Wind vane sealing plate! Price increase is gaining momentum! Specifically, due to the strong bullish atmosphere in the market, the Shandong wind direction remained closed for the week, and the cost side industrial silicon prices stabilized and rebounded, all major monomer factories had a strong willingness to rise. Yesterday, the DMC quotation of some monomer factories in North China rose to 13500 yuan/ton, and it is expected that other companies may continue to rise in the next two days. In terms of orders, with expectations of a rebound being fully met, there is a moderate amount of demand replenishment in both the middle and lower reaches, and a strong atmosphere of low-level stocking. The improvement in order acceptance also gives individual factories some confidence in a rebound.
Although the current industry is not optimistic about the upward trend, questioning all these operations is just a show of strength. But as for the current inventory of individual factories, after a wave of orders, there has been some release. In the long run, supply-demand imbalance has become the norm, and loss making competition frequently occurs. Therefore, we must firmly grasp any opportunity for a rebound. August has always been seen as an important prelude to the "golden September and silver October". Whether the traditional peak season for terminals can arrive as scheduled, most industry insiders believe that this year may be a false proposition, but the upstream cannot relax. This year, everyone can clearly feel the determination of major manufacturers to stabilize prices, coupled with two important price increase letters. If there is no rebound operation, where can market confidence be found in the second half of the year. The editor believes that a steady small increase at present may better promote the upward development of the market, and it is expected that DMC prices will mainly rise in the short term.
Raw rubber market: Major manufacturers DMC and raw rubber prices have not adjusted, and other raw rubber enterprises are also keeping a wait-and-see attitude. This week, the mainstream quotation for raw rubber continues to be 14000-14300 yuan/ton. At present, the rise of DMC has driven the stocking sentiment of rubber compound factories. This week, the main raw rubber factories A and B have significantly increased their orders from customers. In addition, the bullish atmosphere in the market has been strong, and some rubber compound enterprises have made small purchases, resulting in an increase in replenishment volume. Due to the difficult profitability of rubber mixing enterprises, they tend to prefer the main manufacturers with more price advantages in procurement. Other raw rubber enterprises still find it difficult to compete with the main manufacturers in order competition. The current price competition for raw rubber continues to be dominated by the main manufacturers with differentiated orders.
Overall, the number of orders received in the market has improved, and under the influence of DMC's rising trend, it is expected that the raw rubber will show a stable and moderately rising trend in the short term. The specific increase will depend on the trading performance of major manufacturers and downstream stocking volume.