With the end of the Spring Festival holiday, the silicon material market quickly returned to normal and ushered in an unexpected wave of price hikes. Yesterday, industry leaders announced a comprehensive price increase of up to 500 yuan/ton for their core product lines - DMC (dimethyl cyclic siloxane), 107 rubber, raw rubber, and silicone oil. This measure quickly triggered a chain reaction within the industry, with DMC quotations soaring all the way to the 14300 yuan/ton mark, and the price of raw rubber successfully returning to a high of 15000 yuan/ton. In just a few days, the cumulative increase in February has exceeded 1000 yuan/ton, indicating the market heat.

The root cause of this price increase trend lies in a series of profound changes within the silicon materials industry. On the one hand, with increasingly strict environmental policies and rising production costs, individual factories are facing unprecedented pressure. In order to maintain the normal operation and profit margin of enterprises, many companies have begun to adopt the strategy of "reducing production to maintain price - reducing burden and raising prices", responding to market challenges by reducing production and increasing prices. On the other hand, with the gradual recovery of the global economy, especially the rapid development of emerging industries such as new energy and electronic information, the demand for silicon materials has shown explosive growth. The intensification of the supply-demand contradiction has further pushed up the market price of silicon materials.
However, price increases are not always smooth sailing. In terms of market response, there has been a significant differentiation in the acceptance of orders by individual factories. On the one hand, individual factories in Shandong and other regions have successfully attracted a large number of orders with relatively low costs and flexible sales strategies. Although DMC quotations have not reached the highest level in the industry, they still remain at around 13200 yuan/ton (excluding shipping costs), demonstrating strong market competitiveness. On the other hand, some high priced individual factories are facing the dilemma of reduced orders and inventory backlog. Middle and downstream customers are confused about the current regional price difference and generally adopt a wait-and-see attitude, negotiating prices with individual manufacturers while waiting for further clarification of market trends.