With the arrival of Wednesday, the silicone market is once again experiencing a wave of price increases. Yesterday, some individual factories in Shandong raised the DMC price by 300 yuan/ton, bringing the DMC quotation to 13500 yuan/ton. This price adjustment not only reflects the cost pressure of individual factories, but also reflects the market's expectation of tight supply.

Under the influence of the single plant production reduction strategy, DMC's output significantly decreased last week, decreasing by 10000 tons compared to the same period in January. This production reduction measure not only affects the supply capacity of individual factories, but also exacerbates the supply tension in the market. At present, facilities in Shandong, North China, and Central China are operating at reduced loads, while facilities in Southwest and Northwest China are also planning to reduce production.
From the market response, midstream and downstream enterprises have shown a certain degree of resistance when facing high priced offers. However, with the gradual digestion of low-priced raw materials in the previous round, the order volume has begun to steadily increase, and the market is expected to once again stimulate the momentum of chasing up prices and stocking up. Individual factories strictly control supply and adjust pricing strategies in a timely manner based on market conditions and downstream orders to stimulate market stocking sentiment.
In the current supply-demand game, individual factories still have the upper hand. Due to the implementation of the production reduction strategy, the supply side spot market is tightening, which is expected to maintain stable operation of DMC prices in the short term. The mainstream quotation including freight will remain between 14000-14300 yuan/ton.
At the same time, the raw rubber market is also showing an upward trend. Leading rubber companies were the first to raise prices, followed closely by other rubber companies. Against the backdrop of reduced production in upstream monomer units, the raw rubber unit has also implemented corresponding reduction layouts. The stable growth of terminal silicon product orders provides strong support for the raw rubber market.