It is reported that the industry index in October was 49.7%, a decrease of 0.6 percentage points compared to the previous month. The industry index continues to decline slightly, with both the new order index and the average inventory turnover index decreasing. The ending inventory index remains below 50%, indicating that there is still insufficient demand for the organic silicon business, with prices of major products falling and demand side inventory levels continuing to decline. Yesterday, DMC fell again, with the top three major companies leading the decline in November contract prices, but the decline was not significant. As the saying goes, don't expect a big rebound within two months, it won't happen. It is reported that the leading factory has confirmed that it will reduce production and adjust the inventory of its key products. Currently, DMC stands at 14200 yuan/ton, while the transaction prices of other individual factories have fallen to over 13000 yuan/ton.
As of November 6th, the mainstream spot prices for DMC in China are currently over 13000 yuan/ton, 14500-15500 yuan/ton for raw rubber, 13900-14300 yuan/ton for 107 rubber, and 15500-16800 yuan/ton for silicone oil. 421 # metal silicon is reported at 12500-13100 yuan/ton, and chloromethane is reported at 2600-2700 yuan/ton. Although it is well known that the current silicone industry is in a rare and difficult period in history, leading companies are taking the lead in maintaining rational prices. The industry believes that the sustained downturn in DMC will force related enterprises to either increase their own usage rate or reduce production. The era of low-priced products disrupting the market order of the silicone industry may come to an end, and the industrial chain pattern is expected to be reshaped. Downstream differentiated technology product prices are expected to enter an upward channel, which is beneficial for individual enterprises with a complete downstream product chain.
The signs of continued decline in purchasing power among American consumers are becoming increasingly apparent. According to official media, Republican presidential candidate Trump announced his victory in the 2024 presidential election early on the morning of the 6th. Mr. Wu analyzed that the election results have a profound impact, and organic silicon enterprises that have formed outstanding competitive advantages in technology, products, customers, brands, and other aspects will reap great dividends. Due to the significant decline in the capital and consumption dividends that the United States is exporting globally, its strategic contraction will cause the world to lose order and protection, entering a state of social Darwinism. Those who have been abandoned by productivity will face a very difficult time losing their dividends. And disruptive technological products will abandon countless old people and industries from the course of history. Just the beginning, next up are brain computer interfaces, gene editing, autonomous driving, robots, digital currencies, energy storage networks, nuclear energy A series of new quality productivity and organic silicon products that operate on the edge of law and morality will accelerate their release under the protection of high-quality development.