The current organic silicon market presents a supply-demand stalemate. Due to the lack of demand during the traditional "Silver Ten" peak season, orders in the middle and lower reaches have remained weak, unable to provide more market support. In addition, the reduction in the digestion of industrial silicon by polycrystalline silicon has led to the accumulation of industrial silicon inventory, causing a recent decline in the cost side industrial silicon prices. Yesterday, the price of 421 # metal silicon fell by 100 to 9700-10300 yuan/ton, weakening the support for DMC prices.
However, some individual factories have concentrated on reducing production due to previous losses, forming supply side support. At the same time, under the buying sentiment, some downstream enterprises have supplemented their essential needs and stocked up, and the amount of raw materials in transit is considerable. The actual transaction volume weakened during the week, and the bidding risk increased. There are signs of a decline in the actual transaction price this week. As of October 22, DMC quoted 11200-11500 yuan/ton, and the transaction price was 11000-11300 yuan/ton;
In the short term, due to cost pressures and demand constraints, midstream and downstream enterprises find it difficult to have more purchasing space. Currently, order digestion is the main focus, and individual factories are also waiting for clearer market signals. It is expected that the price of organic silicon market will continue to fluctuate narrowly and operate steadily.
107 glue and silicone oil market: The raw material DMC remains stable, and individual factories have a strong willingness to stabilize prices. The price adjustment of 107 glue and silicone oil is limited. This week, the price of 107 glue will continue to be 11500-12000 yuan/ton, and the price of silicone oil will be 13300-13800 yuan/ton. Specifically, due to insufficient downstream order growth, 107 rubber and silicone oil companies generally have meager profits. In order to maintain supply and demand balance, most companies are struggling to control the volume of incoming and outgoing goods, and inventory pressure is still controllable.
Looking at the end of the month, there may be some fluctuations in the demand for silicone adhesive stocking. However, due to the sluggish demand for real estate and the failure of the "Silver October" policy, many silicone adhesive companies have entered a wait-and-see state, buying at low prices to replenish their inventory. The centralized procurement layout has not been launched for a long time, making it difficult to effectively boost the market. The overall upward space for 107 adhesive and silicone oil is limited, and companies lack the confidence to maintain stability. Some still have room for concessions, and it is expected that the market will maintain a stable trend in the short term.
Cracking material silicone oil market: Currently, the imbalance between supply and demand in the market continues, and downstream inquiries are limited due to cautious sentiment. At the same time, orders are mainly concentrated towards new materials, and the amount of orders diverted to the cracking material market is extremely limited, with severe price pressure, resulting in cracking material enterprises generally in a state of low profit or even loss. Currently, the price of cracking material silicone oil continues to be 10800-11300 yuan/ton, and operations are maintained through production reduction and individual trading.
In terms of waste silicone gel, silicon product companies have low production rates, slow production of burrs, and are reluctant to sell at low prices; Cracking material enterprises have average trading volume, and under high financial pressure, they continue to squeeze the profits of waste silicone rubber recyclers and suppress price inquiries. Currently, the raw edge to goods price of cracking material enterprises is between 3000-3200 yuan/ton (excluding tax), and the transaction is relatively deadlocked.
Looking at the end of the month, it is still difficult to boost transactions after the price reduction of raw materials. If there is no significant improvement on the demand side, the market for cracking materials and waste silicone will continue to be under pressure, with limited price fluctuations and a weak situation.