DMC， Suddenly plummet! Locally dropped back to over 12000. Now, when we re-examine the trend chart of organosilicon in recent years, it is not difficult to find that every important turning point is almost in line with each other. This once again confirms the cyclical nature of market operation, where everything is included and difficult to escape.
Monitoring data shows that as the impact of the trial production news of the million ton expansion project continues to ferment, DMC continues to decline, which in turn triggers multiple individual enterprises to make up for the decline, and market pessimism continues to deepen. Industry insiders believe that the lowest price of 421 # silicon metal has fallen to 12300 yuan/ton. In order to compete for more orders, DMC has fallen back to 12000 yuan/ton. It is only a matter of time. Currently, orders ranging from 12800 to 12900 yuan/ton have emerged. At present, the contract prices of the products of the vast majority of individual enterprises are far lower than in early April, especially DMC, which is more obvious. With the impact of the expansion wave and trial production news, in the short term, the market is currently in the off-season of traditional organic silicon consumption, coupled with the interference of continuous production capacity expansion, resulting in a slow market destocking speed.
As the end of the month approaches, some individual manufacturers, under multiple pressures such as incomplete agreements and high inventory levels, still have an additional profit margin of 50-100 yuan/ton on the basis of price reductions. However, due to the mentality of "buying up, not buying down" and the impact of the off-season in the market, downstream purchasing willingness is not strong, and the trading atmosphere in the market remained quiet on the 25th, with overall poor shipments from individual manufacturers. In a weak reality environment, individual manufacturers are reducing their production in August and mainly lowering prices to reduce inventory. Overall, it is expected that domestic organic silicon prices will continue to be weak in August.
Although the silicone market is often seen as elusive, industry experts believe that changes in silicone prices are largely related to DMC, which has a wide range of applications in various silicone product fields. Its demand often directly reflects the widespread fluctuations in industry activities, becoming one of the important indicators for measuring the ups and downs of the organic silicon industry chain. Therefore, DMC prices are sensitive to market changes, and any small fluctuations in the real economy can lead to price fluctuations. Therefore, DMC has attracted much attention from the industry and is known as industrial MSG, symbolizing its core position in the field of organosilicon. At the end of a market cycle, there is often a short squeeze market, just like the forced short market of DMC from January to March. And then DMC prices began a southward trend. As the most important industrial raw material, the significant decline in DMC prices reflects the overall weak demand in the global real economy.