DMC Prices Will Surge Again Tomorrow as Enterprises' Joint Production Cuts Hit a New High! [SMM Analysis]

SMM March 18 News: SMM learned that today, monomer enterprises jointly discussed future price trends. Some enterprises revealed that tomorrow, monomer enterprises across the industry will raise DMC and some product quotes by 500 yuan/mt. Additionally, there is a plan to further increase prices by another 500 yuan/mt in April on top of this adjustment. This plan has been verified by reliable sources, and the industry's sentiment to stand firm on quotes is expected to rise further. Along with the price increase, the intensity of the joint production cuts by monomer enterprises will also escalate. The industry has preliminarily determined that this round of production cuts will affect 40% of the industry's capacity!

Figure Price Trends of Silicone Products

Under the pressure of previous price declines, this round of joint production cuts by domestic monomer enterprises has reached a new high. Monomer enterprises are showing a strong sentiment to stand firm on quotes. Domestic top-tier enterprises are planning to cut production. Before this joint discussion, the industry's operating rate was maintained at around 70%. After today, the subsequent operating rate of monomer enterprises is expected to drop to around 60%, and the monthly supply is expected to fall below 180,000 mt. Based on the current total domestic demand, the trend of undersupply is beginning to emerge.

Regarding future price forecasts, monomer enterprises have confirmed that tomorrow's market opening quotes will increase by 500 yuan/mt, and prices are expected to continue rising further!