This week, the domestic silicone market experienced a strong rebound. A large factory in Shandong has once again raised the DMC ex factory price, and after adding shipping costs, the actual delivered price has further narrowed the gap with mainstream quotes in East and Central China. Several first tier individual enterprises followed closely and collectively raised their product quotations, DMC、 The prices of major categories such as silicone oil have risen across the board.

Industry analysis indicates that this round of price increases is mainly based on expectations of improved supply and demand patterns. On the demand side, the demand for downstream photovoltaic, new energy and other fields has rebounded, coupled with the traditional peak season stocking demand, driving the growth of organic silicon consumption. On the supply side, some companies' early load reduction operations led to low inventory levels, and the industry reduced production and tightened maintenance. Last week, the DMC production in the industry dropped significantly. In addition, the stabilization of raw material prices also provides strong support for the price of organic silicon.
With the rebound in prices, the willingness of mid to downstream demand side enterprises to receive goods remains cautious, mainly consuming low-priced inventory in the early stage. However, according to calculations, the existing low-priced raw material inventory downstream is expected to bottom out within 2-3 weeks. If production cuts continue, it may trigger a concentrated replenishment market in the middle and lower reaches in mid March.