Currently, there are sufficient pre-sale orders from individual factories. Driven by the phased replenishment in the middle and lower reaches at the end of March, most pre-sale orders from individual factories have been scheduled until mid April, and some optimistic enterprises have even scheduled them until late April. At the same time as the downstream procurement market improves, upstream supply has further tightened. At the beginning of the year, the industry's heavyweight conference confirmed that the mandatory production reduction ratio for the entire industry from March to May will be raised to 35%. The expectation of single production enterprises undergoing maintenance and reducing load in April is more concentrated, which will help alleviate supply pressure. Moreover, the cost of organosilicon is still rising, and the price of methanol, an important raw material for organosilicon, has sharply increased recently. Since the outbreak of the Middle East conflict, spot methanol prices in Southeast Asia, India, Europe, and the United States have all experienced varying degrees of increase. Among them, from the outbreak of the conflict to March 20th local time, CFR Southeast Asia methanol landed prices have surged by 72%, the highest level in nearly five years. Last week, the world's largest single unit methanol production base announced that it had encountered force majeure, igniting the market and directly causing the global methanol supply gap to instantly widen, leading to a full rise in methanol prices! In terms of exports, starting from April 1, 2026, the export tax rebate for primary form polydimethylsiloxane will be cancelled; At the same time, the rise in freight costs has also intensified industry pressure, with multiple exporters stating that as oil prices climb to new highs, freight rates have increased by between 10% and 30%, and in some cases even up to 50%. The export cost of organosilicon in April will continue to rise. Due to the combination of multiple factors, the willingness of individual factories to raise prices has increased. Several DMC companies have been closed for several consecutive days. As of last Friday, the mainstream DMC quotation has remained stable at 14300 yuan/ton. In late March, individual factories have released price increase signals and are expected to increase by another 1000! Recently, upstream manufacturers will hold another industry conference, and the results of the conference will directly affect the silicone market in the second quarter, further strengthening the bullish mentality!
Market Overview: Last week, DMC prices remained weak and stable. The price of silicon metal fluctuates narrowly, while the price of methanol fluctuates and rises, and the pressure on the cost side continues to increase. The maintenance and restart of individual devices coexist, and the overall supply is abundant; Downstream raw material inventory is low, coupled with expectations of price increases in April, inquiries and purchases have rebounded, and DMC new order transactions have improved. The current mainstream quotation for DMC is 14300-15400 yuan/ton. The actual average transaction price is around 13950 yuan/ton. Last week, the prices of DMC raw materials remained weak and stable, while the prices of 107 rubber, raw rubber, mixed rubber, and silicone oil remained stable. DMC is expected to rise, and downstream cost pressure will further increase. It is expected that the price of organic silicon products will remain stable and rise in the short term.