In the general environment of oversupply, the market transaction center gradually moves closer to the low price competition. At present, DMC of leading monomer plants is still at 19500 yuan/ton, but some monomer plants in Shandong continue to decline. Today, DMC opened down 200 yuan, and the quotation fell to 18000 yuan/ton. Other monomer plants also bid secretly. Stability maintenance before the festival seems to be in jeopardy. Everyone is waiting for the implementation of the live news. The upstream needs to actively plan the response plan, while the downstream is expecting to make profits. It seems that they are preparing for the expected order grabbing war.


In the short term, the difference between high and low DMC prices has reached 1500 yuan/ton, and low price manufacturers are almost unprofitable. However, the terminal continues to be weak, and there is a crisis of surprise release. Before the festival, low price DMC continues to stimulate their stock mood, and the imbalance between supply and demand limits. In the short term, most monomer plants have a strong desire to go to the warehouse before the festival, but due to the profit, the pressure of price reduction is also increasing.


Silicone oil and 107 glue: At present, DMC has a deep decline, but 107 glue can operate weakly and stably. Because 107 glue and silicone oil of the leading monomer plant have maintained stable operation this week, other monomer plants have also continued to rise in price. This week, the mainstream price of 107 glue is 19000~19600 yuan/ton, and most manufacturers have alleviated the price inversion with DMC. However, from the downstream perspective, DMC has fallen so much that 107 glue has no reason to maintain stability. It is only a matter of time before the drop. Therefore, the stock of silicone glue before the festival has not changed much. 107 glue enterprises can only operate weakly and stably, and the deal is not good.


In terms of silicone oil: DMC kept brushing the lowest price in the New Year, which weakened its cost support. However, it failed to compete with foreign silicone oil enterprises in the early stage, and there is a risk of stock accumulation. This week, domestic silicone oil reported 22300~23500 yuan/ton. However, after the foreign silicone oil bulk quotation rebounded to 24000~25000 yuan/ton, we are still paying close attention to the domestic silicone oil situation. It is not ruled out that the next price war will be prepared after the short auction.


Cracking material silicone oil and 107 glue: In recent days, news of big moves in the new material market has spread gradually, and the market has gradually become tense. Waste silica gel recyclers have finally arrived late, and the rough edge quotation has dropped to 7200~7300 yuan/ton. Cracking material enterprises have been stimulated by the price reduction, even if they have to be forced to reduce their losses. This week, the price of cracking material silicone oil excluding taxes has dropped to 20000~21000 yuan/ton, which is basically the same as that of new materials, and there is still no price advantage. At present, the cracking material enterprises have been eliminated, and the ones still in production are basically open and closed, with a production reduction rate of more than 60%. The new "chives" are becoming more and more difficult to cut, and the supply and demand pattern of waste silica gel has improved. Some recyclers are also worried about the high price of inventory and start to cut meat for cash. In the follow-up, the cracking feedstock manufacturers that are still insisting have seen a weak dawn.


On the whole, at present, the price of raw metal silicon is quite high, and some parts are accompanied by an increase. In Shandong, methyl chloride has risen 300 for two consecutive days. The cost has continued to strengthen, and the loss of individual plants has intensified, making it difficult to make profits. The downstream enterprises are limited by the terminal, so the goods preparation is constrained, and the goods in and out are in a dilemma. At present, they mainly wait and see, waiting for the opportunity to enter at a low price. To sum up, in the stock market competition, marketing also breaks the inherent model. It is hard to predict how much the live broadcast of the giant will affect the market, but for most of our silicone enterprises, how to embrace the Internet may also be an important challenge!