DMC prices in the online shopping mall of Shandong-based factories opened at 14,200 yuan/mt for the first time and 13,900 yuan/mt for the second time this week, down 300 yuan/mt WoW. Offers from leading enterprises stood stable at 14,500 yuan/mt this week, while those from other DMC plants dropped. Currently, mainstream traded prices dipped to 14,000-14,200 yuan/mt.
SMM believes that DMC prices will mainly fluctuate at low level. With weakening of demand against cost support, any downside room of DMC price will be limited. Meanwhile, maintenance of some DMC plants will lower the operating rate, which will appropriately improve supply-demand fundamentals. In a word, DMC prices will largely swing at low level.