With weakened cost support and quiet downstream procurement, DMC prices may continue to decline

At the beginning of the week, online DMC prices of enterprises in Shandong were 13,300 yuan/mt, down 200 yuan/mt WoW, and the bidding price this week was 13,100 yuan/mt. Leading producers kept DMC quotations stable at 13,900 yuan/mt, but there were no transactions done at this price. Other domestic producers also kept DMC quotations stable but with transaction prices declining. The current mainstream transaction prices in the market are 13,400-13,500 yuan/mt.

SMM believes that DMC prices will continue to decline. Recently, the cost has dropped rapidly by 400 yuan/mt WoW, with #421 silicon metal prices falling sharply and methyl chloride prices dropping rapidly. The cost support for DMC prices weakened. Additionally, during the traditional off-season for silicone demand, after downstream producers restocked their inventories earlier, downstream procurement was relatively quiet in July. To secure orders, DMC prices are expected to further decline.