According to CCTV News, US President Trump stated on the 16th that the US may implement tariff rates on Japan according to the previous letter and may soon reach a trade agreement with India, as well as a trade agreement with Europe. The day before, Trump stated that the United States had reached an agreement with Indonesia and the agreement with Vietnam had also been largely finalized. On the same day, Trump also announced on the social media platform "Real Social" that the United States will impose a 19% tariff on all imported Indonesian goods, and US exports to Indonesia will enjoy tariff free and non-tariff barrier treatment. Industry insiders believe that the competitive advantage of Southeast Asian silicone enterprises has weakened, and industry competition has intensified. The latest market research shows that multiple manufacturers in the region will experience a decline in both quantity and price in the first half of 2025, with some companies experiencing a year-on-year decline of over 20% in production and sales scale and product prices. The industry is facing severe challenges.
On Thursday, the organic silicon market continued its upward trend, with the benchmark enterprise DMC in Shandong raising its price to 10800 yuan/ton, a cumulative increase of 500 yuan/ton from the beginning of the month. The quotations of other individual enterprises have temporarily remained stable in the range of 11500-12300 yuan/ton, mainly based on the execution of previous orders. The market presents the following characteristics: 1 Significant cost support: The continuous strengthening of metal silicon prices provides strong cost support for the organic silicon market; 2. Obvious differentiation in transactions: The willingness to take orders in the middle and lower reaches has rebounded, but transactions in the high price range are still relatively light; 3. Supply side dynamics: The three major factories launched a bidding and order taking mechanism in the afternoon, boosting the market trading atmosphere. However, due to the slowdown in the growth rate of terminal demand in the global silicone market, it remains to be seen whether downstream terminal links can continue to accept the price increase on the raw material side.
News: Cracking unit production reduction: Currently, there are 7 cracking enterprises nationwide implementing production reduction or shutdown, including 2 long-term shutdown cracking enterprises; Capacity optimization pressure: Some high cost small and medium-sized enterprises have implemented production cuts due to continuous losses, and the cracking industry is facing capacity clearance. Market outlook: Although the rebound in operating rates of some individual units has intensified the market's wait-and-see sentiment, with the support of raw material costs, it is expected that the price of organic silicon will maintain a stable to strong trend in the short term. Special attention should be paid to the withdrawal of cracking capacity and the actual improvement of downstream demand.
New change in net profit, skyrocketing by over 2000%! Northern Rare Earth announced that it expects a net profit of 900 million to 960 million yuan in the first half of 2025, a significant increase of 1882.54% year-on-year to 2014.71%. On July 17th, the company stated that product prices are mainly influenced by supply and demand. Since the first quarter, due to policies such as tightening upstream raw material supply and stimulating downstream consumption, the overall activity of the rare earth market has been better than the same period last year. After entering April and May, rare earth prices briefly fell due to the international environment. However, with the gradual clarification of national policies, the attention to the rare earth industry has also increased, driving up product prices. Currently, the company's subsidiary Inner Mongolia North Rare Earth Magnetic Materials Co., Ltd. has relatively full orders, and the company holds an optimistic view on the future trend of rare earth prices.
Industry insiders believe that the net profit of rare earths in the north has skyrocketed by over 2000%, indicating that the era of "resources are king" is coming. Hesheng, which has the largest resources such as silicon ore in the industry, is receiving attention. On the evening of July 16th, Hesheng Silicon Industry announced that its controlling shareholder Ningbo Hesheng Group Co., Ltd. plans to transfer 5.08% of the company's shares to Xiao Xiugen for a total price of 2.634 billion yuan. According to the announcement, Hesheng Silicon Industry Co., Ltd. recently received a notice from its controlling shareholder Hesheng Group that, due to its own financial needs and the development needs of the listed company, Hesheng Group signed the "Share Transfer Agreement of Hesheng Silicon Industry Co., Ltd." with Xiao Xiugen on July 16, 2025, intending to transfer 60000000 shares of unlimited tradable shares (accounting for 5.08% of the company's total share capital) to Xiao Xiugen through an agreement transfer method at a price of 43.90 yuan per share, with a total transfer price of 2634000000 yuan. This share agreement transfer does not involve any change in the company's control rights, nor does it involve a tender offer. This equity change will not result in any changes to the company's controlling shareholder or actual controller, and will not have a significant impact on the company's governance structure and ongoing operations. (Source: Oriental Wealth Network, Hesheng Silicon Industry)