Recently, the organic silicon market has been undergoing rapid changes, and the price of DMC (dimethyl cyclic siloxane) is about to usher in a new round of price increases. With the implementation of production reduction plans by most individual factories, the supply of DMC in the market is gradually decreasing, and the upward pressure on prices is significantly increasing. According to market observations, DMC quotations have stabilized in the range of 13400-13800 yuan/ton yesterday, but most industry insiders predict that a wave of price increases may erupt in the near future.
The root cause of this price increase trend lies in the production reduction and price protection strategy of individual factories. Faced with market competition and cost pressure, individual factories have chosen to reduce production to increase product added value, thereby driving up prices. Middle and downstream enterprises have different reactions to this, with some actively stocking up to cope with potential price fluctuations, while others choose to wait and see due to sufficient inventory.

On the demand side, with the arrival of spring, downstream industries are gradually recovering, and the demand for silicone products continues to grow. The silicon products market has stable orders and strong demand for replenishment; At the same time, the demand for silicone adhesives and other organic silicon products in terminal markets such as construction and automobiles is gradually recovering. These positive factors provide strong support for the increase in DMC prices.
However, the uncertainty on the supply side still poses certain risks to the market. Although most individual factories have implemented production reduction plans, the operating levels of some large northern factories are still relatively high, and the new silicon furnace production capacity in Inner Mongolia and other places is about to be released, which may have a certain impact on the price increase trend. However, overall, the short-term supply contraction remains the main factor driving price increases.
In addition, fluctuations in the futures market have added a touch of uncertainty to the silicone market. 421 # Metal silicon futures prices continue to fluctuate at a low level, with significant resistance to rebound in the short term. 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.