Yesterday, the overall organic silicon market remained stable, and DMC quotations have stopped rising. Some companies have slightly lowered their prices, with a decline of 50-100 yuan/ton. The narrow fluctuations in the prices of silicon metal and methanol have limited impact on the cost side. The current market is difficult to sustain an upward trend, mainly constrained by two factors: firstly, multiple small and medium-sized facilities are resuming production, and an increase in supply has become a certainty; Secondly, the positive factors supporting the upward trend of DMC this year are limited. Except for occasional accidents, the overall demand is weak, making it difficult to drive the market to rise significantly.
It is reported that the price competition in the mixed rubber market will further intensify in 2025. Recently, three large production enterprises in Dongguan have initiated a new round of price reductions, with some models offering discounts of up to 100-200 yuan/ton. The lowest transaction price for conventional hardness mixed rubber has approached the 11000 yuan/ton mark, indicating that the current market competition has entered a white hot stage.
It is worth noting that the outbreak of this round of price war is not a sudden event. In the past two years, these three major Dongguan factories have conducted multiple rounds of exploratory price reductions and promotions in regional markets such as South China and East China. What the industry did not expect was that the originally localized price competition would rapidly spread in 2025 and eventually evolve into a comprehensive price war affecting the silicone industry chain.
Industry insiders have analyzed that the price war reflects a deep game behind the concentrated release of industry production capacity. After experiencing a sustained expansion of production capacity in the early stage, the market supply and demand pattern has undergone significant changes. At the same time, downstream silicon product companies, guided by the concept of "prudent replenishment", have become more cautious in their procurement behavior, prompting some rubber compound manufacturers to maintain production and sales balance through price adjustments. Price promotion has become one of the important market strategies for companies to maintain performance growth.
Regarding the impact of this price war, industry experts believe that the round of price reductions led by the three major manufacturers in Dongguan, although intensifying the competitive pressure in the rubber mixing process, objectively benefits downstream silicon product enterprises in reducing costs, and its subsequent impact on the profit distribution of the industrial chain deserves continued attention.