The May Day holiday is approaching, and the silicone market is still floating like a duckweed in the wind and rain. From the on-site perspective, there has been no substantial recovery in terminal demand at present, but the end of month stocking node has arrived, and DMC prices have also reached historical lows. Middle and downstream enterprises are actively buying at the bottom and stocking up, and the market transaction situation is gradually improving. However, in the situation of supply-demand imbalance, the entire industry chain is under significant pressure in the price war, and the current stabilization still requires cooperation in reducing production in the later stage. Otherwise, both upstream and downstream will find it difficult to stay out of the situation. Therefore, "buying a decline" has become a foregone conclusion, and everyone also needs to consider the risk of operating losses in the future, and try to control risks within a reasonable range. When buying at the bottom, everyone still retains a bit of rationality and caution, and purchases according to the regular stock volume. It is expected that the organic silicon market will stabilize by the end of the month. Overall, April is coming to an end and DMC has reached its lowest price in history. The operational space for individual factories is very limited. However, without substantial improvement in demand, individual factories cannot make more effective sales strategies and often fall into a cyclical periodic price war. Enterprises with weak competitiveness will face the risk of being eliminated. In the future, under homogeneous competition, quality improvement and technological innovation are the core points of internal competition, and most enterprises may continue to extend downstream and focus on laying out the technology track.
107 glue and silicone oil market: DMC prices have fallen sharply, and 107 glue and silicone oil have also actively followed suit. The price of 107 glue is 12300-13000 yuan/ton, and the price of silicone oil is 14000-14800 yuan/ton, with some falling by 2000 yuan. From the supply side perspective, the downward cost has significantly weakened the support for the prices of 107 rubber and silicone oil, and the bargaining power is basically controlled by downstream. The prices of 107 rubber and silicone oil have fluctuated, and in order to avoid losses, the operating rate has also decreased synchronously. In terms of orders, there has not been a significant increase in orders from silicone rubber manufacturers, as the real estate industry is still deeply mired in difficulties. Silicone rubber companies only maintain essential needs for the procurement of 107 rubber and silicone oil, and large investors only make routine pre holiday layouts. Although the bottom fishing campaign has promoted market transactions, the operating pressure on 107 rubber and silicone oil companies is still relatively high. Overall, downstream silicone rubber companies have started stocking up before the holiday, but there is no significant market support. However, 107 rubber and silicone oil companies have a strong willingness to ship, and it is expected that they will continue to adopt the strategy of exchanging price for quantity, and there is a widespread phenomenon of secret negotiations to give up profits.