The current domestic DMC market continues to weaken, with the average market price dropping to 13300 yuan/ton, a decrease of 400 yuan/ton from the previous working day. From a cost perspective, the main raw materials, industrial silicon and methanol, show a weak and fluctuating trend in the short term, which leaves room for further exploration of overall production costs. Although some individual factories have eased their inventory backlog due to a decrease in operating rates, and companies have a strong willingness to take orders, the purchasing atmosphere in the end market at the end of the month remains light. Affected by this, the inventory pressure of manufacturers has once again rebounded. In order to promote transactions, some local manufacturers have recently started to offer discounts and promotions, which has led to a gradual decline in market prices and further expansion of the overall decline. Faced with the continuous downward trend in prices, some downstream customers have started to replenish their inventory at low prices, which has slightly improved the trading atmosphere in the low range. Overall, against the backdrop of weakened cost support and no substantial improvement in demand, it is expected that DMC market prices will mainly operate in a stable to weak manner in the short term.
Preliminary data shows that Evonik expects its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the second quarter to be between 600 million and 650 million euros. Calculated by the median interval, it increased by 23% compared to the same period last year (Q2 2025: 509 million euros). In early May of this year, Winco had expected its second quarter earnings to reach at least 550 million euros. This positive performance is mainly due to the increase in sales volume and selling prices, as well as the continuous implementation of cost reduction measures. Among them, the advanced technology business sector has shown particularly outstanding performance. Due to supply chain disruptions, Asian competitors are facing restrictions on raw material supply. With the reopening of the Strait of Hormuz and the gradual restoration of stability in global shipping, the aforementioned favorable factors are expected to weaken later this year. Therefore, there is still uncertainty in the second half of the year. However, the animal nutrition business is expected to continue its positive momentum in the third quarter. According to preliminary data, Evonik's adjusted EBITDA for the first half of 2026 is approximately 1.1 billion euros. Based on the above business development situation, Yingchuang has significantly raised its full year forecast for 2026. The company expects its adjusted EBITDA for the full year to be between 2 billion and 2.2 billion euros, higher than the previously expected range of 1.7 billion to 2 billion euros. In 2025, the adjusted EBITDA of Evonik is approximately 1.9 billion euros. In terms of free cash flow, the cash conversion rate target of Winco remains at around 40% (2025: 37%). The company expects a significant increase in free cash flow in the second quarter compared to the same period last year (Q2 2025: negative 211 million euros). Faced with the ongoing structural challenges in the chemical industry, Winchuang is continuously promoting transformation. As announced on June 18th, the company will continue and expand the "Evonik Tailor Made" efficiency enhancement project, further implementing more structural optimization and efficiency improvement measures in the administrative and operational departments. As part of the "Yingchuang Customization" and other efficiency enhancement projects across various business lines, the company will reduce 2800 positions between 2024 and 2026, and plans to further reduce approximately 3200 positions between 2027 and 2029. The project aims to continuously optimize the cost structure and enhance the company's long-term competitiveness. Yingchuang will release its final financial data for the second quarter as planned on August 4, 2026.