Silicone market is surging, and the price is falling again

1、 Price trend

According to the monitoring data of the business association, as of March 3, the average market price of organosilicon DMC in several mainstream areas monitored by the data was 18066 yuan / ton, down 933 yuan / ton or 4.91% compared with the beginning of March.

2、 Market analysis

Product: since the beginning of March, the overall weakness of organosilicon DMC market has been running low. With the slowdown of the epidemic, the operating rate of downstream enterprises has been steadily rising, and the terminal resumption has been carried out recently. However, downstream enterprises have been cautious in the preparation of upstream raw materials. Although the operating rate of monomer factories has been controlled all the time, the current operating rate is about 60%, but since last week, the quotations of some manufacturers have been reduced by 300-1000 yuan / ton No, the market price stabilization mentality has basically collapsed, and manufacturers have begun to show a low price bidding mode. This week, the quotation of organosilicon DMC is generally reduced by about 500 yuan / ton again. At present, the mainstream quotation of DMC is around 17800-18500 yuan / ton, and the lowest quotation has reached 17000 yuan / ton (net water spot exchange). In order to stimulate the shipment, the actual transactions have been explored one after another, and the actual transactions of some large households yield more profits. However, the downstream stock up is not very active, most of them are cautious to wait and see, and the terminal market has not been fully opened. At present, the overall operating rate of single plant has declined again. During the shutdown of Tangshan Sanyou, Hubei Xingfa and Shandong Jinling units, it is understood that Zhejiang Hesheng will also stop for maintenance this weekend, and the operating rate of most other single plants is about 60%.

Industry chain: at present, the terminal demand has not been fully released, the demand for silicone oil and 107 rubber products is still low, the market has not fully recovered, and it is unable to stimulate the expansion of 107 rubber trading volume in a short term. At present, the quotation of 107 rubber market in China has been reduced sporadically, the resumption of terminal work is slow, and the market as a whole is weak. The quotation of raw rubber market is stable and slightly reduced. At present, the market just needs to purchase. At present, the silicone oil market maintains stable operation. With the orderly recovery of logistics, the market gradually recovers. Under the weakening of cost support, the downstream risk averse procurement is on demand.

3、 Future forecast

According to analysts of the business club, it is expected that in the near future, in order to stimulate the delivery of goods, the quotation adjustment may be more frequent, and the downstream manufacturers may also be ready to stock up at any time while waiting. The market also needs to pay more attention to the downstream demand and the adjustment of the manufacturers’ commencement.