Individual factories have reported stable and rising prices, with most companies receiving sufficient pre orders. The main force of DMC in Shandong has closed down, leading to a tight spot market. As far as we know, DMC, a single factory in Shandong, has been closed for five consecutive days, and pre-sale orders for D4 and linear bodies have shown particularly strong performance. It is expected that D4 will also be closed in the near future. This measure not only strengthens the expectation of supply side contraction, but also has a significant spillover effect on other single factories, promoting the overall bullish atmosphere in the market.
In terms of price, last week the DMC transaction price increased comprehensively to 14800 yuan/ton, and the increase in April perfectly landed. The midstream and downstream sectors are stimulated by the lockdown, and the urgent need for stocking up is actively followed up. In addition, the early orders are still being delivered, and some individual DMC factories are mainly for their own use. The order schedule is generally delayed until early May, and a new round of upward trend is poised to take off.
From the perspective of industry fundamentals, the net profits of individual factories in the first quarter have all surged. Behind the turnaround from losses to profits is the structural reversal brought about by the "anti internalization" of the organic silicon industry. With the warning of huge losses from multiple individual factories in 2025, this rebound that has lasted for nearly five months marks the industry's official farewell to the vicious competition of the "prisoner's dilemma" and the continuous deepening of industry synergy. In the short term, although demand is unlikely to increase significantly, with rigid demand being the main factor, driven by rising costs, the middle and lower reaches will also complete a key transition from "price increases" to "high price transactions", while also increasing their acceptance of high priced raw materials.
How will the market perform this week? As the May Day holiday approaches, pre holiday stocking in the middle and lower reaches will enter a critical window period. Can a new round of resonance be formed between the tight supply of spot goods on the supply side and the replenishment of downstream demand? Is there a possibility of prices soaring again before the holiday? 【 Silicone Market Weekly Report - Full Analysis 】 Please click on the following link: