Lithium, copper, and aluminum prices have risen across the board, and the cost of electric vehicles has skyrocketed, devouring the profits of car companies
Lithium, copper, aluminum, and DRAM are all on the rise! The profit margin of China's electric vehicle industry is being swallowed up. The cost increase of a medium-sized intelligent electric vehicle may reach as high as 4100 to 7000 yuan, almost completely eroding the original profit margin of 5% -8% of car companies. The fierce market competition and increasing consumer price sensitivity make it difficult for car companies to transfer costs to the final selling price. Multiple pressures are accelerating industry reshuffling, forcing some manufacturers to exit the market.
DMC prices rose in January, with a significant "export rush" effect. Domestic DMC prices continued to rise in January, mainly due to the reduction in volume in Luxi, the rise in prices at industry conferences, and the cancellation of the export tax rebate policy for polydimethylsiloxane starting from April 1st. Downstream companies have started a "export rush" mode, increasing their enthusiasm for stocking up and driving up mid day prices; Although foreign trade orders improved in the second half of the year, weak domestic demand led to a weakening of market transactions. The cost side support is loose, and the price of metal silicon 421 # at Tianjin Port remains stable at 9550-9950 yuan/ton, while the price of methanol continues to decline. On the downstream side, the prices of 107 rubber, 110 raw rubber, and dimethyl silicone oil first rose and then stabilized. Under policy stimulation, downstream stocks were replenished in stages, with 110 raw rubber rising by about 300 yuan/ton in mid season. Subsequently, the market entered a period of inventory digestion, and the market stabilized. Looking ahead to the future, with the support of intensive maintenance of individual factories and pre-sale orders in February, manufacturers have a strong willingness to raise prices, and it is expected that DMC prices will remain stable with small fluctuations in the month; The market performance in the next three months may initially be strong and then weak, and it is expected that the fluctuation range of DMC prices will be between 13500-15000 yuan/ton.
Summary of Organic Silicon Market on January 29th: The domestic DMC market showed a stable operating trend today, with the average price in the Chinese market remaining stable at 13850 yuan/ton. The individual factories maintain stable quotations, and currently there is not much overall inventory pressure, but there is differentiation in the pre-sale order situation. In terms of cost, although some small and medium-sized manufacturers in the northwest region have experienced sporadic shutdowns due to profit issues, large factories in Xinjiang still have profit margins and stable operating rates, with limited overall support on the cost side. The demand side has shown weak performance, with downstream enterprises mainly consuming their previous inventory, and low enthusiasm for inquiries and purchases. New market transactions are limited to a small amount of essential needs, and the overall trading atmosphere tends to be cautious. Looking ahead to the future, it is expected that DMC prices will maintain a trend of "large stability and small movements" in the short term. On the supply side, there is downward pressure on the operating rate due to the expected maintenance of the equipment in February. In terms of market mentality, individual factories face varying pressures to accept orders before the holiday, while downstream companies have a willingness to lower prices, and the game still exists.