Recently, monomer factories in the silicone market have adopted production reduction strategies to address the problem of market supply-demand imbalance. The implementation effect of this strategy is significant. Last week, the production of DMC has significantly decreased to 39800 tons, a decrease of 10000 tons compared to the same period in January.

The facilities in Shandong, North China, and Central China have all maintained reduced load operation, while the facilities in Southwest and Northwest China have also been included in the production reduction plan. If the production reduction plans in these regions can be smoothly implemented, the shortage of spot goods on the supply side will further intensify.
While the supply side tightens, the demand side remains relatively stable. After observing for a period of time, midstream and downstream enterprises began to steadily increase their order volume with the gradual digestion of low-priced raw materials in the previous round. This is expected to stimulate their motivation to chase up prices and stock up again, thereby further pushing up the market price of organic silicon.
On the individual factory side, strict supply control is implemented, and price strategies are flexibly adjusted based on downstream orders. They plan to further adjust prices at the appropriate time to stimulate market stocking sentiment. From the current market game, individual factories clearly have the upper hand.
In the short term, the silicone market is expected to maintain a stable operating trend. However, with the continuous changes in market supply and demand and the gradual implementation of production reduction plans, there is still a risk of price fluctuations. Therefore, enterprises need to closely monitor market trends and develop reasonable procurement and sales strategies.