Organic Silicon Mall News - June 7th: Callback 200! After several days of downtrend bombing, the buying sentiment in the middle and lower reaches of the market has slightly rebounded. Most enterprises still rely on hard demand and have not formed a centralized stocking trend. After all, terminal demand continues to be weak, without the support of orders, and even at low prices, enterprises are unwilling to easily stock up at the risk of accumulating inventory. Moreover, the rebound is still elusive. In the current environment, cash flow is crucial for many enterprises!

Recently, the price of industrial silicon has stopped falling and stabilized. Yesterday, the price of 421 # metal silicon remained at 14400~15500 yuan/ton, which is not friendly for some individual factories with high costs. It is expected that the ability to keep up with the decline will not be strong in the future, and the production reduction situation will continue. Yesterday, the DMC quotation of the leading factory remained stable at 14200 yuan/ton, while some individual factories in Shandong retreated by 200 yuan. DMC returned to its 14000 quotation, maintaining a clear advantage with a small price difference. Other individual factories, under the impact of low prices, partially fell by 200 to 300 yuan. Overall, the mainstream price of DMC ranges from 14000 to 14300 yuan/ton, and it will maintain a stable and dark decline this week.

Macroscopically, the "2023 Key Petrochemical Product Capacity Warning Report" released by the Petrochemical Federation this year once again pointed out that the entire industry is still in the peak period of capacity investment, and the pressure of supply and demand contradictions for some products is still significant. China's chemical industry is still at the middle and low end of the international division of labor industry chain and value chain, and some old and persistent diseases and new problems still plague the development of the industry, leading to low safety guarantee capabilities in some areas of the industry chain. Compared to previous years, the significance of the warning issued by this year's Report lies in the complexity of the current international situation and the increase in domestic uncertainties. Therefore, the issue of structural surplus this year cannot be ignored. Overall, under the dual measures of reducing burden and removing inventory, the supply-demand relationship has eased to some extent, but it has not yet reached the node of supply-demand balance. In a slow paced game, it is not surprising that leading factories want to start accelerating construction. However, in the continuous weak demand, not all downstream enterprises may buy, and prices follow but profits do not increase. In the short term, there is still a game between low demand and increased production. The low trading volume of raw rubber is still acceptable, and it is expected that some manufacturers may have slight upward repair operations.