The booming business of dollar stores in the United States has attracted customers from all income levels, and Americans are seeking ways to alleviate their financial difficulties. Dollar General, the largest chain of dollar stores in the United States, announced on Thursday that same store sales increased by 2.5% in the third quarter. Its smaller competitor, Dollar Tree, also announced strong performance on Wednesday, with same store sales increasing by 4.2%. These stores sell a wide variety of goods, from frozen foods to holiday decorations. Their inventory is mostly of medium size, and their pricing is also relatively moderate. Dollar Tree Company stated that 85% of sales this quarter were priced at $2 or less. In addition, the sales of consumer silicone products in the United States have grown strongly by about 25% this year.
In the fourth quarter, the domestic organic silicon market continued its strong upward trend, achieving five consecutive weeks of price increases. News: Dongyue Silicon Materials announced on the investor interaction platform on December 5th that the equipment that was previously affected by the fire and shut down has now resumed normal production. Meanwhile, two other individual factories have reached a consensus to jointly increase their investment layout in the field of silicone terminal products by 2026. According to relevant predictions, with the expansion of the application of organic silicon materials in fields such as power communication, consumer electronics, rail transit, medical health, and photovoltaic new energy, the market demand is expected to achieve an average annual rapid growth of 30% in the next three years, and the industry has broad prospects.
This round of market trend is driven by multiple factors, including strengthened industry self-discipline, emission reduction policy constraints, significant cost support, and market expectations for future supply structure adjustments. The market is generally concerned that individual companies may make significant adjustments to their production capacity and operating rates next year, further exacerbating concerns about medium - and long-term supply.
As the year-end sprint draws to a close, market confidence continues to consolidate under the joint promotion of policies and the industry. Last week, upstream and downstream enterprises jointly raised prices, and the second round of price increases has been fully implemented. The cumulative increase of major products since the rebound in November has reached 15% -20%. Among them, the price of DMC has risen to around 14000 yuan/ton, and the increase in dimethyl silicone oil is particularly significant, reaching 20%. As of December 7th, the mainstream quotes in the spot market are as follows: DMC: 13500-14000 yuan/ton; 107 glue: 14200-14500 yuan/ton; Raw rubber: 14500-15000 yuan/ton; Methyl silicone oil: 15200-16500 yuan/ton.
The current round of price increases has generally exceeded 3000 yuan/ton, and the price system has entered the repair stage. Although there is some differentiation in the market, some midstream and downstream enterprises still have concerns about terminal demand and have not yet stocked up on a large scale, but essential procurement has gradually accepted the current high prices. Industry insiders believe that the cost of raw materials continues to spread to the middle and lower reaches, and a wave of price increases for downstream end products is brewing.
From the perspective of supply and demand structure, after centralized stocking in the early stage, the inventory of middle and downstream enterprises is relatively sufficient. Before the year, they mainly focused on digesting inventory, and the pace of high-level procurement slightly slowed down. In the spot market, the overall trend in the East and South China regions is upward consolidation, but there is a slight differentiation in rhythm between regions. During the week, social inventory remained low, coupled with favorable factors such as producer price increases and equipment maintenance. Most of the holders of goods were exploring price increases, but downstream progress has slowed down, and resistance to high price transactions has increased. The market mentality has turned cautious, and the focus of negotiations has gradually stabilized.
Looking ahead to the future, under the coordinated promotion of upstream and downstream, the supply and demand structure of the organic silicon market is showing an improvement trend, and the price system is gradually recovering. It is expected that with the launch of a new round of contract order negotiations in the later stage, the market is expected to experience a positive adjustment. Overall, both the supply and demand sides are seeking a new balance point, and the short-term market may show a stable and moderate consolidation trend, jointly promoting the return of market value. The industry is expected to usher in a "new cycle" with positive expectations.
Swedish furniture group IKEA's supply chain executive revealed that the import costs of products such as bookcases, mattresses, and sofas have significantly increased due to the impact of tariffs during the Trump presidency. IKEA plans to purchase more products from domestic factories in the United States. This marks a significant shift in IKEA's strategy. Over the past decade, the proportion of American made products produced by the company has continued to decline. Inter IKEA, the authorized party of the IKEA brand, once had a factory in Danville, Virginia, but closed it in 2019 and relocated production back to Europe.
Apple is experiencing a wave of executive resignations as the company continues to undergo a period of transformation, not only reflected in its leadership, but also in its business if competitors succeed. On Thursday, the company announced that its chief legal advisor and policy director will retire next year. On Wednesday, a top designer jumped to Meta. On Monday, Apple announced that its AI strategy director will retire. The company's Chief Operating Officer announced his retirement in July, and its Chief Financial Officer was transferred to a new position at the end of last year. In the past 12 months, four executives at Apple have resigned, and dozens of Apple employees have switched to competitors OpenAI and Meta Platforms.
Vale has lowered its iron ore production forecast for 2026 due to the cooling demand for this critical steelmaking raw material and the influx of new African ore supply into the market. This Brazilian company is one of the world's largest producers of iron ore. The company announced on Tuesday that next year's production will be between 335 million and 345 million tons, lower than the previously given range of 340 million to 360 million tons. Vale stated that it expects the "long-term" price of iron ore to remain at around $100 per ton, partially supported by demand from India and Southeast Asia. This expectation is still more optimistic than the judgment of most analysts, who expect prices to drop to $70 to $80 per ton in the next two years.