DMC prices are expected to continue to decline to encourage downstream companies to place orders

At the beginning of the week, online DMC prices of enterprises in Shandong were 13,200 yuan/mt, and the bidding prices were 13,000 yuan/mt. The transaction prices were 12,900 yuan/mt, down 100 yuan/mt WoW. Leading producers kept DMC quotations stable at 13,900 yuan/mt, with no transactions at this price. Other producers slightly lowered DMC quotations, and transaction prices also fell. The current mainstream transaction prices in the market are 13,200-13,300 yuan/mt, down 200 yuan/mt WoW.

SMM believes that DMC prices will continue to fall. Recently, as silicon metal prices have continuously declined, the cost support has weakened. Additionally, DMC plants had poor orders, leading to price reductions to secure orders in advance, but transactions remained sluggish. Downstream companies showed a strong bearish sentiment. Therefore, to encourage downstream companies to place orders, DMC prices are expected to continue to decline.