Entering Friday, the month end stocking node is approaching. Due to the drag of demand, the middle and lower reaches are mainly focused on digesting their own inventory. The new orders of individual factories this week are flat, and the atmosphere of profit sharing is heating up. The market transaction price has slightly loosened downwards. However, major factories in the northwest have significantly reduced production, and there is still breathing space for bidding pressure from individual factories. In the low-level stalemate, only core customers are being negotiated for concessions. However, downstream enterprises still face severe challenges in terms of terminal demand after the macro positive stimulus gradually weakens, resulting in a lack of market confidence and feedback on poor orders. In the short term, the current mainstream quotation for DMC is 11300-12500 yuan/ton, and the upstream and downstream game will continue. Low price transactions are still the mainstream. Cost aspect: The overall supply of industrial silicon market is loose, and this week's futures have hit a new historical low, falling below the important threshold of 8000 yuan/ton. On May 21st, the main contract SI2507 for industrial silicon futures hit a new low of 7830 yuan/ton since its listing, closing at 7865 yuan/ton, a decrease of 1.75%. At present, although the northern region continues to reduce production, the southwest has entered a period of abundant water, and the number of furnaces will gradually increase in the future. The rebound of industrial silicon is still far away. On the demand side, the demand for polysilicon terminals is weak, prices are weak, and the overall procurement environment is flat; The demand for organic silicon is mainly based on inquiries, and the release of demand is limited under the operation of load reduction. Overall, the industrial silicon market is still in the stage of clearing production capacity, and spot prices continue to fluctuate downward, weakening support for individual factories once again.
Precipitation white carbon black market: On the raw material side, due to the strong wait-and-see sentiment in downstream markets, the sulfuric acid market continues to operate at a stable price; In terms of soda ash, due to the sluggish demand in the terminal market, downstream enterprises maintain a cautious procurement strategy, and soda ash continues to operate steadily with a hidden decline. The overall cost is weak and fluctuating, with little impact on the precipitation of white carbon black. The market transaction focus is still mainly on demand. At present, the silicone rubber market is facing a shortage of orders and limited demand, with basic bargain hunting and average market trading. Therefore, precipitated white carbon black enterprises are maintaining a high price operation. Currently, the price of precipitated white carbon black for silicone rubber is 6300-7000 yuan/ton, and it is mainly operating weakly in the short term.