Entering Thursday, the week is coming to an end, but the profit sharing storm in the organic silicon market has not really ended. Yesterday, the cost side industrial silicon market fluctuated downward again, and the closing price of the main futures contract Si2511 was 8390 yuan/ton, down 250 yuan. The spot 421 # metal silicon fell to 9600-10300 yuan/ton, weakening the support for DMC prices. The weakening of cost pressure has released the space for individual factories to offer discounts, and the bearish sentiment in the market has intensified. Some downstream enterprises believe that the discount market has not yet ended, so they are still cutting prices, leading to intensified bidding by individual factories. It is understood that the transaction price of some DMC has fallen to 10700 yuan/ton, and some middle and downstream companies have already made moderate price cuts. At present, individual factories are actively bidding to reduce inventory, and the early inventory in the middle and lower reaches is gradually being digested. Due to the continuous rise of industrial silicon in the past two months and the high cost of individual factories, this round of decline may be difficult to break through the historical low price in June. Therefore, in the short term, attention should be paid to the bottom buying operations of large middle and lower reaches. It is expected that a new round of stocking peak is coming, and there may be oversold and rebound operations at the end of the month.
107 glue and silicone oil market: Currently, there has been a slight decline in DMC in some areas, and some 107 glue companies have also followed suit. This week, the price of 107 glue is 11500-12000 yuan/ton; The mainstream quotation for silicone oil is 12800-13500 yuan/ton, and the focus of transactions has shifted downwards. Specifically, due to the sluggish demand in the terminal real estate market, downstream silicone rubber companies were already bearish. Now that the upstream decline is strong and there is no positive market support, silicone rubber companies are only purchasing on demand without a clear intention to stockpile. Therefore, there is a strong bearish sentiment in the market. Companies such as 107 glue and silicone oil have not performed well in terms of new orders after following up on their quotations, and the market response has been relatively cold, resulting in trading volume not reaching the expected level and poor shipments. Currently, most companies are in a wait-and-see state, with low purchasing intentions or waiting for opportunities to enter at lower prices. However, on Tuesday, the leading manufacturers adopted a strategy of exchanging price for quantity in the face of a sluggish market. The price of 107 glue for A-class customers was reduced to around 11300 yuan/ton, while ensuring the normal operation of their production equipment through high-volume transactions. Other 107 glue and silicone oil companies followed suit and bid narrowly, resulting in a certain improvement in market transactions. Overall, due to weak demand, 107 rubber and silicone oil companies continue to offer discounts on shipments. In the short term, they may continue to adopt a price for volume strategy to build a bottom market in the current market environment and lay the foundation for future market rebounds. In terms of foreign brand silicone oil: Due to the impact of the domestic market downturn and the normal operation of the Zhangjiagang plant, the supply exceeds demand in the market, and some agents have to lower their prices to stimulate trading volume. Currently, foreign brand silicone oil agents quote 15500-17500 yuan/ton, and there is still a possibility of downward trend in the future.