Entering Wednesday, the silicone market may experience another wave of turbulence. From the perspective of the market, the DMC market has been experiencing strong growth recently, and the atmosphere of speculation has become increasingly strong. Although some mid to downstream enterprises have actively inquired, the price of organic silicon remained unchanged yesterday. Mid to downstream enterprises are still waiting for the landing, and everyone is eagerly anticipating whether DMC prices will trigger a new trend. In terms of orders, under the trend of DMC rising last week, midstream and downstream enterprises have increased their purchases based on the mentality of "buying up, not buying down". Although DMC prices have remained unchanged in recent days, the order schedule of individual factories is relatively optimistic, and there is currently no inventory pressure. The production reduction plan is being implemented in stages, laying the foundation for further increases in the future. Driven by the upward trend, the mid to lower reaches have also seen some improvement in recent orders, with some manufacturers adding additional positions based on order volume. It is expected that DMC will continue to operate at a high price this week, with a high probability of exploring an increase.
Raw rubber market: DMC did not update its quotation this week, and raw rubber factories mainly stabilized their prices. The mainstream quotation remained stable at 14500-14800 yuan/ton. On the supply side, some raw rubber units have followed the overall production reduction rhythm of individual factories and have reduced their burden. The leading factories have sufficient orders, and with the support of pre-sale orders, the pressure on the raw rubber supply side is not significant in the near future. In terms of demand, due to the gradual delivery of orders by downstream enterprises in the early stage, there has been an increase in orders currently received, and under the continuous driving force of the upward trend, some rubber mixing enterprises have increased their stocking actions. Some powerful enterprises have made early arrangements and have sufficient inventory, so they are somewhat cautious about chasing price increases and stocking up. However, they are optimistic about this round of upward trend. If there is a significant increase in orders recently, it is not ruled out that another wave of essential stocking up will be welcomed at the end of the month. Overall, the market has been suppressed by low prices for a long time, and both upstream and downstream have a strong willingness to improve. The market buying sentiment has formed a positive feedback. It is expected that the price adjustment of raw rubber will continue to revolve around leading factories in the short term, depending on the pricing strategy of individual factories in the next two days.
The mixed rubber market: The price of raw rubber remained unchanged this week, and the price of mixed rubber remained stable at 13000-13800 yuan/ton. At present, downstream silicon product manufacturers are actively stocking up under the influence of rising prices. At the same time, due to trade disputes, overseas channel partners are stocking up in advance, with orders placed two months in advance. Some product factories have seen a significant increase in orders, making it easier for them to digest the mixed rubber. However, in terms of prices, mixed rubber enterprises still face low price competition, making it difficult to keep up with price increases. As a result, mixed rubber enterprises are also cautious about chasing the rise of raw rubber, and it is expected that the market will remain stable in the short term. Regarding silicon product factories: Based on last week's price increase, silicon product companies have stocked up on some goods. However, the price of mixed rubber has not kept up with the increase, and silicon product negotiations still have the upper hand, so they are purchasing at low prices. High priced goods still require another wave of upward momentum from individual factories. At present, downstream silicon product enterprises have fully resumed normal production. As the peak season of spring approaches, the demand for small household appliances, daily chemical products and other related fields will gradually increase.