Another 200 drops! Yesterday, the prices of DMC and D4 from some individual factories in Shandong continued to drop by 200 yuan, with a price of 11300 yuan/ton. Previously, they had concentrated on accepting orders with the advantage of low prices. After the price war intensified this week, their online transaction bidding continued to offer discounts, intensifying the stimulation of downstream stocking. Other individual factories also entered the order grabbing stage and had their own discount plans for core customers, which sparked a wave of discount frenzy in the market. At present, a wave of price reductions by individual factories will take away a batch of orders, effectively easing the supply side. However, mid to downstream enterprises have returned to wait-and-see after stocking up on a batch of goods at low prices. Faced with weak demand and embarrassing profit margins, they lack confidence in buying at the bottom. Currently, there is not much hoarding phenomenon, only focusing on basic needs and a small amount of "golden nine" stocking layout. Overall, the increase in operating rates in August has easily disrupted the fragile supply-demand balance. Currently, the price war is intensifying, and some companies are waiting for a signal to stop the decline before entering the market. This week, the upstream and downstream inventory absorption is not very smooth, which still poses a risk of decline. Individual factories need to carefully control the relationship between inventory and profits. It is expected that the DMC transaction price will fall below 11000 yuan/ton in the near future.
Cost aspect: On the supply side, with the deepening of the wet season, the resumption of production in the southwest region is accelerating, and the number of newly opened furnaces continues to rise. Some small and medium-sized silicon plants in Xinjiang have been affected by low prices in the early stage, and their enthusiasm for resuming production is not high. Overall production remains relatively stable. In terms of demand, downstream polycrystalline silicon is expected to increase significantly in August, leading to an increase in demand for industrial silicon; Organosilicon is also expected to increase production, and there is an overall increase in demand. Overall, the supply and demand in the industrial silicon market are relatively balanced at present, but the growth rate of supply is greater than demand, which still drags down inventory and slightly reduces market sentiment. In recent days, industrial silicon futures have fallen back. Yesterday, the closing price of the main contract Si2511 was 8675 yuan/ton, a decrease of 100 yuan. The spot price of 421 # metal silicon remained stable at 9750-10100 yuan/ton. It is expected that the industrial silicon market will continue to fluctuate within a certain range in the future.
Precipitation white carbon black market: On the raw material side, the sulfuric acid market has been relatively stable recently, with smooth shipments and continued high prices; In terms of soda ash, downstream enterprises have limited acceptance of high priced sources, with average new order transactions and stable prices. This week, the prices for light alkali and heavy alkali were quoted at 1050-1520 yuan/ton. Due to limited support from precipitated white carbon black enterprises in terms of cost, the current focus of transactions is still on the demand side. Specifically, due to the bearish sentiment in the market, downstream companies such as silicone products and silicone rubber have reduced their production enthusiasm, and are constrained by the terminal market. Their intention to buy and sell is not obvious, and overall market transactions revolve around rigid demand. The purchase of precipitated white carbon black is average, and the current price of precipitated white carbon black for conventional silicone rubber is 6000-6800 yuan/ton, continuing to operate weakly and steadily.