Rise up! Rise up! Rise up! On July 2nd, Dongyue Silicon Materials hit the daily limit up, with a 20% increase! At the same time, the main contracts for industrial silicon and polycrystalline silicon in the domestic futures market rose hand in hand. As of the close, the main contract for polycrystalline silicon reached the daily limit up, closing at 35050 yuan/ton, up 6.99%. The main contract for industrial silicon closed at 8210 yuan/ton, up 4.79%. The forward contract for industrial silicon reached the daily limit up of 2606 yuan/ton. On the news front, yesterday's high-level meeting emphasized that in order to eliminate "internal competition", focus on key and difficult points, govern low price and disorderly competition among enterprises in accordance with laws and regulations, guide enterprises to improve product quality, and promote the orderly exit of backward production capacity.
Recently, the industrial silicon market has experienced severe fluctuations, with prices frequently fluctuating significantly. Mainly affected by multiple news: large factories reducing production, Yunnan silicon plant entering a period of abundant water to resume production, polycrystalline silicon plant resuming production, macro news stimulation, etc. However, the current supply is still loose, and industrial silicon may inevitably be constrained by "weak reality" again.
The rebound of industrial silicon has strengthened the support for individual factories. Yesterday, some individual factories released a batch of low-priced raw rubber orders. In the afternoon, the raw rubber orders priced at 11500 yuan/ton were temporarily closed and not accepted, showing a rising price trend. Currently, the raw rubber quotation is 11700-12500 yuan/ton, and the DMC quotation remains stable at 10300-10800 yuan/ton.
Overall, after waves of low-priced discounts to reduce inventory, the pressure on individual factories' inventory has slightly eased, and there are also signs of a rebound in costs. Confidence in maintaining stability has increased in early July, while downstream inventory is sufficient, and the driving force for chasing price increases is limited. There have been few game negotiations between the two sides, maintaining stable operation.
Rise up! Rise up! Rise up! On July 2nd, Dongyue Silicon Materials hit the daily limit up, with a 20% increase! At the same time, the main contracts for industrial silicon and polycrystalline silicon in the domestic futures market rose hand in hand. As of the close, the main contract for polycrystalline silicon reached the daily limit up, closing at 35050 yuan/ton, up 6.99%. The main contract for industrial silicon closed at 8210 yuan/ton, up 4.79%. The forward contract for industrial silicon reached the daily limit up of 2606 yuan/ton. On the news front, yesterday's high-level meeting emphasized that in order to eliminate "internal competition", focus on key and difficult points, govern low price and disorderly competition among enterprises in accordance with laws and regulations, guide enterprises to improve product quality, and promote the orderly exit of backward production capacity.
Recently, the industrial silicon market has experienced severe fluctuations, with prices frequently fluctuating significantly. Mainly affected by multiple news: large factories reducing production, Yunnan silicon plant entering a period of abundant water to resume production, polycrystalline silicon plant resuming production, macro news stimulation, etc. However, the current supply is still loose, and industrial silicon may inevitably be constrained by "weak reality" again.
The rebound of industrial silicon has strengthened the support for individual factories. Yesterday, some individual factories released a batch of low-priced raw rubber orders. In the afternoon, the raw rubber orders priced at 11500 yuan/ton were temporarily closed and not accepted, showing a rising price trend. Currently, the raw rubber quotation is 11700-12500 yuan/ton, and the DMC quotation remains stable at 10300-10800 yuan/ton.
Overall, after waves of low-priced discounts to reduce inventory, the pressure on individual factories' inventory has slightly eased, and there are also signs of a rebound in costs. Confidence in maintaining stability has increased in early July, while downstream inventory is sufficient, and the driving force for chasing price increases is limited. There have been few game negotiations between the two sides, maintaining stable operation.
Cracking material silicone oil market: Currently, the price of new materials continues to loosen downwards, and cracking material enterprises receive very few orders. However, the room for negotiation of new material manufacturers' quotations is limited, and cracking material enterprises have certain advantages in receiving orders. Currently, the price of cracking material silicone oil continues to range from 11000 to 11800 yuan/ton, maintaining single order negotiation and individual order delivery.
In terms of waste silicone, due to the low procurement volume of the cracking material factory, it is even more difficult to increase the quantity at the beginning of the month. In this situation, waste silicone recyclers continue to have poor shipments, and there is not much purchase of silicon product raw materials. Market transactions continue to be sluggish, and raw material quotations continue to be 3300-3600 yuan/ton (excluding tax).
Overall, companies producing cracking materials and waste silica gel are restricted by end-users, and the market continues to operate weakly.
On the demand side: Looking at the first half of the year, data from the China Index Research Institute shows that from January to June, the total sales of the top 100 real estate companies were 1836.41 billion yuan, a year-on-year decrease of 11.8%, which is 1 percentage point larger than the decline from January to May. Among them, there are 4 real estate companies with total sales exceeding 100 billion yuan, a decrease of 2 compared to the same period last year; There are 46 real estate companies with over 10 billion yuan, an increase of 2 compared to the same period last year. In June, the overall real estate market continued to stabilize, with a transaction volume of 10.34 million square meters for new houses in 30 key cities. The cumulative transaction volume in the first half of the year was basically the same as the same period last year. It is expected that the absolute volume of new house transactions in July will continue to fluctuate at a low level, but due to the low base last year, there is still a possibility of further narrowing the year-on-year decline.
It is expected that in the second half of the year, the government will promote the release of housing demand through measures such as increasing the placement of housing tickets for urban village renovation; At the same time, further improve and implement the acquisition of idle land and commercial housing through special bonds, activate existing assets of enterprises, and improve their financial situation. Looking back at the current situation, there have been few positive news about the real estate market recently, and the market situation has remained lukewarm. In order to avoid risks, the operating rate of silicone adhesive companies has remained low, and the demand support is average.
Overall, the pattern of oversupply in the silicone market continues, and the profits of industry enterprises continue to be compressed. In the absence of confidence in stocking, macro positive news has limited impact on the market. Currently, upstream and downstream enterprises are mainly focused on purchasing with less action, or continue to purchase cautiously according to demand, balancing the relationship between costs and profits as much as possible. At the same time, they are more actively opening up sales channels and innovating brand uniqueness, seeking more connections and cooperation to face the more brutal market competition in the second half of the year.