the DMC market. The high inventory and destocking willingness on the supply side are intertwined with the sluggish and price cutting sentiment on the demand side, leading to an increasingly fierce price war in the DMC market.
In this industry reshuffle, weaker companies will face the risk of being eliminated. Powerful enterprises are expected to further expand their market share and enhance their competitiveness through mergers and acquisitions, technological innovation, and other means. For DMC production enterprises, the current market situation is both a challenge and an opportunity. Enterprises need to strengthen their own strength construction, improve product quality and service level, in order to cope with increasingly fierce market competition. At the same time, it is necessary to closely monitor industry trends and policy changes, adjust strategic directions in a timely manner, seize market opportunities, and achieve sustainable development.