On Wednesday, there was news of another price increase in the silicone market. According to market insiders, some individual factories in Shandong raised the price of DMC by 300 yuan/ton yesterday, bringing the quoted price of DMC to 13500 yuan/ton. This price adjustment not only reflects the cost pressure of individual factories, but also reflects the market's concern about supply shortages.
Under the influence of the single plant production reduction strategy, DMC's output significantly decreased last week. This production reduction measure not only affects the supply capacity of individual factories, but also exacerbates the supply tension in the market. At present, devices in multiple regions are operating at reduced loads, making the supply side's spot market even more tight.

Faced with a market situation where supply exceeds demand, midstream and downstream enterprises show some hesitation when accepting high priced orders. However, with the gradual digestion of low-priced raw materials in the previous round, the order volume began to steadily increase. Meanwhile, due to tight supply, the market is expected to once again stimulate the drive to chase after price increases and stock up. Individual factories strictly control supply and adjust pricing strategies in a timely manner based on market conditions and downstream orders.
In the current supply-demand game, individual factories still have the upper hand. Due to tight supply, DMC prices are expected to remain stable in the short term. The mainstream price including shipping will remain at a relatively high level.
In addition, the raw rubber market is also showing an upward trend. 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. Leading rubber companies were the first to raise prices, followed closely by other rubber companies. This has led to an overall increase in the price level of the raw rubber market.