In April, the beauty of the earth fades away, and the peach blossoms in mountain temples begin to bloom. As we enter the second quarter, the organic silicon market will continue to operate at a high level. Looking back at March, the organic silicon market showed an upward trend across the entire industry chain. Specifically, the 35% emission reduction target explicitly proposed by individual factories and the strengthening of joint price support attitude have resulted in limited overall fluctuations despite some concessions in transaction prices. The rebound pattern has not been disrupted. With the significant increase in production costs of bulk raw materials such as methanol due to geopolitical conflicts, individual factories have a strong willingness to rise again under profit pressure. In late March, there was a wave of replenishment in the middle and lower reaches. Last week, several large factories stocked up on thousands of tons of goods, and pre-sale orders from individual factories were scheduled until late April. The closure and price increase have made a comeback.
As of March 29th, the leading price is 15400 yuan/ton, the mainstream DMC price is 14300 yuan/ton, and the monthly average price is 14317.33 yuan/ton, an increase of 2.56% compared to the previous month;
Looking at April, the upstream conference will be held soon, and it has already been announced that there will be another increase of 1000! The continuous surge in methanol prices has caused the middle and lower reaches, who were originally cautious and even bearish, to quickly switch to buying after the rise, undoubtedly further strengthening the bullish atmosphere in the market.
Overall, the core logic behind this surge is mainly due to strong cost support from upstream raw materials. There is still a certain negative impact on the demand side due to the cancellation of export tax rebates. In the short term, domestic organic silicon exports may face pressure from a temporary decline in orders. However, the trend of international giants raising prices and shutting down overseas facilities has become clear. In the long run, the dominant position of China's organic silicon industry in the global export pattern will continue to consolidate.
The "Golden Three" has successfully concluded, and with the collective rise of the entire industry chain, the monthly increase of individual factories has once again been realized.
This week officially enters the second quarter, if it rises by 1000 as promised! DMC will break through the 15000 mark, what will be the stocking power in the middle and lower reaches? Do you think the new wave of price increases in April can be implemented? Next, the editor will discuss and exchange ideas with everyone .....