DMC Prices Hold at 14,700–15,000 RMB/Ton; 35% Production Cu
Keywords: DMC, price stability, tight supply, emission reduction, Hongye Silicone
Summary: Domestic DMC prices stabilized at 14,700–15,000 RMB/ton today; the 35% emission-reduction production cut remains in effect through August, keeping supply tight.
Details:
On May 12, DMC mainstream offers held steady at 14,700–15,000 RMB/ton, unchanged from yesterday but up 200 RMB/ton week-on-week. Operating rates at major facilities in Shandong, Jiangsu, and Zhejiang remain at 65%–70% as the 35% capacity reduction (mandated by environmental policies) was extended from June to August. Spot cargo availability is extremely limited, with most producers fully booked through mid-July. East China port inventories hit a 7-month low, and import arrivals dropped 20% month-on-month, further tightening supply. Market participants expect DMC to stay above 14,500 RMB/ton until late August. Hongye Silicone, with secured long-term contracts, maintains stable production despite spot market volatility.
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