Recently, the dynamics of the silicone market and platinum market have attracted much attention, showing different development trends.
In the silicone market, although the average transaction price of DMC for 11 individual enterprises nationwide remained stable on Monday compared to last Friday, the overall market still faces many difficulties. As of June 9th, the mainstream spot price of DMC is between 11000-12500 yuan/ton, and the prices of raw rubber, 107 rubber, silicone oil and other products also vary. However, currently over 50% of individual factories have high inventory levels, and companies are increasing their enthusiasm for accepting orders to alleviate financial pressure. However, the downstream demand side continues to be weak, with buyers holding down prices and observing, resulting in sluggish market trading.
The prices of the entire industrial chain are under pressure, and the price of raw material DMC has fallen, driving the synchronous decline of raw rubber, 107 rubber, and silicone oil products. Cost support has weakened, terminal orders are insufficient, downstream companies' bearish expectations have increased, and some manufacturers have voluntarily lowered their quotes, exacerbating downward pressure on the market. The current price of organic silicon has fallen below the cost line of most individual enterprises, putting enormous pressure on small and medium-sized enterprises to survive, facing problems such as customer loss and tight funding chains. In the context of overcapacity, the organic silicon industry may usher in a new round of reshuffling in 2025, and companies with weak operations face higher risks of exit. In the short term, there is still room for a downward trend in DMC prices, and the recovery of terminal demand is weak. It is expected that the organic silicon market will maintain a stable to weak operation, and the industry's profit recovery needs to wait for the improvement of the supply and demand pattern.
However, the silicone market is not without its highlights. Industry insiders believe that in the future, the core IP explosive products of silicone products will usher in a new cycle of explosive growth, and silicone product creative design companies may become one of the most profitable industry chain companies in the silicone industry. This has brought a glimmer of hope to the silicone market.
At the same time, a "white storm" has swept through the platinum market. Since late May, platinum prices have risen rapidly, with spot platinum prices reaching a high of $1172.59 per ounce yesterday. The main contract for platinum futures in New York has risen nearly 5% during the day, with a 28% increase so far this year, reaching a new high in nearly two years. According to sources from Heraeus, the platinum market has been experiencing a supply gap for three consecutive years, with visible inventory levels continuing to decline. If the supply and demand fundamentals maintain their current trend, platinum prices may continue to strengthen. Currently, platinum has a significant discount compared to gold, attracting wholesalers to increase inventory, but demand in the industrial sector still faces pressure.
Liquid silicone experts believe that the fluctuation of platinum prices is mainly driven by the supply and demand pattern, and this round of price surge is caused by the valuation repair of the precious metal sector, the growth of industrial application demand, and the resonance of financial value reassessment. In the medium to long term, under the background of green energy transformation, the platinum price center is expected to maintain a fluctuating upward trend. However, in the short term, the market faces multiple tests and needs to be vigilant about the impact of macroeconomic risks in the United States on industrial demand, especially the inflationary stickiness brought about by trade protection policies, which may exacerbate the pressure of "stagflation" and restrict the upward space of prices. The current market needs to pay more attention to the marginal impact of the Federal Reserve's policy path and the progress of the hydrogen energy industry on platinum demand.
The silicone market and platinum market each have challenges and opportunities, and companies need to closely monitor market trends and respond flexibly to seek survival and development in complex market environments.