Breaking the price again! Due to the fact that the price drop of individual factories has not yet met downstream expectations, the market has a strong wait-and-see attitude, and the new order transaction situation is not ideal. Yesterday, some individual factories in Shandong fell another 200 yuan, and the DMC price fell below the 11000 mark, with a quoted price of 10800 yuan/ton! Other individual factories have also followed up and continued to follow up on the price for quantity action. However, downstream enterprises are dragged down by terminal demand and have limited stock of essential goods. Most buyers are still watching from the bottom. However, as the DMC transaction price falls below 11000, which is close to the historical bottom price of the previous round, some midstream and downstream enterprises may gradually enter the market to buy from the bottom. Overall, the price war has intensified the market pressure mentality and intensified the intensity of enterprise bidding. In this situation, the pressure on individual factories has doubled, and some manufacturers have begun to adjust their production strategies. At the end of the month, they will start equipment maintenance to reduce supply and stabilize prices. In the future, due to the inability of terminal demand to match supply speed, the DMC market price is unlikely to rebound significantly in the short term, and it is expected to continue to fluctuate at a low level in the short term.
Raw rubber market: With the further decline in raw material prices, raw rubber enterprises continue to follow up in order to stimulate trading volume and offer discounts. This week, the mainstream price of raw rubber is 12300-12500 yuan/ton, with a further price reduction of about 500 yuan. On the supply side: Currently, there has been no significant progress in offering discounts on raw rubber. Some companies with high inventory levels may intensify maintenance to avoid excess inventory. If raw rubber orders continue to receive poor feedback, some individual factories may consider reducing the burden on raw rubber equipment. In terms of demand, based on the recent order situation, the order volume of raw rubber enterprises is still average, and the leading A-class rigid demand orders still account for the majority. Other raw rubber enterprises find it difficult to compete with them, mainly focusing on core customer orders and spot orders. The competition in the raw rubber market is still fierce under limited replenishment orders, and the current market transaction price has fallen to around 12000 yuan/ton. Large volume orders can be negotiated. Overall, this week's raw rubber companies have been actively shipping, and by the end of the month, they may follow DMC to welcome a new round of market trends, which may cause a new wave in the market.
Rubber mixing market: Currently, rubber mixing enterprises are continuously suppressed by demand and are lowering prices for shipments. However, most enterprises face significant cost pressures and are unable to smoothly follow the downward trend of raw rubber. This week, the price of rubber mixing has dropped slightly to 12000-12800 yuan/ton, with actual negotiations focusing on discounts. Due to weak terminal demand and the absence of obvious signs of "Golden September", silicon product companies lack confidence in the future market, especially in the current market downturn. Some silicon product companies even maintain low production operations and have limited purchases of mixed rubber compounds due to risk aversion. Overall, due to poor shipments, silicon product companies have been slow to digest the mixed rubber, and have maintained stocking up on demand in procurement. The mixed rubber companies can only follow the downstream pace, with slow shipments being the main trend, while continuously being pressured to sell at lower prices, resulting in a weak and stable market.