In the next 90 days, trade between China and the United States will significantly increase. As negotiators from both sides strive to achieve further progress in negotiations, companies will compete to increase their inventory reserves, especially as US importers may launch a new wave of panic buying. China's exports will explode, and being the first to do so will become a keyword. DMC has risen, and the market atmosphere has rebounded. Yesterday, several domestic silicone monomer factories raised their DMC prices by 50-100 yuan/ton, to 11300-12700 yuan/ton. This week, there has been an increase in inquiries and transaction activity in the spot market, with a slight increase in contract orders from major manufacturers in May. As small and medium-sized manufacturers enter the market to replenish inventory, inventory transfer from individual enterprises has eased pressure. Manufacturers in Zhejiang and Hubei provinces have adopted a strategy of closing or limiting orders, which has led to a slight shift in the focus of local transaction prices. Although the bearish sentiment in downstream markets has slowed down, the sustained rebound in prices remains neutral, maintaining rigid demand. The subsequent trend needs to pay attention to changes in the supply and demand pattern.
Industry experts believe that in May, the silicone market continued to experience oversupply, and the current supply-demand structure has slightly improved. In April, the price of organic silicon continued to be low, and most domestic organic silicon enterprises were already in a loss making state. Several factories in Shandong and Inner Mongolia have stopped production for maintenance. Research shows that there is ample supply of organic silicon both domestically and internationally this year. Currently, new downstream production capacity for organic silicon is still being deployed, and the overall scale of capacity contraction is relatively limited. Mr. Wu stated that there has been an increase in supply side maintenance and production reduction recently, resulting in a decline in operating capacity and operating rate. The total inventory of individual enterprises has been depleted for three consecutive weeks. The increase in maintenance and production reduction has led to a tightening of spot liquidity, an expansion of spot trading volume in mainstream consumer areas, and a significant increase in bottom support for organic silicon prices. Looking ahead to the future, experts believe that the short-term inventory depletion combined with the strengthening of spot prices support the low rebound of organic silicon contract prices. At the same time, the uncertainty of industrial policies has led to a bullish market sentiment, and the price center may continue to shift upward. Overall, we are temporarily looking at it with a short-term long short view.
Sudden explosion! According to official media reports, on the 14th local time, a warehouse storing highly toxic chemicals in Guadeloupe, Andalusia Autonomous Region, southern Spain, caught fire and exploded, causing minor injuries to two people. The authorities urgently requested nearly 80000 residents in the surrounding area to stay indoors for shelter. According to the mayor of Guadalajara, the ignition point was located in the tank area where toxic chemicals were stored. After the fire was brought under control, residual chemicals have been disposed of through controlled combustion. At present, environmental monitoring shows that the surrounding air indicators have returned to normal, and the specific cause of the accident is still under investigation. It is worth noting that this is the second chemical safety accident in Spain within a week. Previously (on the 7th), a chemical plant explosion occurred in the Tarragona Industrial Zone of the Catalonia Autonomous Region, sparking widespread discussions on the management of hazardous material storage in the area. The Spanish environmental department has stated that it will strengthen safety inspections of chemical facilities nationwide. Affected by the news, multiple individual factories are urgently conducting safety inspections!
Trump said he has asked Apple CEO Tim Cook to stop building factories in India. During his visit to Qatar, Trump mentioned his conversation with Cook. He is building factories across India. I don't want him to build factories in India, "Trump said. The result of this conversation is that Apple will" increase production in the United States. Trump said that India is one of the countries with the highest tariff barriers in the world, and it is very difficult to sell American products to this populous country. Apple had previously planned to import most of its iPhones sold in the United States from India by the end of next year. However, Trump's latest speech has put resistance to this plan.
Saudi Aramco announced on Wednesday that it has signed 34 memorandums of understanding and agreements with major companies such as ExxonMobil, Nvidia, and Amazon.com. These agreements have a potential value of up to $90 billion, covering various fields from liquefied natural gas procurement to artificial intelligence (AI).
After the thawing of Sino US trade relations, the cheap shopping website Temu is gradually resuming direct shipments of goods from China. As the United States began imposing high tariffs on small packages from China in early May, Temu completely stopped shipping from China. The Trump administration announced on Monday evening that it will lower tariffs on such packages from 120% to 54% after Washington and Beijing agreed to a 90 day trade truce. Currently, popular products shipped from China have been relisted on Temu's website, with prices increasing. Analysts expect more products shipped directly from China to appear in the coming weeks.