Build a bottom and stabilize prices! DMC fell 100%! Report 14700! 107 glue, raw glue, silicone oil... all stabilize!

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Entering the first week of June, the silicone market is experiencing a critical turning point. The previous chaos of continuous bright stable and dark decline, price differentiation, and secret bidding has been significantly improved after last Friday's industry conference. Two major resolutions of the meeting: firstly, to strictly implement a 40% emission reduction plan from June to August, based on bed stoppage; Secondly, based on the current online quotations from Shandong and Northwest, the transaction price cannot exceed the current bottom price. The dual efforts of the supply side and pricing side have provided clear stabilization support for the market. At present, most individual factories and core customers have reported their demand for June, and will strictly implement a 40% reduction in emissions in the future. As of June 7th, the DMC online quotation for individual factories in Shandong is 14700 yuan/ton. Although new transactions are temporarily limited, individual factories have a strong willingness to stabilize prices, and disorderly bidding has been effectively curbed. However, we are currently in the off-season of the industry, with midstream and downstream enterprises experiencing a decline in orders and meager profits. Raw material procurement is generally cautious, and although the bearish sentiment has wavered after last week's meeting, only a moderate amount of entry is needed, and centralized replenishment is still being observed. Overall, the proactive reduction of production in the upstream provides substantial bottom support for the precarious market, effectively curbing the downward trend from spiraling out of control. The actual focus of subsequent transactions will move closer to the quotation range, and downstream companies may initiate a round of stock replenishment after confirming the price bottom, but due to the constraints of the off-season, the scale is limited. The overall market will show a trend of stable operation and moderate transactions.

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