Down 300, up 500! At the opening of the market on Monday, individual monomer plants in Shandong resolutely stopped rising and fell by 300 in order to stimulate downstream orders. DMC reported 20500 yuan / ton, which was stable today. On the other hand, some monomer plants increased the price of DMC by 500, which pushed the price of DMC to 21500 yuan / ton. At present, the mainstream price of DMC is 20500-21500 yuan / ton, and the price difference of DMC is 1000. However, in a comprehensive view, the leading monomer factory is temporarily stable, the downstream bargain hunting purchasing mentality remains unchanged, and the market turnover remains between 20500-21000 yuan / ton.


From the supply side: this week, the current power limit policy in Sichuan has been extended to the 25th. Although the supply of metal silicon is still shrinking, it has risen too fast in the early stage. The monomer plants have not taken orders because of the poor demand of the downstream terminals. Some monomer plants even choose to reduce production and stop production in order to reduce losses. Therefore, since last Friday, the ability of metal silicon price increase has become weak. At present, the raw material chemical grade metal silicon 421 # Huangpu port offers 22700-23100 yuan / ton, The price is temporarily stable. A manufacturer of chloroform in Shandong Province has lowered it to 4050 yuan / ton, nearly 3000 yuan / ton lower than the peak. It is expected that the cost pressure of subsequent DMC will be relieved.






In terms of operating rate: Although there was a long-standing surge of 1000 yuan last week, it was basically swallowed up by high costs, and the profit of the monomer plant was not improved. Due to the limited follow-up force of the downstream, the rising trend could not be smoothly transmitted. In order to avoid further losses, the monomer plant, in addition to the planned overhaul of Hebei and Zhejiang units and the Xinjiang unit affected by the Yi situation, also increased its unplanned active shutdown and load reduction.


From the demand side, it is now the end of August, and the silicone market has been bumpy this year. However, some people in the industry still have expectations for "gold, silver and ten". Therefore, there is an increase in the recent need to stock up, which seems to be saving strength for the next September. However, more downstream enterprises believe that the silicone market is relatively negative this year, and they are not very concerned about the rise and fall of raw materials. They insist on purchasing on demand, The inventory is maintained at 15-20 days. In the short term, as a prelude to the golden nine and silver ten, the downstream market will recover. However, this improvement is not enough to reverse the supply and demand pattern, so the market boost is limited.


To sum up, as the metal silicon stops rising and stabilizes, it is expected that this round of silicone pull-up will come to an end, but the power restriction is still continuing, and it will take some time for the metal silicon production capacity to recover. Under the pressure of high cost, the monomer plant has little room for decline, and it is still tossing around the cost line in the short term, even losing money.