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Market Differentiation and Strategic Adjustment under the Rise of Silicon Material Prices

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Recently, the silicon material market has experienced a wave of price increases, with leading companies announcing price hikes. Their products such as DMC, 107 glue, raw rubber, and silicone oil have all seen varying degrees of price increases. This wave of price increases has not only attracted widespread attention in the market, but also had a profound impact on upstream and downstream enterprises in the industrial chain. In this context, there has been a clear differentiation phenomenon in the market, and various enterprises have adjusted their strategies to cope with market changes.
On the one hand, leading enterprises, relying on their dominant position in the industry chain and strong bargaining power, have successfully transferred cost pressures to downstream customers. These enterprises have effectively alleviated cost pressures and maintained strong profitability by increasing prices and optimizing product structures. At the same time, leading enterprises have strengthened their technological research and innovation capabilities, increased product added value and market competitiveness, and further consolidated their position in the market.

On the other hand, midstream and downstream customers are facing even more severe challenges. Due to the sudden surge in price increases, some customers were unable to adjust their procurement strategies in a timely manner, resulting in a significant increase in costs. In order to cope with this dilemma, midstream and downstream customers have begun to adopt various strategies for adjustment. On the one hand, they strengthen communication and cooperation with suppliers, striving for more favorable prices and more flexible payment methods; On the other hand, they have also begun to search for alternatives or reduce their usage to reduce their dependence on silicon materials. In addition, some customers have also reduced cost pressure by strengthening internal management and improving production efficiency.
In the context of market differentiation, silicon material companies need to closely monitor market dynamics and changes in customer demand, and flexibly adjust production and sales strategies. On the one hand, enterprises should strengthen their technological research and innovation capabilities, improve product added value and market competitiveness; On the other hand, enterprises should also strengthen communication and cooperation with customers, understand their needs, and provide personalized solutions. At the same time, enterprises should strengthen their risk management awareness and establish a sound risk management mechanism to cope with the uncertainty and risk challenges of the future market.

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