SMM believes DMC prices to decline amid sluggish demand and increased supply

At the beginning of this week, online DMC prices of enterprises in Shandong were 13,400 yuan/mt, holding stable WoW. Leading producers kept offers stable at 13,900 yuan/mt. The quotations of other domestic producers were also stable this week, with the current mainstream transaction prices at 13,400-13,600 yuan/mt.

SMM believes DMC prices to decline. Recently, domestic demand has been sluggish, while supply has increased as the newly commissioned DMC capacity was gradually released. As domestic demand continued to weaken with the arrival of the off-season and the supply side is expected to be under pressure, DMC prices are likely to decline.