The country has just named three trillion dollar markets, and our opportunity for organic silicon has come! On November 26th, six departments including the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly announced the "Implementation Plan for Enhancing the Adaptability of Consumer Goods Supply and Demand to Further Promote Consumption". At the press conference of the State Council Information Office, it was stated that elderly products, intelligent connected vehicles, and consumer electronics will be listed as key areas of trillion level consumption cultivation. Bringing huge opportunities to the silicone industry. Elderly products require safe and skin friendly silicone materials, while smart cars and consumer electronics urgently need a large amount of high-performance thermal conductive and sealed silicone. Organic silicon enterprises should seize the opportunity, increase research and development, deeply integrate into these industrial chains, and achieve high-value development.
Have you heard about it? The upstream raw material of silane coupling agent KH560- glycidyl ether, has an accident! According to industry insiders, its main production enterprise experienced an explosion on the 19th of last month, and now the goods are very tight. Although everyone's inventory can last for a while, it's completely uncertain when they will resume work. Now the price of glycidyl ether has started to rise, and this type of diluent has generally increased by 5 yuan per kilogram. The key is that traders are still unable to receive the goods! In theory, the domestic production capacity is sufficient, but this factory has the best quality. Now, various silane companies are desperately stockpiling, making it even harder to buy in the market. If it continues to shut down, the impact will be significant. KH560 is likely to increase in price again, and it will also be out of stock!
Overview of Organic Silicon Market on December 3rd: Latest Developments in DMC Market. According to the latest data, the average price of DMC in the domestic market has risen to 13350 yuan/ton, an increase of 100 yuan/ton from the previous working day. The main reason for the price increase is that some individual units in Zhejiang and Inner Mongolia have joined the maintenance team since today, resulting in the overall average operating load of the industry dropping below 70%. At the same time, considering the upcoming industry conference, there has been a significant increase in the phenomenon of single factory closures and reluctance to sell, which has tightened the spot supply of DMC. Driven by the market sentiment of "buying up, not buying down", downstream enterprises have regained their enthusiasm for inquiries and purchases. It is reported that the main factories in Shandong had good order conditions on the 3rd. Regarding the future market, we expect that market prices will show a stable to upward trend in the short term. The main driving factors are as follows: Firstly, after entering December, it is expected that the number of individual manufacturers planning maintenance will gradually increase, and there is an expectation of continuous tightening on the supply side. Secondly, individual factories currently have a strong willingness to raise prices, while downstream wait-and-see sentiment is gradually weakening.