Since the beginning of 2022, DMC has gone its own way and soared all the way. In just one month after the festival, it has created an increase of 9500 yuan / ton. By Tuesday, Zhejiang mainstream monomer factory finally opened and received orders. DMC mainstream quoted 39000 yuan / ton and raw rubber 39800 yuan / ton, up about 2000 yuan / ton compared with last week's mainstream quotation. Compared with the strong price rise of raw materials, the middle and lower reaches survive in the cracks. According to our understanding from a number of middle and lower reaches manufacturers, we do not intend to prepare goods this week. We have a strong attitude of resistance to the current high price, or lead to the single factory receiving orders less than expected this week, and there is a risk of local rise and fall.


Yesterday, chemical grade metallic silicon 421# Huangpu port quoted 23800 ~ 24400 yuan / ton, up another 500 yuan. In the month after the festival, chemical grade metallic silicon has risen nearly 2000 yuan / ton. In the short term, it is still in the upward channel. However, DMC plant has a larger operating space and higher profit. This week, Zhejiang's main force resumed receiving orders, and the supply was relatively loose, while the enthusiasm of the middle and lower reaches for goods preparation was not strong. The market released subtle signals, and some traders may cash out and ship goods in advance. DMC supply will be significantly eased this week.


From the demand side, in the peak season of March, real estate projects have been opened one after another, which is good for the silicone rubber market, especially the continuous flow of domestic silicone oil export orders. To a certain extent, it promotes the purchase demand of 107 glue and silicone oil manufacturers for DMC. But now the price of DMC is rising faster than before, and the mentality of operators is changing. In order to avoid last year's tragedy, middle and downstream manufacturers generally maintain a small number of just needed purchases.


On the whole, the mainstream monomer factories are still willing to support the price, but as the rise has reached the peak, the market panic is spreading rapidly, resulting in insufficient follow-up of downstream demand, and the bearish mood has begun to rise. Pay attention to the high volatility of local DMC.