Half a week has passed, and today's silicone market is once again stabilizing. Looking at it now, due to the consistently sluggish industrial silicon market on the raw material side, coupled with the weak terminal market, orders have always been led by the market, and bearish sentiment has accumulated among enterprises. Especially after long-term losses in shipments, most enterprises still find it difficult to control the relationship between costs and profits, and are relatively cautious in entering and exiting goods. In the short term, the market transaction situation is average. In terms of individual factories, although some enterprises have rebounded, the overall supply pressure is still high, and there is a risk of oversupply. Some individual factories are still actively laying out the strategy of exchanging price for quantity and reducing production simultaneously. In the future, under the weak supply-demand situation, the rebound expectation has weakened, and there is still a downward risk in DMC prices. It is expected that the DMC market will continue to operate steadily this week.
Raw rubber market: This week, the supply and demand of raw rubber enterprises have been temporarily suspended, and the mainstream quotation remains firm at 12700-13500 yuan/ton, with some rising by 200 yuan. From the supply side perspective, the main manufacturers have a firm attitude towards stabilizing prices. After last week's active stocking of rubber mixing enterprises, the raw rubber enterprises have achieved remarkable results in reducing inventory, and the inventory pressure of enterprises is not significant in the short term. In terms of demand, macro policies continue to benefit the high-temperature rubber market, and recent silicone rubber exhibitions have been linked to promote order transactions through upstream and downstream interactions, further boosting the market. Currently, leading factories have sufficient orders for raw rubber. Although there is insufficient motivation for rubber mixing enterprises to replenish their inventory, previous orders are still sufficient to support the continued stability of raw rubber. It is expected that the price of raw rubber will remain stable with some progress this week.
The mixed rubber market: The raw material raw rubber quotation is firm, and this week the mixed rubber enterprises are weakly stable at 12300-12800 yuan/ton. At present, the production profits of rubber mixing enterprises are limited, coupled with the limited recovery of the end consumer market. After the significant reduction of tariffs, the acceptance of rubber mixing orders has not been as expected. Some enterprises have maintained reduced production to avoid the risk of losses. Therefore, even with frequent favorable factors on the market, most enterprises still hold a reserved attitude towards the positive expectations of the future market. With unstable confidence in bottom fishing, the current procurement is only to complete the basic three vehicle stocking volume, and the enthusiasm for chasing price increases is not high. Overall, most rubber mixing companies remain cautious and are expected to maintain stable prices in the short term.
In terms of silicon products: As we enter the second half of the month, the end of month stocking node is approaching, and orders from silicon product companies have also been driven. Recently, several major online shopping platforms have launched the "6.18" promotion activity in advance, and the "billions of subsidies for home appliances" special session has also been fermented ahead of schedule. There has been a certain release of demand for applications and terminals. Although it has not truly driven the demand side to improve, sustained positive factors from multiple parties can always lead to a qualitative change in quantity. Silicon product companies are among them, and they are vigorously "involuting" from product prices to application innovation. Some processing plants actively layout short-term channel marketing in order to seek first-hand orders, thus opening up new market sales channels. It can be foreseen that although the competition for high-temperature adhesives is fierce and the reshuffle is accelerating, the future demand is still promising. Overall, the current market is maintaining a pattern of oversupply, with significant resistance to upstream rebound. Most companies have a clear intention to reduce inventory, but in the general loss pattern, the upstream and downstream are still stuck in a stalemate of low-priced transactions, and due to poor shipments, especially limited inquiries from room temperature rubber companies, the purchasing willingness of high-temperature rubber companies is gradually declining. In the future, organic silicon companies may continue to be trapped in a price tug of war.