The May Day holiday has entered a three-day countdown, and the silicone market has fully entered the pre holiday stocking rhythm. From the supply side, the industry's self-discipline in emission reduction has maintained the overall operating rate at a medium low level, forming a tight and balanced supply situation; Most individual factory pre-sale orders have been scheduled until mid May, and spot circulation is tight.
Yesterday, a sudden accident occurred in a single factory, which quickly caused a screen to appear in the silicone ring. According to our preliminary understanding, it was a fire in the packaging workshop, which was quickly extinguished and had no impact on the equipment. However, in the already tight supply-demand situation, this news still stirred up a wave of panic in the market: some individual factories temporarily closed down and watched, while mid to downstream enterprises with already low inventory quickly heated up their stocking sentiment. As the impact of the accident gradually becomes clearer, market sentiment has calmed down. From the perspective of demand performance, the current mentality of middle and downstream enterprises is complex: on the one hand, they are concerned about the continuous rise in raw material prices and cautious in pursuing higher prices; On the other hand, facing the urgent need to replenish inventory before the holiday, we have to actively enter the market for procurement. The market presents a typical feature of "worrying while taking goods", with steady increase in demand transactions, but large-scale speculative stocking has not yet emerged. Overall, the signal of price increase before the holiday has been clear. Last week, DMC quotations have comprehensively impacted 15000+, especially with the abnormal shortage of by-products such as Class A and Class III, which has driven a new round of price increase for related products. As far as we know, the bidding price of Grade III has skyrocketed to 27000 last week, driving the price of silicon ether towards the 40000 mark.