On February 24th, A-shares celebrated the first trading day of the Year of the Horse, with the three major indexes collectively opening high. As of the close, the Shanghai Composite Index rose 0.87%, the Shenzhen Component Index rose 1.36%, and the ChiNext Index rose 0.99%. More than 4000 individual stocks in the two markets are floating red.
In terms of sectors, the organic silicon sector has shown strong performance, with an overall increase of 3.51%, driven by multiple factors such as supply side contraction, steady demand side recovery, and improved performance of leading companies, coupled with the influx of funds. Among them, Xingfa Group and Sanyou Chemical were strongly closed, with an increase of about 10%; Xin'an Shares, Hongbai New Materials, Silicon Treasure Technology, Dongyue Silicon Materials and other stocks have also followed suit, causing a surge of limit up within the sector.
Returning to the present, the market for the first week of the Year of the Horse is gradually unfolding. Looking back at the pre holiday period, after the price of organic silicon increased by 300, mid to downstream enterprises gradually completed the pursuit of price increases and stocking up, and then gradually turned to essential procurement. The overall trading atmosphere improved, providing stable confidence support for the market. Returning after the holiday, although the first wave of the market for the beginning of the year has not yet officially started, the signal of stability and waiting for an increase has been released. The meeting of individual factory controllers will be held next week (heavy news for individual factories! The first meeting of organic silicon for spring will be held in Zhejiang!). It is expected that the emission reduction deployment will continue to be deeply implemented in the future. Against the backdrop of expected supply side contraction, a new round of phased stocking has been put on the agenda. Overall, the main manufacturers have sufficient orders, and the opening price of DMC is firm at 13800-14000 yuan/ton, expected to operate steadily with a moderate increase in the short term.
Raw rubber market: After the holiday, the domestic raw rubber market opened steadily, with mainstream prices ranging from 14800 to 15000 yuan/ton. From the supply side, due to the maintenance of load reduction operation in the pre holiday rubber production equipment, the overall supply level of the industry is tightening, and some downstream rubber mixing enterprises still have urgent orders to follow up. Therefore, the pre-sale orders of rubber manufacturers are relatively sufficient, and this week will continue to focus on production scheduling. Supported by this, the pressure on raw rubber companies to ship is not high, and they may continue to operate on a per order basis and maintain stable shipments, giving them more confidence in raising prices. On the demand side, the market is in the early stage of returning to the market, and downstream and end enterprises are actively resuming work and production. Considering that it is already the end of the month and there is a strong bullish expectation after the holiday, some A-class customers of leading factories who have not completed the basic stock preparation have been actively replenishing their positions in recent days. Therefore, the expected new orders for opening this Monday are relatively optimistic, and the raw rubber quotation next week may be adjusted according to the trend of DMC.
The mixed rubber market: Driven by bullish expectations before the holiday, some companies have completed phased stocking and restocking, but there are also some companies that need to replenish their inventory after the holiday to avoid chasing high risks. Yesterday, although it was the first working day after the holiday, the stocking of rubber compound enterprises was still acceptable. Combined with pre-sale orders before the holiday, the rubber compound factory is resuming production with great enthusiasm, and the overall shipping pressure is controllable. The mainstream offer for conventional hardness rubber compound remains at 13800-14100 yuan/ton. On site, new application areas such as electricity, new energy, humanoid robots, and silicone leather are constantly expanding, driving an increase in demand for high-temperature adhesives, and downstream enterprises are keeping up with the replenishment pace. However, the homogenization competition pressure in the ordinary rubber mixing market is more prominent, and the price lacks strong upward momentum. It is expected that the rubber mixing market will continue to operate steadily in the short term.