Recently, the market price of DMC (dimethyl cyclic siloxane) has remained in the range of 13400-14000 yuan/ton. Although the price appears stable on the surface, there are hidden currents surging within the market. Mainstream individual factories have quietly launched a gradual production reduction plan, reducing supply scale by lowering device load rates and simultaneously releasing signals of price increases. According to industry data, the current industry operating rate has significantly decreased by 5-8 percentage points compared to the beginning of the month, providing strong support for the bottoming out of DMC prices.

The adjustment of the supply side not only directly reduces market circulation, but also pushes up marginal production costs due to the weakening of economies of scale. With the increase of production reduction, the DMC price center shows an upward trend. It is estimated that for every 1 percentage point increase in production reduction, it will support the DMC price center to move up by about 200 yuan/ton. This trend indicates that DMC prices may show a ladder like upward trend in the short term.
Faced with supply side fluctuations, midstream and downstream enterprises have different reactions. Some processing enterprises actively implement the strategy of stocking up on dips based on cost transmission prediction, in order to increase the turnover days of raw material inventory; Enterprises with high inventory pressure maintain a cautious attitude and choose to postpone procurement until the market becomes clear. This differentiation pattern reflects the differentiated expectations of price trends in different links of the industrial chain.