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DMC Market: Spot Prices Rise Strongly, Likely to Stay Strong in Short Term

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Current DMC spot prices are rising strongly. Leading manufacturers have raised prices at the opening, with quotations reaching 16,400 yuan/ton after two rounds of increases, while other monomer manufacturers mostly suspend quotations or refrain from quoting for the time being. On the supply side, a monomer factory in North China is operating at full capacity, and an Inner Mongolia monomer factory is shut down for maintenance, with a restart expected in mid-March. Driven by price increases from leading manufacturers, other enterprises have a strong willingness to raise prices, and the upward trend may continue when quotations resume. On the demand side, driven by the "buy on rising prices, not falling" mentality, transaction sentiment is positive, with high-temperature rubber market demand performing well. Under the support of monomer factories' price, downstream restocking is expected to be promoted. On the cost side, metal silicon prices have fallen slightly, while methyl chloride and methanol prices remain stable, resulting in little change in the cost side. Overall, the domestic DMC market has both positive and negative factors, and is expected to remain strong in the short term. In terms of the basic market, the Shanghai Composite Index broke through 3,000 points to 3,015.17, up 1.94%. Hongda New Materials closed up 10%, and Hesheng Silicon Industry closed up 8.63%.

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