Reduced production and guaranteed price fermentation! Methyl chloride rebounds 300! The whole line of silicone is stable! Steady! Steady! Today DMC stands firm at 17300 yuan/ton!
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Entering the silicone market in October, the promotion market was opened one after another, which should be the bleakest "gold nine silver ten" since 2016! Although the promotion efforts are getting stronger each time, the downstream stock feedback is getting worse each time. In desperation, production reduction and price protection have become the "only way out" in the near future! After all, the decisive factor of the market is supply and demand. If the upstream does not reduce production, it will be useless to lower the price under high inventory.
Today, most individual plants are willing to reduce their negative load and maintain stability. The mainstream DMC quotation is 17300~18000 yuan/ton, and the external quotation of each plant is still 700 yuan/ton. However, the firm offer remains at 17000-17500 yuan/ton last week, and the low quotation on the surface has no advantage. On the whole, DMC prices held a stable and small momentum this week.
From the supply side, the current quotation of 421 # metal silicon Huangpu Port is 21800~22100 yuan/ton, which is stable after rising. The price of methyl chloride in Shandong Province was raised to 3500 yuan/ton yesterday, a small increase of 300 yuan. The high level of cost fluctuated, further impacting some single plants that have already lost money. For single plants with complete industry chains, the market is also facing the risk of profit upside down regardless of cost. It can be seen that the upstream margin is obviously insufficient.
In terms of operating rate: At present, in order to reduce losses, Shandong, Zhejiang, Hubei and other regions all have single units to reduce the load. At the same time, Xinjiang and Inner Mongolia are affected by masks, which not only reduce the load, but also face many hurdles in logistics. In the short term, the reduction of production is the operation of the general trend, which can ease the current situation of no drop. But in the long run, this operation is not sustainable. If the operating rate decreases, the cost will rise. The pressure of oversupply is likely to exist for a long time.
