Recently, the silicone market has ushered in a new round of changes. With the implementation of production reduction plans by most individual factories, the price of DMC (dimethyl cyclic siloxane) is showing an upward trend, and the market is about to usher in a new round of price hikes. According to market observations, yesterday's DMC quotation has stabilized in the range of 13400-13800 yuan/ton, but industry insiders predict that the price increase trend may fully 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 strong demand for organic silicon products in terminal markets such as silicon products, construction, and automobiles provides strong support for market price increases. However, the uncertainty on the supply side still poses certain risks to the market. Some large factories in the north have a relatively high level of operation, 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.
Faced with this complex and ever-changing market environment, silicone enterprises need to remain vigilant and closely monitor market dynamics and price trends. At the same time, we will strengthen technological innovation and product research and development, enhance product added value and market competitiveness, in order to cope with potential market fluctuations and price challenges. In addition, enterprises need to strengthen cooperation and communication with upstream and downstream industrial chains to jointly respond to the challenges and opportunities brought by market changes.