Exports skyrocketed by 52%! Domestic cars going global have gone crazy
According to data from the China Association of Automobile Manufacturers, China's automobile exports increased by 52.4% year-on-year in February, indicating a strong trend of going global. With the advantages of new energy and intelligence, independent brands have overturned the traditional logic of competition. Relying on a complete supply chain, AI intelligent driving technology, and charging facilities, domestic cars are globally leading in intelligent experience and cost-effectiveness. The industry believes that the technological innovation capabilities honed by independent car companies in fierce domestic competition, combined with global platforms and localization strategies, will become the key to winning overseas markets. The application demand of organosilicon in the fields of thermal management, electronic packaging, and intelligent cabin sealing of new energy vehicles will continue to expand; The rapid development of domestic cars going global will further drive the global market space for high-performance silicone materials in China.
Geopolitical conflict triggers supply chain crisis, organic silicon company CEO Li: urgent suspension of raw material supply and quotation
As the geopolitical conflict in the Middle East continues to escalate, the global energy market is standing on the edge of a cliff. According to multiple foreign media reports, Saudi Arabian oil officials recently issued a stern warning: if the current supply disruption continues until late April, international oil prices may soar above $180 per barrel.
The escalation of geopolitical conflicts has pushed up international oil prices, and the turbulence in the energy market has intensified. This cost pressure is also being transmitted along the industrial chain to the silicone industry. On March 23rd, Mr. Li, a major organic silicon manufacturer in central China, apologized for the inconvenience caused by the suspension of raw material supply due to force majeure factors and the current suspension of quotations.
Overview of Organic Silicon Market on March 23rd:
The DMC market is showing a stable to weak trend, with a domestic average price of 14000 yuan/ton remaining unchanged from the previous day. After the restart of some maintenance facilities in the north, the operating rate of individual units has rebounded. However, in late March, there was insufficient follow-up on orders from individual factories in April, and their willingness to accept orders has increased. Some manufacturers have shifted their focus of actual orders towards the low-end. Enterprises with sufficient pre-sales in certain areas have strong quotations, mainly due to delivery arrears, while downstream companies maintain a moderate purchasing strategy at low prices.
The future market price is expected to remain stable with a slight weakness, mainly driven by three factors: supply side, restart of some maintenance devices, and possible increase in April maintenance plans; In terms of market mentality, buyers and sellers continue to play games; In terms of cost, the rise in coal prices has pushed up production costs for industrial silicon, resulting in reduced profits for manufacturers. Currently, downstream purchasing intentions are low.