The last day of March! DMC's decline deepened! Originally, I thought March might end with a stable ending, but yesterday, a few single factories in Shandong Province were once again thunderstruck! After the second price adjustment in the afternoon, DMC quoted 15200 yuan/ton, plummeting by 400 yuan, pulling the market back into a competitive situation with its own efforts. Currently, DMC from other monomer factories still offers 15800-16000 yuan/ton externally. Under the pressure of inventory removal, the competition among various manufacturers has intensified from cost considerations to a "life to death" strange circle. They used practical actions to tell their friends, don't be surprised, don't feel heartache, as long as I want, I can press lower!


As of March 31, DMC's mainstream quotation was between 15200 and 16000 yuan/ton, with a decrease of 1475 yuan/ton or 8.51% compared to the beginning of the month; From the perspective of average price trend, the average price in March was 16835.09 yuan/ton, down 3.55% month on month and 52.39% year on year. Overall, the first quarter was a bad start, and before taking a few steps to repair the market, it was hit back by weak demand and overcapacity issues. It is expected that the next "silver fourth" situation may not be very optimistic, and more production reduction operations need to be stimulated to alleviate the bearish sentiment.


Precipitated silica market: On the raw material side, despite weak cost support and weak downstream demand, the sulfuric acid and soda ash markets have recently shown a steady downward trend, but prices are still high, which still supports the precipitated silica market. On the demand side, there has been no substantial improvement in terminal demand, coupled with a pattern of oversupply in the downstream mixed rubber market, high enterprise inventory, a basic stagnation in trading, and a low adoption rate of silica. Therefore, at present, the quotation for precipitated silica for silicone rubber is still maintained at 6500-7500 yuan/ton, with partial transactions surreptitiously yielding profits! It is expected to maintain weak operation in the short term.


Vapor phase silica market: At the raw material end, the price of silicon tetrachloride has been operating steadily in the near future, with some loosening of monochlorosilane and a slight decline in cost, which has no significant impact on gas silicon for the time being. From the perspective of orders, downstream silicone rubber, paint, and sewing agent companies have limited terminal demand, low production enthusiasm, poor supply transmission in the market, and low circulation efficiency. They purchase only the gas silicon they need, but the gas silicon companies have poor order acceptance. The quotation is also limited by cost, maintaining a differentiated situation. The 200 ratio table shows that the high-end price of gaseous phase white carbon black is 24000-26000 yuan/ton, and the low-end price is 17000-2000 yuan/ton. The transaction can be negotiated based on the quantity, In the short term, demand continues to cool, and the gas silicon ratio may enter a negative situation.


Overall, the terminal recovery was less than expected, and the traditional "Jinsan" has become "Tiesan", resulting in fierce competition for profit sharing by monomer factories. In March, the overall silicone market showed a downward trend. From the perspective of several rounds of decline, the feedback from monomer factories on profit margins and shipments is generally satisfactory, and now they are on the path of "reducing production and ensuring price". Currently, most monomer factories are operating at reduced prices, aiming to alleviate the tension between supply and demand by reducing the supply side. However, the transaction focus of the organic silicon market is still on the demand side, and demand has not recovered. Any upstream strategy can only temporarily alleviate the situation, and cannot completely reverse the supply and demand pattern from the root cause. As April approaches, let's wait and see whether the "Silver Fourth" can successfully arrive.