Undercurrent surging! At present, under the constraint of demand, the game between upstream and downstream supply and demand is intensifying. In order to break the transaction deadlock, DMC prices have repeatedly declined, and have plummeted by more than 1000 in the past week! Downstream companies are also struggling to maintain calm, and most companies want to enter at a lower price. Currently, DMC quotes range from 12500-13500 yuan/ton, and the transaction price has fallen to 12000-12500 yuan/ton. Large quantities can still be negotiated. It is understood that individual factories have been fiercely competing with downstream giants in the past two days, and are about to touch the expected price of downstream companies. The stocking sentiment may be released in the next two days, and downstream companies that can still accept orders are willing to take advantage of the low price and prepare for a small wave. Due to various individual factories competing for orders from major players, the previous infighting has escalated into the current open competition, with a strong sense of gunpowder. Enterprises that plan to stock up in large quantities can only let the bullets fly for a while. Overall, there are no winners in the vicious competition of the industry's "involution style", which not only puts itself in a loss making state, but the entire industry chain may also pay a price for it. At the current critical stage, it is still necessary to closely monitor the progress of downstream large-scale stocking and whether there is any forced shutdown of individual units.
107 glue and silicone oil market: Currently, the mainstream price of DMC is falling, the cost side is weakening, and the overall market environment is not very friendly. This week, the price of 107 glue has dropped to 13800-14300 yuan/ton, with a partial price reduction of 500 yuan. The price of silicone oil is 15000-15500 yuan/ton, and transactions are mainly based on negotiating discounts. Downstream silicone rubber enterprises, in order to avoid losses, rely on the transaction volume of DMC and hydrolysis products, and the expected downstream price reduction is around 1000 yuan. The bidding and shipment situation of 107 rubber and silicone oil enterprises has intensified, and the focus of transactions continues to decline. Looking at this week, due to the fact that major silicone rubber buyers usually purchase at the end of the month, various individual companies have been exchanging quantity for price with them one after another in the past week. In the round after round of competitive price comparison, major companies are still hovering, with small batches of urgent needs stocking up first and large quantities of stockpiling waiting to erupt. Subsequently, as the bidding reaches the red line of losses for some enterprises, they will proactively reduce production, decrease losses, or increase production. Foreign brand silicone oil: With the overall reduction of domestic silicone oil prices, the pressure on foreign brand silicone oil companies to ship has increased. However, the current tariff conflict continues to escalate, and the cost of imported silicone oil has sharply increased. Agents are reluctant to sell imported silicone oil inventory, while foreign brand silicone oil produced domestically has further intensified domestic silicone oil competition due to export impact. Currently, the price of conventional methyl silicone oil for foreign brands is 17500~19000 yuan/ton, with partial reductions.