This Wednesday, the silicone market once again became the focus of industry attention. Recently, the market performance of dimethyl cyclic siloxane (DMC) has been impressive, showing a strong upward trend, and the atmosphere of market speculation has become increasingly significant. Although some midstream and downstream enterprises actively inquired, the price of organic silicon did not change yesterday, which led to midstream and downstream enterprises still being in a wait-and-see state, full of expectations for the future trend of DMC prices.

Looking back at last week, the DMC's upward trend significantly affected the purchasing decisions of midstream and downstream enterprises. Based on the market psychology of "buying up, not buying down", the purchasing volume of mid to downstream enterprises has increased. Although DMC prices have remained stable in recent days, the order schedule for individual factories is quite optimistic, and there is currently no inventory pressure. In addition, individual factories are implementing production reduction plans in an orderly manner, laying a solid foundation for further price increases in the future. Based on this, it is expected that DMC will continue to maintain its upward trend this week, and there is a high possibility of an upward trend. Market participants are closely monitoring its subsequent development.
In terms of the raw rubber market, DMC did not update its quotation this week, and raw rubber factories mainly adopt a price stabilization strategy, with mainstream quotations remaining stable within a specific range. From the supply side, some rubber production units have followed the overall production reduction rhythm of individual factories and have reduced their burden, while leading factories have sufficient orders. Supported by pre-sale orders from various individual factories, there has been little pressure on the raw rubber supply side recently. In terms of demand, with the gradual delivery of early orders by downstream enterprises, the current order volume has increased. Driven by the continuous upward trend, some rubber mixing enterprises have increased their stocking actions. Some strong enterprises have already laid out in advance, with sufficient inventory, and are somewhat cautious in stocking up for price increases. However, these companies generally expressed optimism about this round of upward trend. If there is a significant increase in recent orders, it cannot be ruled out that there will be a wave of urgent stocking at the end of the month.