Entering Thursday, the silicone market maintained a strong trend. From the perspective of the market, driven by both macro positive factors and upstream cost support, mid to downstream enterprises are still carrying out pre holiday procurement plans in an orderly manner, especially those with full orders. To ensure stable production during the Spring Festival period, they are currently adding inventory to maintain good continuity of overall orders. In terms of individual factories, it is expected that after deploying the production capacity arrangement for pre-sale orders, some enterprises will gradually reduce their workload to avoid inventory accumulation during the Spring Festival period; If the plan to reduce negative load is implemented in the future, with supply contraction and continuous follow-up of new orders, the pre holiday market is expected to usher in the last round of upward recovery. Overall, the current supply and demand pattern is relatively optimistic, and the price of organic silicon is expected to remain stable in the short term.
107 glue and silicone oil market: Raw material prices remain stable, and this week, 107 glue and silicone oil companies are also operating steadily overall. At present, the mainstream quotation for 107 glue is 14500~14800 yuan/ton, and the mainstream quotation for silicone oil is 15500~16100 yuan/ton.
In terms of supply, due to differences in cost structure and customer groups, inventory and production levels have differentiated among 107 adhesive manufacturers, and orders are also relatively scattered; In terms of silicone oil, the prices of raw materials DMC and silicone ether remain high. Under production pressure, enterprises mainly rely on digesting low-priced inventory in the early stage. However, downstream essential procurement is still following up, and the overall profit of the industry is still acceptable. Enterprises have a strong willingness to raise prices.
On the demand side: Affected by the weak demand side, the phased stocking of downstream silicone rubber giants has gradually cooled down, and high priced transactions have shown average performance. However, due to multiple construction adhesive projects entering the final stage before the New Year, silicone adhesive companies have certain urgent procurement needs. Driven by both supply and demand, it is expected that 107 rubber and silicone oil companies will maintain a high price trend in the short term.
Cracking material silicone oil market: New material prices remain strong, coupled with silicone rubber companies carrying out winter storage and stocking, cracking material companies have maintained a certain degree of order continuity by relying on price advantages. Due to the high cost pressure of silicone adhesive, despite the relatively low price of cracking materials, inquiries for cracking materials are still being made under limited profits. However, due to financial pressure, some split material companies continue to offer discounts and accept orders. In the short term, the cracking material market orders are relatively stable, and the price of cracking material silicone oil remains at 12500-13000 yuan/ton.
In terms of waste silicone, the speed of inventory disposal by recyclers is average, and the amount of materials received has decreased, which has prompted silicon product factories to accelerate the processing of raw materials. The shipment situation of cracking material enterprises has improved, but under financial pressure, they still adopt a price cutting procurement strategy for waste silicone gel. At present, the price of raw materials for cracking is about 3300-3500 yuan/ton (excluding tax), and there is a certain margin for actual transactions. It is expected that the market will continue to operate weakly.