Entering mid March, the organic silicon market continued to show a positive trend, and overall trading sentiment steadily increased. Last week, individual factories explicitly set a target of reducing emissions by 35%, and subsequently raised the overall emissions by around 300. At the same time, geopolitical conflicts continue to escalate and energy and chemical supply chain disruptions intensify, leading to a significant increase in methanol and raw material prices, and stronger cost support for individual factories. In this context, the bullish sentiment in the middle and lower reaches has heated up, and silicone adhesive has issued a new round of price increase letters of 5% -10%. At the same time, Dow also announced the implementation of new prices on March 27th, announcing a 5% -15% increase. The overall market is immersed in the sound of "rising". From actual transactions, it can be seen that due to the moderate stocking of goods in the middle and lower reaches before the price increase, the pursuit of higher prices is still cautious. Last week, the release of new orders was limited, and manufacturers mainly placed early orders. Considering the cancellation of tax refunds in April, which has a certain negative impact on the market, downstream enterprises generally maintain a strategy of replenishing inventory as needed. Overall, with the comprehensive adjustment of the organic silicon industry chain, the overall profit margin of the industry has been alleviated to a certain extent. This shows that the "anti involution" work has achieved phased results, promoting enterprises to shift from "scale competition" to "efficiency oriented". However, long-term sustainability still requires the dual drive of demand side improvement and innovation investment.
In the future, if geopolitical conflicts lead to sustained increases in bulk raw materials, individual factories will also implement emission reductions as planned, and supply contraction and cost support are expected to form a synergy, catalyzing a new round of price exploration. In the near future, it is necessary to closely monitor the feedback of individual factory operating rates and downstream inventory turnover pace on price transmission