DMC Changes!

After the middle of November, the order demand of major customers slowed down "significantly", and Vietnam was also hard to cope! According to foreign media, the initial PMI of Markit manufacturing industry in the United States in October released by S&P reached 49.9, a new low since June 2020, and fell below the dry boom line for the first time in two years. The PMI survey highlighted the increased risk of contraction of the US economy in the fourth quarter. Data released by the Eurozone showed that the initial manufacturing PMI in the Eurozone fell to 46.6 in October from 48.4 in September, lower than the expected 47.9, a 29 month low. The data added to market speculation that a euro zone recession seemed increasingly inevitable. South Korea's exports fell for the first time in two years in October, which is one of the clearest signs that the global economy is cooling. According to the survey report, some interviewees said that the threat of economic recession is growing, and factory orders are drying up, causing many customers to "significantly" slow down their order demand.

Last week, the media reported that a single unit of a major factory was shut down, and orders could not be delivered temporarily. After investigation, it was found that the slowing demand for downstream orders affected the clearing of inventory.

Optimists believe that the data in October confirmed that the prosperity of the silicone industry was being repaired for two reasons: on the one hand, the domestic silicone output in the second and third quarters had declined due to the epidemic, and the recent downstream growth was due to the post order delivery factor; On the other hand, according to the latest industrial data, some downstream silicone industries have indeed shown signs of recovery, and the orders of leading enterprises have maintained a growth rate of 33%, accelerating compared with the year-on-year level in September, for endogenous reasons. In general, in the short term, with the optimization of prevention and control policies, industrial production will welcome a recovery, and the demand for silicone will also welcome repair.

A mainstream enterprise in Jiangxi said that the current production situation of "organosilicon" products in China is good, the total supply is sufficient, and the market remains stable, which can fully meet the global consumption demand of various industries. At present, the production of silicone supply side in China is still growing, and the price is stabilizing. This year, we focus on the trial production and application promotion of new products.