The February uptrend has come to an end! The traditional peak season for organic silicon in March is about to begin! Looking at this week, under the leadership of leading companies, except for a few individual factories in Shandong, the quotation for the entire line rose to 14000 yuan/ton on Monday, boosting downstream stocking sentiment. However, after the previous round of follow-up buying, the inventory levels of middle and downstream enterprises are currently high, and the stocking efforts have weakened. Looking specifically at the demand side, there are currently some macroeconomic favorable factors fermenting, and silicone rubber companies have issued price increase letters, further boosting the market.
Some companies have further stocked up after receiving orders and improving, but more companies are still constrained by the actual weakening demand side and are cautious in stocking up. Overall, the current market is mixed with positive and negative factors, and downstream stocking sentiment is somewhat differentiated. The overall performance of the consumer side is average, but individual factories still have plans to reduce production. Coupled with pre-sale order support, it is expected that DMC prices will remain firm in the short term. As of February 28th, the mainstream quotation for DMC is 13500-14300 yuan/ton, with a weekly increase of 500 yuan or 3.7%; The quotation for chemical grade 421 # metal silicon on the raw material side is 10950-12450 yuan/ton, with a partial price reduction of 100-200 yuan; The price of chloromethane in Shandong region is 2100 yuan/ton, down 300 yuan per week.
In terms of operating rate: Due to the strong mentality of reducing production and maintaining price among individual factories, most of them are currently maintaining a negative load reduction state. It is also understood that some individual factories in East China, North China and other regions have maintenance plans in March, and most other enterprises will also enter into regular maintenance rotation. It is expected that the overall operating rate will remain below 70% in the future.