Recently, prices in the organic silicon industry chain have generally risen from DMC to silicone adhesive, and the market is booming. At the end of February, under the leadership of leading companies, except for a few individual factories in Shandong, the price of the entire line jumped to 14000 yuan/ton, which undoubtedly stimulated the stocking enthusiasm of downstream enterprises. However, after the previous round of follow-up purchases, the inventory levels of middle and downstream enterprises have been at a high level, and the motivation to stock up again has significantly weakened.
At the macro level, favorable factors are gradually fermenting, injecting confidence into the market. Silicone adhesive companies have issued price increase letters, further igniting market enthusiasm. Driven by the recovery of orders, some companies have started to increase their inventory, but
more companies have chosen to act cautiously due to the actual weak performance of the demand side. Currently, the market is mixed with positive and negative factors, and downstream stocking sentiment is showing differentiation, resulting in an overall mediocre performance on the consumer side.
It is worth noting that individual factories have a strong willingness to reduce production and maintain prices. Most individual factories maintain low load operation, and some individual factories in East China, North China and other regions have maintenance plans in March. Supported by pre-sale orders and production reduction plans, DMC prices are expected to remain firm in the short term. As of February 28th, the mainstream quotation range for DMC is 13500-14300 yuan/ton, with a weekly increase of 3.7%.
Looking ahead to March, the traditional peak season for organic silicon is about to begin, and the market may usher in new opportunities and challenges. In the changing supply-demand landscape, enterprises need to closely monitor market dynamics and flexibly adjust their strategies to cope with future uncertainties.