DMC Market Update: Prices Rise Amid Tight Supply and Cautious Sentiment

1. Market Overview

As of the end of last week, the domestic DMC market recorded a noticeable upward movement in prices, continuing the rebound trend observed earlier. The overall pricing environment strengthened, with market quotations and negotiation focus shifting higher. This upward adjustment was largely supported by elevated production costs and a solid base of pre-sale orders already secured by producers.

Despite the firm pricing trend, actual trading activity remained relatively moderate. Transactions were mainly concentrated in small-volume, scattered orders, reflecting a cautious approach among buyers. Many downstream participants refrained from large-scale procurement, preferring to observe market developments before committing to new purchases.

2. Key Market Drivers

● Supply Dynamics: The ongoing delivery of pre-sale orders has effectively tightened the availability of spot goods in the short term. As a result, immediate supply in the market remains constrained, providing a certain level of support to prices.

● Market Sentiment: Producers are showing a strong willingness to maintain firm pricing, supported by cost pressure and stable order books. In contrast, downstream buyers have become increasingly cautious following the recent price increase, with a stronger tendency to wait and see.

● Cost Factors: Although overall market inventories remain at relatively high levels, the mismatch between supplier expectations and downstream acceptance has widened. This has led to slower inventory turnover and weaker transaction momentum. According to market feedback, a majority of industry participants expect the upstream industrial silicon market to continue fluctuating at a relatively weak level in the near term, which may influence future cost trends.

3. Market Outlook

Looking ahead, after the recent rebound in prices, downstream buyers are expected to maintain a cautious stance, focusing primarily on digesting existing inventories rather than actively replenishing stock. On the supply side, supported by pre-sale order deliveries, producers are likely to keep inventory levels relatively low, which will help stabilize the market.

Overall, market participants widely anticipate that in the short term, the DMC market may experience a situation where prices remain firm but trading activity stays limited. The market is expected to operate within a stable range, with no significant fluctuations in the near term, unless new demand drivers or cost changes emerge to shift the current balance.