Yesterday, some individual factories in Shandong region once again raised the DMC price by 300 yuan/ton to a new high of 13500 yuan/ton. This adjustment has significantly narrowed the price difference of DMC and further intensified market competition.
Recently, individual factories have adopted production reduction strategies to address the problem of market supply-demand imbalance. However, despite some tightening on the supply side, the demand side has remained relatively stable. This has led to a certain degree of resistance from mid to downstream enterprises when facing high priced offers.

However, with the gradual digestion of low-priced raw materials in the previous round and the steady increase in order volume, the motivation for mid to downstream enterprises to chase after price increases and stock up again is expected to be stimulated. This will further push up DMC prices and make market competition more intense.
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. However, individual factories that have the upper hand in the supply-demand game also face certain risks. If downstream demand is not released as scheduled or the production reduction plan is not implemented smoothly, DMC prices may experience a correction.
Therefore, individual factories need to closely monitor market dynamics and develop reasonable pricing strategies to cope with potential risks. At the same time, midstream and downstream enterprises should seize the opportunity to stock up to cope with possible price increases in the future.