Burst! At the beginning of March, the price of DMC 16800 yuan/ton was newly reported by a company in Shandong last week as 15600 yuan/ton after the war. This month, each ton has dropped sharply by 1200 yuan. Some upstream enterprises said that their current domestic and export orders are relatively sufficient, and their inventory is also at a relatively low level. According to the industry, the domestic silicone market is currently in the repair period, and after the peak period of large profit margin replenishment, the middle and lower reaches are currently in the stage of digesting inventory. DMC rebates are not price reductions, but rather we have achieved some industrial chain advantages and do not want to earn windfall profits and share them with long-term strategic customers. Various information shows that this year, the organic silicon industry chain will strictly implement capacity replacement and prohibit new production capacity. Further deepen the reform of mixed ownership, accelerate the merger and reorganization of the organic silicon industry, form a group of "specialized and innovative" pilot enterprises in different application fields, and change the small and fragmented situation of some organic silicon downstream industries through merger and reorganization.



Since 2023, with the continuous expansion of upstream raw material production capacity, the contradiction between supply and demand of silicone has been alleviated and turned to overcapacity. The price of silicone, known as "industrial monosodium glutamate", has continued to decline. Taking DMC as an example, the latest data shows that it has fallen below 16000 yuan/ton, down nearly 75% from last year's historical peak of 63500 yuan/ton. As the main raw material of organosilicon, the price of DMC has led downstream industry enterprises to significantly reduce their costs. Data shows that downstream demand remains stable. Domestically, the process of domestic demand has accelerated; Overseas, industrial demand is increasing. Several downstream listed companies have stated that they have no price reduction plans, and the lower prices of upstream raw materials are conducive to improving profitability.


Industry media news: Compared to the domestic market, silicone kitchenware is still a common choice for many households in Europe and the United States today. In 2023, inflation in some countries remains high, and the retail prices of local silicone kitchenware have soared. The brand silicone kitchenware exported by China is selling well in many overseas countries. Currently, Europe and North America are the largest export destinations for silicone kitchenware in China. The industry believes that with the continuous growth of overseas demand, the expansion of production of silicone kitchenware enterprises in China is accelerating, and the export categories and total volume of silicone kitchenware products are expected to continue to increase.