Recently, the key links in the organic silicon industry chain - DMC (dimethyl cyclic siloxane) and the raw rubber market - are working together to perform a magnificent price increase drama. This is not only a strong rebound from the low price market in the early stage, but also an inevitable result of upstream and downstream enterprises in the industry chain jointly seeking profit recovery.
DMC market: Rising like a rainbow, ready to take off
Since the beginning of this week, the DMC market has declared its firm determination to raise prices in an undeniable manner. Although some midstream and downstream enterprises adopt a wait-and-see attitude in the early stages of price changes, they have begun to actively inquire and try to seize the best purchasing opportunity in the face of the continuously fermenting atmosphere of price increases. The upward trend of DMC last week has stimulated the "buy up, not buy down" mentality of middle and downstream enterprises, resulting in an increase in procurement volume this week.

In terms of individual factories, facing the recovery of market demand, they not only have no inventory pressure, but also pave the way for subsequent price increases through phased production reduction plans. This strategy not only effectively controls the market supply, but also further exacerbates the tense atmosphere in the market, providing strong support for the continuous rise of DMC prices.
Raw rubber market: seeking progress while maintaining stability, waiting for the east wind
Compared to the enthusiasm of the DMC market, the raw rubber market appears more stable. This week, the mainstream price of raw rubber remained stable in the range of 14500-14800 yuan/ton, indicating the cautious attitude of the supply side towards market changes. Part of the raw rubber equipment follows the overall rhythm of the individual factory, adjusting the production load moderately to ensure market supply and demand balance.
On the demand side, with the comprehensive resumption of work and production by downstream silicon product enterprises, as well as the approaching spring peak season, the demand for raw rubber is gradually released. In addition, due to trade disputes, overseas distributors have stocked up in advance, leading to pre orders and further promoting the activity of the raw rubber market. Despite the current price stability, the market generally believes that with the continuous rise of the DMC market, the price of raw rubber will also usher in a new round of adjustment.
Industrial chain linkage: Dancing with the rising trend, seeking win-win situation
The linkage effect between DMC and the raw rubber market is significant, and the price increase of both not only enhances the profitability of upstream raw material enterprises, but also provides opportunities for cost transfer for middle and downstream enterprises. In the wave of price increases, upstream and downstream enterprises in the industrial chain are jointly responding to market changes and seeking to maximize profits by optimizing inventory management and improving production efficiency.