Recently, the silicone market has once again experienced a wave of price increases. With the implementation of production reduction plans by individual factories, the supply of DMC (dimethyl cyclic siloxane) in the market is gradually decreasing, and prices are also rising. According to market data, yesterday's DMC quotation has stabilized between 13400-13800 yuan/ton, but most individual factories are still gradually reducing production and releasing strong signals of price increases.
Behind this wave of price increases is the production reduction action carried out by individual factories to maintain prices. They increase production costs and market prices by reducing production, thus forming a closed loop of "production reduction cost increase price increase". Middle and downstream enterprises have different reactions to this, with some actively stocking up to cope with the upcoming price increase; However, another group of companies are temporarily observing due to high inventory levels.

On the demand side, with the arrival of the traditional peak season in March, downstream enterprises' stocking enthusiasm is also constantly increasing. The orders in the silicon products market have maintained stable growth, and the speed of replenishment has accelerated; At the same time, with the warming of temperatures and the resumption of outdoor work projects, the demand for construction adhesives in the market is gradually recovering. These positive factors provide strong support for the price increase in the silicone market.
However, the situation on the supply side is relatively complex. At present, the industry is in a dry season, and the differentiation between the north and south is increasing. Although the operating level of large factories in the north is still relatively high, the addition of silicon furnaces by some silicon plants in Inner Mongolia has led to an expected increase in subsequent supply. This may put some pressure on the price increase trend. However, overall, the short-term supply contraction will still be the core driving force for price increases.
In addition, from the perspective of the futures market, the price of 421 # silicon metal has stabilized between 11400-12450 yuan/ton, and the futures price continues to fluctuate at a low level. This means that there is significant resistance to the rebound of silicon prices in the short term, and the market will continue to operate at a low consolidation level. However, in the long run, with the gradual recovery of downstream demand and the adjustment of supply side production capacity, there is still room for price increases in the organic silicon market.
In summary, the organic silicon market is ushering in a new round of upward trend. The production reduction and price protection actions of individual factories, the gradual recovery of downstream demand, and the low-level fluctuations in the futures market are intertwined with multiple factors, jointly driving up market prices. In the coming days, whether individual factories will make further price adjustments will be the focus of market attention.