Recently, the silicone market has ushered in a new round of price hikes. On Wednesday, some individual factories in Shandong once again raised the DMC price by 300 yuan/ton to 13500 yuan/ton, which quickly attracted widespread attention in the market. With the addition of shipping costs, the quotations of DMC and other individual factories gradually converge, and the price difference significantly narrows.
Against the backdrop of coordinated production reduction by individual factories, DMC production dropped significantly to 39800 tons last week, a decrease of 10000 tons compared to the same period in January. Plants in Shandong, North China, and Central China have been operating at reduced loads, while Southwest and Northwest regions have also joined the ranks of reducing production. This series of measures has led to a tightening of spot prices on the supply side and an increasingly tense market atmosphere.

Faced with the trend of price increases, middle and downstream enterprises initially adopt a wait-and-see attitude and are resistant to accepting high priced offers. However, with the gradual digestion of low-priced raw materials in the previous round, the order volume has steadily increased, and enterprises have once again ignited their enthusiasm for chasing price increases and stocking up. Individual factories strictly control supply and flexibly adjust prices based on downstream orders, in order to further stimulate market stocking.
At the same time, the raw rubber market is also showing a strong upward trend. This week, leading rubber companies rose 500 yuan/ton, with a quoted price of 15000 yuan/ton, and other rubber companies followed suit and rose synchronously. Under the influence of orderly production reduction in upstream monomer units, the raw rubber unit has also implemented a production reduction layout. The orders for terminal silicon products are stable, and demand is steadily improving. The bullish sentiment of rubber mixing enterprises towards raw rubber is high.
According to statistics, as of February 25th, the mainstream price of raw rubber has reached 15000-15200 yuan/ton, and the average price in February has risen by more than 1000 yuan compared to the previous month, with an increase of 8.7%. In the short term, although the competition among rubber mixing enterprises is fierce, they have stable orders and maintain a stock of raw rubber for essential needs. Combined with previous undelivered orders, there is currently no pressure on the shipment of raw rubber, and there is a strong willingness to raise prices.