Summary of Organic Silicon Market on December 4th: The domestic DMC market is on the rise, with the average price in the Chinese market rising to 13550 yuan/ton, an increase of 200 yuan/ton from the previous trading day.
Affected by the news released at the industry conference, most individual factories took measures to close their inventory in the morning, further highlighting the tight situation of DMC spot supply. Against the backdrop of tight spot supply, the main factories in Shandong have raised their quotations by 200 yuan/ton simultaneously. The market's pursuit of price increases has become apparent, and some downstream enterprises have made moderate purchases to promote an improvement in the purchasing atmosphere among manufacturers. Supported by industry emission reduction expectations, most companies raised their offers to around 13700 yuan/ton at noon, but high priced transactions still need to be verified by actual demand.
It is expected that the DMC market price will remain stable and rise in the short term, mainly due to factors such as supply. Starting from early December, the maintenance plan for individual factories will gradually increase, which will provide some support for the supply side; In terms of market mentality, production enterprises have a strong intention to raise prices; On the cost side, the current industrial silicon market lacks significant positive factors, and it is expected to continue to fluctuate weakly in the short term, with limited driving force for DMC costs.
At present, under the consensus of "anti involution" and promoting emission reduction, the entire line of organic silicon products has risen significantly compared to before the industry conference, with an increase of 2500-3000 yuan/ton. After the industry conference on the 18th of last month, the mainstream quotation of DMC rose strongly to 13200 yuan/ton, and then the second round of price increases. Under the expectation of emission reduction, upstream manufacturers tentatively raised prices, and now the mainstream quotation has steadily risen to 13700 yuan/ton. Looking at the downstream market, although there has been a "buy up" reaction, the demand for organic silicon terminals has not recovered, and downstream actions are not significant. They are still essential purchases and are mostly cautious about price increases. With the continuous deepening of industry self-discipline, downstream is expected to gradually accept and digest this round of price increases, and upstream and downstream are expected to further cooperate to jointly maintain the healthy operation of the market.