In late March, the silicone market cooled rapidly, which was mainly affected by two factors. Supply side: more new production capacity was released and put into the market in March. Demand side: demand shrinks and demand is suppressed. On the one hand, transportation is blocked due to the impact of the epidemic. On the other hand, downstream construction is also impacted. Not only the product factory is affected, but also the construction construction construction is greatly impressed.


In the second quarter, the price has approached the cost, but the demand side cannot recover quickly in the short term. It is expected that the price of some products will fall, but the space is limited. Once the price falls below the cost, there may be supply problems. After the epidemic, the demand side recovers, and the price is likely to rebound. At present, most downstream enterprises have little stock left in the early stage. Similar to the situation at the end of last year, the last rebound DMC price rebounded from the lowest 22000 yuan / ton to the highest 39000 yuan / ton. This year, there are more supply side increments. Even if the rebound is not too outrageous, we still need to be vigilant about the sudden rebound of price.