Rise up, rise up! DMC silicone oil 'sudden change in wind direction'! Last week, the industrial silicon market stopped falling and stabilized, and market sentiment continued to improve. It is reported that the transaction price of DMC silicone oil generally rebounded by 100-200 yuan on Friday, with the mainstream transaction price of DMC ranging from 13000 to 13200 yuan/ton. Sources reveal that Hubei and Zhejiang have restarted limited orders for individual units, what does this mean? Individual factories follow the existing "limited quantity mentality", which may be seen by some as a means of competing in a new price range.
Is the price war of organic silicon about to come to an end? At the end of July, multiple silicone giants announced brand rejuvenation strategies, with price increases ranging from 10-15%. On July 31st, Xin'an Corporation issued a notice of price adjustment for silicon-based products, stating that due to the serious competition and vicious competition in the current industry's general products, and based on the need to maintain the healthy development ecology of the industry and Xin'an's own business, after careful and comprehensive evaluation, Xin'an's silicon-based materials business will adjust the prices of Xin'an's organic silicon and inorganic silicon series general products from August 15th, 2024 or the date allowed by the contract. Based on different product lines and markets, the average increase in adjustment is 10%! Mr. Wu also recently stated that the price war in the second half of the year may experience a slowdown. After fierce competition in the first half of the year, the market may gradually form a new price equilibrium point.
According to sources, "selling silicon at a loss" will eventually come to an end, and the price increase of leading companies is coming. Last Friday, leading companies informed large customers by phone that their products will be adjusted in mid August, with a range of about 5-10%. Overall, the leading company did not cause any problems with the price this time, and it has remained stable for three consecutive months, sending a new signal to the market. Perhaps the turning point of the organic silicon price war is finally coming. The Central Politburo meeting emphasized the need to cultivate and strengthen emerging and future industries. We must vigorously promote high-level technological self-reliance and self-improvement, strengthen key core technology research and development, and promote the transformation and upgrading of traditional industries. We need to provide strong and effective support for the development of gazelle and unicorn enterprises. We need to strengthen industry self-discipline and prevent vicious competition in the form of internal competition. Strengthening the mechanism of survival of the fittest in the market and opening up channels for the exit of outdated and inefficient production capacity are believed to be beneficial for the long-term healthy development of the industry.