Entering Thursday, the current volatility of the silicone market is limited, but under the weak oscillation trend, subtle changes in the market will be constantly magnified and observed, and upstream and downstream enterprises will become increasingly cautious in their operations. Specifically, after falling all the way to the 7000 mark, industrial silicon futures finally saw a turnaround yesterday! On June 4th, as of 3:00 pm, the main contract for industrial silicon, 2507, closed with a red run, opening at 7150 and closing up 205 to 7280, an increase of 2.90%. The closing price increased by 210 compared to the previous trading day, and the pessimistic sentiment in the industry was restored. However, industrial silicon spot inventory is still at a high level. With the arrival of the wet season and the expected increase in operating rates in the southwest region, there is still a lack of clear signals for the rebound of 421 # metal silicon spot prices.
Currently, with weak demand and high supply, most organic silicon companies have to continue to follow the price for quantity track under cost and inventory pressures. Product prices are gradually approaching the low end, with single negotiations and low-priced transactions being the main focus. However, although prices have reached extremely low prices that profits can afford, as long as terminal demand cannot be followed up in a timely manner, positive feedback on orders is still limited. Therefore, the current market confidence is lacking, and upstream and downstream companies find it difficult to have optimistic expectations for the future.
In the short term, under the situation of supply-demand imbalance, the trading situation of price for volume is average. Individual factories may expand their maintenance scale to balance supply and demand, and yesterday some individual factories publicly quoted to increase profitability. The current DMC market price is 11400-12000 yuan/ton. If there are not many additional orders this week, there is a possibility that DMC prices may continue to fall.
107 glue and silicone oil market: The cost of DMC and demand are weakening simultaneously, and 107 glue and silicone oil companies also have difficulty operating in terms of prices. This week, the price of 107 glue is 12300-12500 yuan/ton, and the mainstream price of silicone oil is 14000-14500 yuan/ton. Real time negotiations are the main focus. From the on-site perspective, the inventory of 107 glue and silicone oil companies is still acceptable, and shipments are mainly targeted at core customers. The fundamentals are at a delicate balance point, so most companies maintain stable operations with limited price fluctuations.
In terms of demand, the real estate industry is still in the process of adjusting its economic cycle, and there has been no substantial improvement in basic needs. In the short term, the construction adhesive field is still settling down. Therefore, silicone adhesive companies are also keeping a calm attitude and continuing to purchase 107 adhesive and silicone oil for basic needs. However, 107 adhesive and silicone oil companies have not chosen to strike a stone with eggs in the face of this situation. Large scale manufacturers are also actively joining in and repairing to seek higher track expansion, while other small and medium-sized manufacturers are also actively joining forces to warm up and accumulate strength to better overcome difficulties.
Overall, currently, most of the 107 rubber and silicone oil companies are mainly reducing production. In the absence of downstream orders, they plan their layout rationally based on their own business situation, slowly clearing inventory, and the market continues to operate weakly and steadily.