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The delicate balance of the organic silicon market, Eken's strategic transformation seeking new opportunities

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In the delicate balance of the silicone market, every subtle fluctuation can trigger a chain reaction. At present, the domestic DMC market price remains stable at around 12650 yuan/ton, and most production enterprises maintain the original price. However, the difference between inventory and pre-sale orders makes enterprises hesitate between price persistence and shipment. The market quotation and negotiation atmosphere remain stable today, while downstream markets are adopting a wait-and-see attitude due to high inventory, resulting in slightly weak new order transactions.
On the raw material side, the metal silicon market is under pressure and moving forward, but the cost pressure has not eased. On the supply side, the maintenance of some individual units has led to short-term supply shortages. On the demand side, it appears calm and the market lacks clear signals of a boost.

In this context, the strategic transformation of Eken Group is particularly noteworthy. Its "Silicone" department, as a provider of comprehensive silicone products, serves multiple fields from energy to cosmetics, electronics, aerospace, automotive, health, and construction. Although the operating profit of the department has increased compared to 2023 and the pre interest, tax, depreciation, and amortization profit has also achieved positive growth, the group has decided to make strategic adjustments.
The group pointed out that there are multiple factors to consider behind this decision, including rapid changes in market conditions, increasingly fierce competition, and the strategic positioning of business departments. Especially in the Chinese market, the sustained downturn in the real estate market has led to overcapacity, weakened demand for construction products, and thus put pressure on sales prices. Therefore, Eken is actively exploring various options, including selling its silicone division, in order to find a breakthrough in the new market environment.

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