As the year-end approaches, the competition in the silicone market intensifies, and DMC prices may remain stable in the short term-Iota

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News > Dynamic industry > As the year-end approaches, the competition in the silicone market intensifies, and DMC prices may remain stable in the short term

As the year-end approaches, the competition in the silicone market intensifies, and DMC prices may remain stable in the short term

Entering mid to late December, as the year-end approaches, the bidding game in the silicone industry becomes increasingly fierce as the market gradually enters the year-end stage. From the market situation, large industrial silicon production enterprises in the northwest region are gradually implementing production reduction measures, but signs of price increases have not yet emerged. The wait-and-see sentiment of midstream and downstream enterprises deepens, and bearish expectations for future trends are gradually accumulating in the market. The overall enthusiasm for inquiries is low, and trading volume continues to be limited. In this situation, individual factories also appear very cautious about price adjustments. Recently, although some manufacturers in Shandong briefly quoted 12600 yuan/ton over the weekend, the price immediately returned to a closed state. At present, the overall single DMC quotation continues to remain within the range of 12800~13500 yuan/ton.
In the short term, the current market is in a relatively stagnant situation. Due to the relatively sufficient inventory in the hands of downstream enterprises and weak willingness to replenish inventory, coupled with weak terminal demand, the situation of difficult shipments has further intensified, resulting in a generally low willingness of all parties to accept high-level orders. Although individual factories may try to raise prices, if the market reaction after the price increase is poor, the price is likely to face the risk of a correction. Therefore, it is expected that the DMC market will continue to operate steadily this week and there will be no significant fluctuations in the short term.
On the demand side, recent policy developments have also had a certain impact on the market. On the morning of December 16th, the State Council Information Office held a press conference on the operation of the national economy in November 2024. At the meeting, Fu Linghui, spokesperson for the National Bureau of Statistics, stated that the incremental policy in the real estate market has achieved positive results in the past few months, especially since October, the real estate market has gradually shown a trend of recovery. According to PMI survey data, the expected index of the real estate market in November has rebounded by 1.1 percentage points compared to the previous month, indicating active market transactions and an improvement in expectations. However, the current real estate market is still in the stage of exchanging price for quantity. Whether it is the new or second-hand housing market, price pressure still exists, and the situation of losses has not been completely improved.
The market orders in the field of construction adhesive remain stable, but the difficulties faced by midstream and downstream enterprises are still significant. The order volume is at a low level, and the pace of confidence recovery is relatively slow. In this environment, against the backdrop of loose DMC supply this week, midstream and downstream enterprises are more inclined to purchase at low prices, and the bidding pressure in the market is gradually shifting to individual manufacturers. Currently, although upstream and downstream enterprises are clearing inventory, they are mostly preparing for the layout after the Spring Festival. Therefore, the game atmosphere in the market is relatively calm, and transactions still mainly revolve around rigid demand.
As the end of the year approaches, the wave of market closures and holidays for midstream and downstream enterprises is gradually approaching, and these weeks have become a critical period for pre holiday transactions. At this time, the driving effect of domestic and foreign consumption has not yet emerged, and market confidence remains fragile. Short term price fluctuations may be affected by pre holiday preparations and inventory clearance. It is expected that the market's game will reach its climax at this stage, and the specific trend still needs to observe further changes in the strategies and policies of all parties.

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