According to market observations, 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 indicates a change in the supply pattern of the silicone market.
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 have shown a certain degree of caution 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 adjust their pricing strategies in a timely manner based on market conditions and downstream orders to maintain market supply and demand balance.
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 freight will remain at a high level, providing market participants with a certain profit margin.
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. This has led to an overall increase in the price level of the raw rubber market, bringing more opportunities and challenges to market participants.