Industry Self-Regulation Drives Silicone Market Price Surge
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Propelled by the industry self-regulation mechanism, the silicone market has ushered in a critical turning point. Last week, monomer manufacturers reached a consensus on joint emission reduction, taking the initiative to cut supply to curb low-price disorderly competition and pull the industry out of the predicament of "losing more as sales increase". Subsequently, they raised the prices of DMC, raw rubber and other products by 2,000 yuan/ton across the board.
Amid expectations of tighter supply, market confidence has been boosted. Seventeen silicone adhesive enterprises collectively issued price increase notices with a range of 10%-20%. The price surge has been transmitted in an orderly manner from top to bottom, facilitating a virtuous cycle in the industrial chain and profit recovery for enterprises. Currently, the mainstream quotation of DMC stands at 13,100-13,300 yuan/ton, with enterprises receiving good orders. Most monomer manufacturers have scheduled orders until mid-to-late December. Meanwhile, some monomer plants in Shandong have temporarily suspended quotations for D4 over the weekend, further strengthening bullish sentiment.
By the end of this month, midstream and downstream enterprises have fully followed the price increase. Monomer manufacturers continue to strengthen supply regulation during this critical period, maintaining a steady upward trend in the market. As low-cost raw materials are gradually absorbed, if the December emission reduction consensus is implemented and coupled with a recovery in demand, this round of price recovery cycle is expected to extend until the end of the year.