At the beginning of September, the trading atmosphere in the silicone market finally stirred up some splashes. From the perspective of the market, as we enter September, individual factories continue to bid for orders, and the situation of low-priced transactions has improved, especially in the field of raw rubber. Multiple individual factories have simultaneously offered discounts to 11500 yuan/ton. The long watched rubber mixing enterprises are actively stocking up. On the one hand, there is indeed no room for price reduction, and on the other hand, the inventory in the early stage has been digested, and it is timely to replenish the stock that is urgently needed. Therefore, there was a significant improvement in the orders received by each individual factory yesterday, especially for some enterprises with low production capacity of raw rubber. After the raw rubber production reached around 4000 tons, which can meet the production needs in September, they immediately sold at low prices and closed their orders without reporting. And in the middle and lower reaches, under the news of the order closure, they dare not be too cautious and actively stock up on other individual factories' urgent needs.
Under the influence of silicone rubber stocking, DMC has also stimulated some essential procurement. At the same time, in early September, multiple facilities in Hebei, Shandong, and Zhejiang shut down to reduce load, resulting in a slight reduction in DMC supply. It is expected to stop the decline and operate steadily for a period of time in the short term.
In summary, under the stimulus of low prices, midstream and downstream enterprises mainly rely on basic stock quantities, which to some extent alleviates the pressure of single factory orders. However, the pattern of terminal demand has not changed, and the industry still lacks confidence in stockpiling. At the current low price point, it is generally believed that there is no upward support and no downward space in the middle and lower reaches. Therefore, the stocking strategy is to maintain stability and acquire essential goods. The more the price drops, the more you buy, and the more you rebound, the more you wait and see.
Raw rubber market: In September, the mainstream quotation of raw rubber enterprises is 118000-12300 yuan/ton. On the supply side: With the support of core customer orders, leading manufacturers have little inventory pressure, while some individual factories have reduced their production capacity. In the past two days, they have received another wave of demand orders at low prices, and the fundamentals of raw rubber supply have strengthened in the short term.
In terms of demand, for mixed rubber, the high priced supply in the early stage is gradually consumed, and the timing for low-priced stocking is just right. Therefore, most companies replenish their inventory for essential needs, and some companies stock up on small quantities. As far as we know, major manufacturers have received some orders at the price of 11500, and some have closed orders for raw rubber at low prices. The new transaction price has risen to 12000 yuan. In addition, due to the shortage of some models, some individual factories have stated that they do not have stock at the moment and are expected to produce and ship in late September. Currently, there is a strong willingness to raise prices, and the transaction price of some raw rubber will rise to 11800-12000 yuan/ton. However, it is worth noting that leading manufacturers have temporarily maintained last week's transaction prices, and whether the price increase operation can be implemented remains to be tested.