This week, the organosilicon market fell and fluctuated driven by DMC. Yesterday, the quotation of individual monomer factories in Shandong suddenly fell, falling twice in a day, from 39500 yuan / ton to 38500 yuan / ton, while the quotation of other monomer factories remained stable at 39000 yuan / ton. The spot auction price of individual monomer factories fell, which was sudden but expected. After all, the recent rise was too fast, and the downstream demand had just recovered, so it was impossible to quickly transfer the cost pressure. Therefore, after other mainstream manufacturers resumed their offer, the supply of goods was relaxed, and the high price was adjusted accordingly.


Raw rubber Market: the current raw rubber market either breaks out after closing the market or plays a game in silence. Whether to prepare goods or not is undoubtedly the most talked about topic by people in the rubber mix market. Today, the mainstream quotation of raw rubber is still strong at 39800 yuan / ton. On the one hand, DMC is only a partial price decline, and the cost still has a certain support. On the other hand, raw rubber manufacturers control the supply, and follow up actively, but follow-up is not positive. Even if the transaction of new orders this week is poor, the price will remain stable, mainly pre-sale orders. The price adjustment is expected to be carried out in the latter ten days, and the adjustment range depends on the DMC price as a reference.


Rubber compounding Market: due to the current high price of raw rubber, the transmission of rubber compounding costs to the downstream is relatively lagging, and the prevalence of bearish bargaining among product manufacturers, the high price shipment of rubber compounding added resistance this week. Some small and medium-sized rubber mixing enterprises have no choice but to complain: "we are now in a dilemma. Raw rubber remains high, silicon products wait and see to reduce the price, and we are facing losses whether we prepare goods or rush ahead in advance.". However, due to the situation, the price of raw rubber does not fall, and the profit making space of mixed rubber is also limited. It is expected that the raw rubber price will mainly be adjusted at a high level this week, while the mixed rubber market is "watching the excitement", waiting for the price reduction to make up the position.


Demand side of silicon products: the market affects the whole body. Individual manufacturers can guide everyone to focus on bullish or bearish. Due to the decline of local DMC quotation, based on the law of "buying up but not buying down", most of the product factories are on the sidelines this week. It was difficult to pass on the high price. If the profit of rubber compound is small in the short term, the product factory may be more passive in preparing goods.


To sum up, the pace of the market is too big and needs time to digest. We still need to take a breath in the middle. No matter how strong the upstream is, we also need to take into account the downstream demand. At present, the transmission of the rise in the middle and downstream is slow and the profit is seriously compressed, and the enthusiasm to catch up with the rise will subside. This week, the market continues to wait and see, and the market bearish sentiment is also rising. DMC is expected to remain high and volatile in the near future. At present, individual manufacturers are going down, which has not aroused too many waves, but the market is surging in an undercurrent.