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Market Outlook and Cost Dynamics of Organic Silicon DMC

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Recently, the market for organic silicon dimethyl cyclohexane (DMC) has shown a stable and bullish trend, with increasing expectations for price increases within the industry. Last week, DMC prices maintained good stability, despite the weak stability and narrow decline in prices of silicon metal and methanol as their key raw materials. The downward pressure on the cost side seemed to exist, but in reality, the contraction of the supply side provided solid support for prices. Multiple individual factories have chosen to shut down their operations, and the atmosphere of price increases in the market has become increasingly strong. Currently, the mainstream self pickup quotation for DMC is between 13000 and 13800 yuan/ton.

The relative stability of the raw material market has maintained stable prices for downstream products such as 107 rubber, raw rubber, and mixed rubber, and the market is gradually digesting the previous increase. Against the backdrop of ongoing cost pressures, silicone oil companies have adopted a strategy of locally raising prices to cope. Despite the slow pace of downstream demand recovery, market expectations for future price increases have prompted some buyers to plan ahead to mitigate the impact of potential cost increases. It is expected that in the short term, as the price of raw material DMC continues to rise, the cost push effect will become apparent, driving the prices of products in the entire organic silicon industry chain to stabilize and rise.

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