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Will DMC rise again?

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The domestic silicone market operated steadily on Tuesday. The mainstream spot quotes for DMC remained stable in the range of 12,300-12,700 yuan/ton, with spot offers edging up by 100 yuan/ton. The current market shows the following main characteristics:
  1. The supply side continues to be tight. Most monomer enterprises still maintain closed quotation operations, with production schedules mainly focusing on fulfilling previous orders. Major manufacturers in Shandong have adopted the auction sales mode, though market feedback indicates that transaction activity is average.
  2. The demand side is cautious. Some monomer plants in Zhejiang may restart the limited order acceptance strategy today due to reduced pre-sale orders and price competition pressure from imported products. Downstream enterprises maintain a rigid demand rhythm in procurement, generally adopting the method of purchasing in batches at low prices.
  3. In terms of market sentiment, the game between buyers and sellers is obvious, and most industry players adopt a wait-and-see attitude. It is worth noting that low-cost imported sources have had a certain impact on the domestic market price system, leading to differentiated sales strategies among some manufacturers.

Focus should be paid to the progress of enterprise inventory digestion, the recovery of downstream demand, and the continuous impact of imported product price trends on the market in the future.

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