There is a price but no market, supply exceeds demand, prices continue to fall, and there is no bottom in sight! These four sentences have become the curse of the current silicone market, there is no minimum! Only lower! In the past two weeks, the situation has spiraled out of control, and there have been constant voices of selling goods on various fronts. As of now, the decline in DMC is approaching 3000 yuan. The current DMC quotation is 11500-12000 yuan/ton, and the transaction price is between 11300-11500 yuan/ton. Many companies that have been in the industry for nearly 20 years have expressed that they have seen the lowest price ever. It can be said that this is not a simple decline, but a stampede! At present, the sustained decline of individual factories is still strong, leading to a deepening of bearish expectations in the middle and lower reaches, and the inventory transfer speed is relatively slow. From the perspective of stocking pace, some middle and lower reaches enterprises have entered the bottom buying stage, and the market transaction situation has improved. However, the fierce fighting among individual factories has not stopped yet, and the stocking volume of middle and lower reaches enterprises is still reserved. They will wait for the opportunity to lower prices and add bottom buying. Overall, the bottom fishing layout has been launched, which is expected to alleviate the inventory pressure of individual enterprises, but the profit is facing the risk of loss. However, the current terminal demand is difficult to be optimistic, and the current transactions are only inventory transfers. It is difficult for the upstream to achieve a rebound from oversold in the short term. It is expected that the organic silicon market will continue to fluctuate at the bottom, and the operating rate of individual units will be closely monitored in the future.
Raw rubber market: This week, raw rubber companies continued to follow the cost decline, with mainstream quotes falling to 12700-13300 yuan/ton and transaction prices hovering around 12500 yuan/ton; On the supply side, due to the quick profit sharing actions of leading factories last week, most rubber mixing enterprises were stimulated to actively complete the monthly basic quantity of three cars, and some large households even bought 600-800 tons at the bottom. After the leading factories received a wave of orders, other individual factories faced order contraction. In addition, DMC fell even more sharply. Large rubber mixing factories with rubber production lines are currently mainly purchasing DMC. For most individual factories, if they want to stimulate rubber mixing factories to buy more at the bottom and stock up, it is expected that prices will be further discounted, and some rubber production units will continue to operate at a reduced load. In the short term, after waves of decline injected into the market, the trading atmosphere has greatly improved. However, under the cover of the nest, there is no complete egg. The entire organic silicon industry chain is competing for orders at ultra-low prices one after another, and the cake of terminal demand cannot be expanded in the short term. Any further decline will only complete inventory transfer, and monetization will take some time. With only about a week left until May Day, in order to complete phased destocking before the holiday, some rubber factories with large inventory levels may further increase their low price stimulation. It is expected that the price of rubber this week will show a stable downward trend.