End Demand Awaits Improvement; Silicone Market to Remain Stable Initially, with DMC Poised for a Supplementary Rally
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Currently, the silicone market maintains a strong operating trend. From the market perspective, downstream enterprises have shown relatively active willingness to buy on the uptrend recently, and monomer manufacturers' advance sales orders have continued to improve. However, there has been no substantial recovery in the end-consumer market, so downstream enterprises remain cautious about chasing the price increase, and their inventory replenishment has returned to being driven by rigid demand.
On the part of monomer manufacturers, the advance sales order backlog is optimistic, and current quotations remain firm. In addition, some monomer manufacturers have started preparing for production load reduction at the end of the month, resulting in controlled order intake and a slight shortage in short-term market supply. This situation has promoted downstream enterprises to accelerate their pre-holiday inventory replenishment pace, providing upward support for DMC prices.
Overall, it is expected that the silicone market will maintain a stable operating pattern this week, and the probability of a subsequent supplementary increase in DMC prices is relatively high.