According to official media reports, regulatory authorities have recently proposed to crack down on unfair competition and price manipulation in accordance with the law, while strengthening oversight and enforcement in key industries and sectors. This initiative aims to launch concentrated整治行动 across various fields, intensify efforts to combat counterfeit and substandard goods, and严厉打击恶意比价, false advertising, and predatory pricing等market irregularities. A number of major cases will be prosecuted, and typical examples will be exposed to severely punish违规行为 and foster a healthy competitive environment. For organic silicone enterprises caught in this situation, stepping out of "involution-style" competition and seeking competitiveness through innovation may be a wise choice.

Thursday's DMC Market Update

On Thursday, DMC prices showed a partial increase of around 100 yuan, but the overall market maintained a stable pattern, with downward pressures emerging. The spot market continued to operate smoothly, with mainstream quotations ranging from 11,300 to 12,700 yuan/ton. The driving factors behind the market dynamics are as follows:

1. Cost Constraints: The continuous decline in industrial silicon prices, combined with weak terminal demand, has led to enterprises passively following market fluctuations, resulting in poor cost transmission.
2. Cautious Sentiment Dominates: After prolonged losses from selling, enterprises face increased difficulty in profit control. Both purchasing and selling activities remain cautious, leading to low market transaction activity.
3. Supply Pressure Remains: Although some monomer manufacturers have attempted to raise prices, the overall industry still faces over-supply risks. Some enterprises continue their "price-for-volume" strategy while simultaneously advancing maintenance and production cuts.

Market Outlook

In the current supply and demand dual-weak scenario, the market lacks rebound momentum, and with accumulated bearish sentiment, DMC prices still face downward risks. It is expected that the organic silicone market will maintain a stable trend, but caution is needed against hidden price reductions under the dual pressures of costs and demand. Enterprises are advised to closely monitor industrial silicon price trends and terminal inventory replenishment movements to respond to market changes.

Expert Opinions

Industry analysts commented: "The downward pressure in the current organic silicone market primarily stems from cost constraints and supply-demand imbalances. Enterprises should avoid falling into 'involution-style' competition and instead enhance their competitiveness through technological innovation and differentiation strategies, enabling them to stand out in a complex market environment."

Conclusion

While DMC prices show a partial increase, the overall market faces downward pressure, and organic silicone enterprises need to be cautious about the risks posed by "involution-style" competition. Enhancing competitiveness through innovation may be the wise choice for enterprises to address the current market challenges. Additionally, enterprises should closely monitor changes in costs and terminal demand, adjusting strategies flexibly to navigate market fluctuations.