On Wednesday, the silicone market once again experienced a wave of price increases. According to market news, some individual factories in Shandong raised the DMC price by 300 yuan/ton yesterday, bringing the DMC quotation to 13500 yuan/ton. This price adjustment not only reflects the cost pressure of individual factories, but also exacerbates the supply tension in the 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 makes the spot supply on the supply side more tight. At present, devices in multiple regions are operating at reduced loads, further exacerbating the supply shortage in the market.

Faced with a market situation where supply exceeds demand, midstream and downstream enterprises show 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 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 to maintain market supply-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. At the same time, the price increase behavior of leading rubber enterprises has also driven price adjustments of other rubber enterprises.