The month end stocking node has arrived, and the organic silicon market game has entered a white hot stage. Specifically, individual factories are gradually implementing a 40% reduction plan, and the operating rate continues to decline. However, the speed at which midstream and downstream enterprises digest raw materials is far slower than expected, so the pressure of accumulated inventory in some individual factories has become apparent. Although the pre holiday quotation was firm, the actual transaction has loosened. It is understood that the pre holiday DMC transaction price has been discounted to 14000-14500 yuan/ton, indicating a slight lack of confidence in maintaining the price.
Under the deepening bearish expectations, even though some mid to downstream enterprises' inventory has dropped to a low level and theoretically there is a need to replenish inventory, the lack of orders has led their procurement strategy to turn to wait-and-see and wait for the decline, hoping to compensate for the shrinking profits in the early stage with lower procurement costs. However, upstream emissions reduction is continuing to advance, and if some inventory is released through profit sharing in the near future, coupled with supply side reduction, the market may be expected to form a new balance.
Can post holiday profit sharing stimulate downstream demand for replenishment? Will the reduction in production increase or loosen? Where is the bottom? The following text provides you with an in-depth analysis of the post holiday trend .... [Silicone Market Weekly Report - Full Analysis] Link:
Warning! Reduce production while secretly lowering prices! DMC transaction exploration! Raw glue, 107 glue, silicone oil After the holiday, we welcome a new round of market trends! Quick look!
In addition, it is worth noting for silicone and silicone product companies that as the implementation date of the new national standard for silicone rubber used in food contact approaches, some silicone product companies still have significant differences in the testing of the new national standard, especially in the face of some customers' requirements for 95% ethanol testing, which is difficult to achieve. However, due to compliance pressure, some orders can only be temporarily suspended. Due to various interpretations of the new national standard at this stage, some enterprises are often misled and constantly try and make mistakes.