The secret war is fierce! This week, organic silicon was mainly kept stable, and DMC's quotation was clearly between 15800 and 16200 yuan/ton. Due to the weak sentiment of bottom reading in the downstream, although monomer factories have reduced production, there is some time to alleviate the imbalance between supply and demand. Therefore, some manufacturers are rapidly reducing their inventory, and there is fierce private competition. Yesterday, individual monomer factories secretly sold DMC at 15600 yuan/ton, and the editor checked that the last time DMC was sold at such a low price, it could be traced back to April and May 2020. However, at that time, the metal silicon price was only 12000 yuan/ton, and now the metal silicon price is between 17200 yuan and 18300 yuan/ton. If we only look at the profit margin, DMC should have hit a record low in nearly 7 years! With such generosity, how can we not let the market move? Yesterday's low level transactions have significantly improved, and I have a premonition that a wave of reverse operations will come again. There is just a hint of concern. Can the leading factory, which has been stable for a week, maintain a synchronous price increase?


Overall, orders received this week have been somewhat differentiated, but the atmosphere of picking up goods in the middle and lower reaches has been driven. At the same time, the production reduction is ongoing. Even if some individual factories continue to fall behind the scenes, the time is relatively short, so there is a need for stock preparation and appropriate access can be made.


Precipitated silica market: This week, some manufacturers issued a price increase letter for silica, causing some turmoil in the market. However, through our understanding, the price of ordinary silica for rubber and tires has increased, while silica for silicone rubber has remained stable for the time being, with the quotation still maintained at 6500-7500 yuan/ton. Due to the decrease in the operating load of soda ash enterprises and the continuation of high prices, there is still support for precipitated silica at the cost side. On the demand side, as the delivery of orders for mixed rubber was completed in February, the receipt of orders entered a bottleneck period. In March, the operating rate significantly decreased, and the demand for precipitated silica also weakened. It is precisely this factor that ordinary silica can be increased by 500, while silica used for silicone rubber dare not easily raise the price. Perhaps this is the same industry chain, with all prosperity and all damage! It is expected that precipitated silica used for silicone rubber will mainly maintain stable operation in the short term.