Recently, confidence in the silicone market has increased, mainly due to the production reduction and price protection strategies of monomer factories. Faced with the contradiction between market supply and demand and the pressure of price decline, multiple individual factories have chosen to reduce production to support prices, which has received a positive response from the market.

It is reported that although some individual factories in Shandong province made small concessions last week, most of them remain firm in stabilizing the market and plan to reduce production to reduce market supply and support prices. Yesterday, some individual factories even suspended their quotations, creating a strong atmosphere of waiting for price increases. As a result, the purchasing enthusiasm of downstream enterprises has increased, and there has been a significant increase in low-priced orders from individual factories in Shandong.
As of now, the transaction price of DMC has slightly increased to 12600-1290 yuan/ton, and some manufacturers plan to place orders at 13000 yuan/ton, an overall increase of about 200 yuan/ton compared to before the holiday. Although this increase is not significant, it is enough to boost market confidence.
On the supply side, although large factories in the northwest have resumed some production capacity during the Spring Festival and several large silicon factories plan to increase production slightly in February, overall, due to the incomplete recovery of downstream demand, the market supply is still relatively abundant. However, with the increasing efforts of individual factories to reduce production and maintain prices, and the gradual recovery of downstream demand, it is expected that the supply-demand contradiction in the market will be somewhat alleviated.