The countdown to stocking up at the end of the month is four days! Recently, the organic silicon market has shown a trend of overall price increases, driving downstream enterprises to gradually enter the end of month stocking rhythm. Among them, some manufacturers have continued to increase their external quotations due to the pressure of raw material costs and low inventory, further exacerbating the bullish sentiment in the market. At the same time, in order to avoid further cost increases, downstream enterprises have accelerated their procurement pace. In this positive situation, downstream terminals have also launched corresponding market entry operations. This round of upward trend has been brewing since around the 10th, with some areas rising first on the 12th and multiple limited edition closures. On the 18th, the overall trend rose to the same level. After half a month of fermentation, the upward trend has extended from DMC to the entire industry chain. With the coordinated upward operation of upstream and downstream enterprises, the market trading atmosphere has heated up, and the focus of transactions continues to rise. At present, since the 18th, the collective price increase has been nearly a week, and the attitude of individual factories remains consistent. The increase has gradually been digested by the middle and lower reaches, and the bearish sentiment in the market has changed. In the past two days, there has been some improvement in new order transactions, and the confidence of individual factories to raise prices has further increased. Local DMC has risen another 100 yuan, reporting 13300 yuan/ton! Due to the comprehensive emission reduction of 30% in December, the production costs of each individual factory have also increased accordingly. It is expected that DMC will support 13500 in the near future, and the plan for December is to increase it to 14000. This can basically cover most individual factories to turn losses into profits and truly achieve profit recovery.
Raw rubber market: The price of raw rubber remained firm at 14000-14200 yuan/ton this week. From the supply side, new orders for raw rubber are still being pushed forward, and most manufacturers are mainly focusing on placing preliminary orders. Due to the continued supply of traders in the market, although the mixed rubber market is actively following the rise, caution is still exercised in purchasing high priced raw rubber. However, the inventory of raw rubber in most individual factories is also not high. Under the joint emission reduction in December, some raw rubber units will shrink, so the raw rubber supply side has a strong incentive to raise prices and keep up with the pace of DMC price adjustments. The mixed rubber market: This week, the mixed rubber market followed the trend of raw rubber, and prices showed a strong trend, with mainstream quotes rising to 13000-13500 yuan/ton. On site, due to the strong price of raw rubber and cost pressures, the operating rate of rubber mixing enterprises has remained stable. Some enterprises have slightly increased their operating rate due to an increase in orders. At the same time, downstream silicon product companies are enthusiastic about purchasing, not only increasing their demand for essential goods, but also some companies have increased their stocking efforts to cope with possible price increases in the future, resulting in strong demand in the mixed rubber market. In summary, the inventory level of rubber mixing enterprises has significantly eased, further supporting price increases. It is expected that the market price of mixed rubber will remain high at the end of the month.