The atmosphere of high prices continues! From a mid month perspective, midstream and downstream enterprises generally focus on digesting previous inventory and adopt a wait-and-see attitude towards the future market. However, as the prices of raw materials and additives continue to rise, the market's fear of price increases is gradually spreading. It is expected that some companies may follow up to replenish their inventory to ensure subsequent production orders and improve expectations for new orders. In addition, the launch of the Guangzhou Doors, Windows, and Curtain Walls Exhibition yesterday has attracted attention in the field of construction adhesives. Silicone adhesive companies have successively issued price increase letters, and the inventory of the room temperature adhesive industry chain has been well digested, with the increase gradually landing and the market's bullish sentiment further heating up. In terms of individual factories, with the support of pre-sales and new orders, the current shipment pressure is not significant, and the quotation remains stable at a high level. It is expected that the volatility of the silicone market will be limited in the short term.
107 glue and silicone oil market: This week, the mainstream price of 107 glue is 14800 yuan/ton, and the price of silicone oil is 15800-16100 yuan/ton, operating steadily. On the supply side, the emission reduction levels of individual factories vary, and there is a slight loosening of 107 glue in some areas, which can be negotiated for concessions. And silicone oil companies are actively delivering export orders, with sufficient pre-sale orders in the short term. According to yesterday's announcement from Hengye Cheng, silicone oil orders are scheduled for the second quarter. In addition, due to the tight supply of tertiary grade, the price of another key raw material for silicone oil, silicone ether, continues to rise, rising by 1000 yuan to 2700 yuan/ton this week, further supporting the cost of silicone oil. In terms of demand, the release of favorable real estate policies during the Two Sessions period has brought positive signals to the construction adhesive market; Combined with the Guangzhou Curtain Wall Exhibition held in recent days, the market trading atmosphere has heated up, which is favorable for silicone adhesive companies to increase prices and shipments, and also creates a certain demand for replenishment of 107 adhesive and silicone oil. However, most silicone adhesive companies still have sufficient inventory, and the overall performance of terminal demand is weak, resulting in a slow downward transmission of growth. This has led silicone adhesive companies to adopt a cautious attitude towards procurement, mainly focusing on restocking for essential needs. Overall, the current market for 107 glue and silicone oil is optimistic in terms of cost and supply support, and companies have a strong willingness to raise prices. It is expected that in the short term, enterprises will continue to focus on stable price shipments, and the overall market will continue to operate in a relatively strong trend.
Cracking material silicone oil market: In terms of raw materials, sulfur prices continue to operate at high levels, leading to further tightening of spot supply of sulfuric acid. With the dual support of tight supply and stable downstream demand, sulfuric acid prices have generally increased by 80-100 yuan/ton, and it is expected that there will still be upward space in the future market. In terms of demand, driven by macroeconomic favorable factors, the overall demand in downstream markets has steadily rebounded, and the inquiry volume for cracking materials has increased. In the short term, the trading atmosphere in the cracking material market is good. Currently, the price of cracking material silicone oil remains at 12800-13100 yuan/ton, and the market continues to operate steadily. In terms of waste silicone gel, silicon product companies are optimistic about the future market expectations driven by rising costs and terminal demand recovery. The overall enthusiasm for production has increased, and the speed of processing burrs has also accelerated. However, cracking material enterprises still mainly rely on on-demand procurement, and their willingness to purchase raw materials is relatively weak. Coupled with the continued oversupply pattern in the waste silicone market, the situation of giving discounts in actual transactions is still quite common. At present, the raw edge to goods price of cracking materials remains at 3300-3500 yuan/ton (excluding tax). It is expected that in the short term, waste silicone recyclers will continue to focus on small order trading, and the market as a whole will continue to experience a weak consolidation trend.