The whole line is falling! Following the low-priced competition among individual factories in Shandong, other individual factories have also shown signs of decline, and a new round of price wars has begun! Yesterday, the mainstream quotation of DMC fell across the board to 11500-12000 yuan/ton, a decrease of 500-1000 yuan; The prices of 107 glue and raw glue have also dropped by about 1000, and the action of exchanging price for quantity has been launched again. From the on-site perspective, with the follow-up of the decline in various individual factories, DMC sold at a minimum of 10800 yuan/ton. The wind of upstream price decline is spreading, and middle and downstream enterprises are driven by the cost decline and are gradually following up to stock up. However, the terminal demand node has not yet arrived, and downstream enterprises are only taking advantage of the east wind of raw material price decline to replenish inventory. Even some enterprises are still waiting for lower price layout under the buying sentiment. Overall, as the "Golden September and Silver October" approaches, downstream enterprises have a certain demand for replenishment at the end of the month, and the demand for essential goods may be released, which is beneficial for individual factories to reduce inventory. However, in order to avoid expanding losses, individual factories may stabilize their operations after a wave of low-priced orders. Under the supply-demand game, middle and downstream enterprises need to seize the opportunity to layout at low prices. It is expected that after this round of price war, there will be another oversold rebound at the end of the month!
107 glue and silicone oil market: Currently, raw material prices have decreased, and the price of 107 glue has followed up to 12000-12500 yuan/ton, with a weekly drop of 800 yuan or 6.15%. The price of silicone oil continues to be 14000-14500 yuan/ton. Specifically, after the cost decline, 107 rubber companies quickly followed suit, but the price of silicone oil remained stable due to another cost constraint of silicone ether, resulting in a significant drop in actual shipments. In terms of orders, due to the strong bearish atmosphere on the market, downstream silicone rubber companies have been boosted by macro positive factors and have increased their enthusiasm for replenishing their positions. On the other hand, under the bearish sentiment, they are also looking for suitable opportunities to stock up at low prices. Therefore, there is an increasing demand for 107 rubber and silicone oil inquiries at present. However, the atmosphere of sluggish terminal demand remains unchanged, and actual transactions are still in a tug of war to avoid the risk of bargain hunting and short selling in the future. Overall, various individual factories are competing fiercely, while other 107 rubber and silicone oil companies are quickly following suit, and the price war has entered a white hot stage. However, downstream silicone rubber companies are constrained by the dual pressures of profit and demand, and their stocking attitudes are relatively cautious. With the intensification of bidding by 107 rubber and silicone oil companies, the risk aversion of silicone rubber companies has become increasingly strong, and they may return to caution after a brief round of low-level hoarding. It is expected that in the short term, 107 rubber and silicone oil companies will maintain a price for volume trend, with prices showing a weak and volatile trend.