The price of DMC in the online mall of DMC enterprises in Shandong decreased this week. The opening price this week was 13200 yuan/ton, down 300 yuan/ton. This week, the leading enterprises’ DMC quotations remained stable at 14,000 yuan/ton. The DMC quotations of other companies were 13600-14000 yuan/ton, and the mainstream price decreased by about 100 yuan/ton compared with last week to 13600 yuan/ton.
The price of DMC dropped slightly as DMC plants in Shandong lowered prices. The transaction price this week dropped to 13,200 yuan/ton, down 300 yuan/ton from the beginning of the week. In addition to DMC, the prices of 107 silicone rubber and 110 methyl vinyl silicone rubber of leading enterprises dropped again this week. The price of 107 silicone rubber was reduced by 300 yuan/ton to 13,700 yuan/ton. The price of 110 methyl vinyl silicone rubber was reduced by 400 yuan/ton to 14,300 yuan/ton.
SMM learned that the main reason for the price drop was due to orders for May. Near the end of April, most downstream companies had basically fully consumed the raw materials purchased in mid-March. Recently, large downstream manufacturers planned to replenish their stocks. Therefore, the prices of leading companies began to decline this week. In addition, costs have started to decline recently, and the prices of raw materials such as industrial silicon have dropped slightly. Cost support has weakened.
On the supply side, new production capacity has begun to increase production recently. The 200,000 tons of DMC production capacity in North China has begun to be released recently. 200,000 tons of DMC capacity was put into trial production in April and another 200,000 tons of capacity will be put into production in May. The pressure on the supply side has increased. Although 420,000 tons of production capacity was overhauled in April, there is still an oversupply at present.
SMM believes that DMC prices will be mainly stable in the near future. There are plans to replenish inventory in the near future. It is expected that the subsequent market transaction volume will increase slightly. The recent price decline of raw materials such as industrial silicon has begun to slow down, providing certain support in terms of cost. In addition, there has been an increase in maintenance at suppliers recently. Therefore, it is expected that the DMC price will be mainly weak and stable.
