Recently, domestic DMC (Dimethyl Cyclic Siloxane Mixture) market prices have slightly declined, with the current market average price at 11,450 RMB/ton, down by 300 RMB from the previous trading day. Under the pressure of inventory reduction, price competition among manufacturers has intensified, while downstream bargaining sentiment has continuously increased, leading to a shift in today's actual transaction prices towards the lower end of the price range.

Market Analysis

1. Prices at Historical Lows: Current DMC prices have reached historical lows over the past decade, with the industry generally operating at a loss. Some downstream companies have started to adopt a phased low-price procurement strategy to reduce costs, resulting in a marginal improvement in market trading activity.
2. Raw Material Prices at Low Levels: As an important raw material for DMC, metallic silicon prices have been oscillating at low levels recently, with a decrease of 100 RMB/ton, further increasing cost pressures on DMC manufacturers.
3. Varying Inventory Levels in Supply: Inventory levels among manufacturers vary, with strong willingness to reduce inventories, and market supply pressure remains present.
4. Downstream Bargaining Sentiment Continues: Downstream companies continue to exhibit bargaining sentiment, but stockpiling intentions at lower prices have strengthened, with some companies beginning to make phased purchases at current low levels.

Expert Opinions

Industry analysts comment: “The current DMC market is at a price bottom, with manufacturers facing significant inventory pressure and price competition. Although downstream bargaining sentiment persists, the intention of some companies to stockpile at lower prices has strengthened, and market trading activity is expected to improve in the short term.”

Future Market Outlook

Given that prices are currently at historical lows and the industry is generally operating at a loss, it is expected that the DMC market will continue to be influenced by inventory pressure and price competition in the short term. However, with the strengthening of downstream stockpiling intentions, market trading activity is likely to gradually improve.