2026-01-07 10:25:04

Recently, an interesting phenomenon has been observed. The prices of upstream raw materials and resources have been continuously rising, but this is often not good news for midstream companies. Why? Because cost pressures will accumulate for the midstream, unless they can pass these costs downstream to consumers.

The current issue is that the performance of mid- and downstream sectors is indeed average. Prices are not rising, and profit margins are being squeezed. This actually reflects a change in market structure—the game between upstream and downstream has been ongoing, but the balance of power is adjusting.

This is very important: market logic is never fixed or unchanging. Those trading strategies that once worked may become invalid in the next phase. Logic evolves gradually; even seemingly small changes, when accumulated to a certain extent, can lead to a qualitative shift. Learning to recognize these logical shifts is much smarter than blindly sticking to a set of rules.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

22 Likes

Reward
22
5
Repost
Share

Comment

0/400

NonFungibleDegen

· 01-08 18:34

yo this is lowkey the supply chain version of watching your portfolio get liquidated... midstream traders are just getting squeezed from both sides and nobody's got the alpha to pass costs forward. probably nothing tho ser

Reply0

OPsychology

· 01-07 10:50

The midstream is really too difficult, caught between upstream and downstream Market rules are constantly changing, sticking to old routines will only leave me behind That's why continuous learning is essential; the idea of making money while lying down doesn't exist The point about logical evolution is spot on—micro accumulation transforming into macro shifts is exactly how it works If the midstream can't transmit cost pressures, it can only bear the burden itself, no wonder it's tough In simple terms, it's a power game—weak parties are always the most miserable A qualitative change isn't achieved overnight, but once it happens, it alters the entire game rules When upstream profits are great, midstream becomes a sandwich, and downstream can't afford to keep consuming, the ecosystem collapses Identifying the logical turning points is truly an extremely valuable skill

View OriginalReply0

NFTDreamer

· 01-07 10:48

I see, the midstream is really caught in a tight spot. The midstream is indeed being squeezed, what should we do? To put it simply, the market is reshuffling, and old routines should be discarded. The logic is quietly shifting gears; if you're not paying attention, you'll be left behind. Cost transfer sounds easy to say, but actually implementing it... well, never mind. A qualitative change occurs through tiny accumulations, and upon reflection, it's terrifying. That's why we can't rigidly stick to a single logic.

View OriginalReply0

GasFeeCrier

· 01-07 10:36

Midstream companies are really being squeezed from all sides now, with rising costs that can't be passed on, and profits evaporating directly. The failure of logic is well explained; many of my previous trading rules now seem like jokes. The biggest pain is that prices can't go up, as the consumer side is too weak—who dares to raise prices? That's why it's essential to constantly adjust strategies; sticking to one approach will eventually lead to failure. Upstream profits are too high, midstream companies are the most exhausted, and downstream is being pressured to lower prices—a perfect scissors gap. The market is evolving, and if your thinking doesn't shift accordingly, you'll just be waiting to be eliminated. Midstream days are tougher than anyone else's; costs above can't be lowered, and prices below can't be raised. It's really about reconfiguring power—whoever controls the pricing power makes money. Unfortunately, midstream companies are caught between two forces. The logic that small changes accumulate into qualitative shifts is correct; many people haven't realized this. With such intense cost pressure, midstream companies can only slowly be eroded unless they find new profit points.

View OriginalReply0

GweiTooHigh

· 01-07 10:25

Being caught in the middle really is tough, with costs rising and consumers not buying it Passing on prices is easier to talk about than to do; who still willingly takes the hit now? You really need to be careful with logical shifts; last year's tricks backfired this year The upstream and downstream battles have intensified, and middlemen's days will only get harder Market rules are constantly changing, and those stubbornly sticking to old ideas should wake up The sandwich cookie model is coming to an end, and this trend is quite interesting

View OriginalReply0