According to the International Energy Agency, the global oil market is facing the most severe supply disruption in history due to the ongoing tensions in the Middle East. If shipping cannot be restored as soon as possible, the supply gap will further widen. The transportation volume of crude oil and petroleum products in the Strait of Hormuz has plummeted to an "extremely low level". Gulf countries have reduced their total daily crude oil production by at least 10 million barrels. The daily global crude oil supply is expected to plummet by approximately 8 million barrels in March.
Silicone Market Weekly Report (March 9-15): Cost driven Supply Tightening, Industry's' Small Spring 'Structural Recovery
In March of early spring, as the traditional peak demand season for "gold, silver, and four" approaches, the domestic silicone market is expected to experience a wave of emotional recovery. The first round of the "Little Spring" market, which has attracted much attention from the industry, is unfolding this year. The transaction data of the contract market and spot market have stabilized and rebounded, and market expectations are gradually recovering.
Last week (as of March 15th), the most eye-catching focus in the market was undoubtedly the top three products. Affected by the continuous emission reduction policy of individual factories, the amount of by-products has been reduced, and the overall supply of Class III has become tight. Last week, the price soared to 1500 yuan/ton, and the mainstream offer has been pushed up to 16000-16500 yuan/ton.
At the overall supply and demand level, major factories generally hold sufficient pre-sale orders, coupled with the continuous promotion of emission reduction policies, resulting in limited overall supply pressure. Under the interweaving of multiple favorable factors, individual factories have a strong willingness to raise prices. On Friday, some individual companies even adopted a strategy of closing down and not reporting, further adding to the bullish atmosphere in the market. From the perspective of specific product prices, as of March 15th, the mainstream quotation for DMC remains at 14000-14500 yuan/ton; Silicone oil quotation is 15500-16100 yuan/ton; 107 glue quotation: 14800-15100 yuan/ton; The mainstream quotation for raw rubber remains stable at 15100-15300 yuan/ton. Multiple individual companies have stated that the new prices have been updated in their internal systems and are simultaneously applicable to contract direct sales and distribution channels. This means that both long-term cooperative customers and market buyers will find it difficult to avoid the impact of this price adjustment.