The optical grade polystyrene product GPPS-550N5, independently developed by PetroChina Guangxi Petrochemical Company, achieved mass production on May 10th. The material is mainly used in LED displays, light guide plates, high-end packaging, and home appliances, and its technical indicators have reached the advanced level of similar international products. This means that a new Chinese supply source with stable mass production capabilities, independent processes, and flexible production characteristics has been added to the global optical material supply chain.
Observation of the Organic Silicon Market on Tuesday (May 12th): Costs are forcing prices of silicone chains to rise across the board, and downstream resistance to high price transactions has emerged
On Monday, driven by a surge in costs, the domestic silicone market further shifted its price focus upward. While the price of raw material silicon remains stable at a high level, the cost pressure on production enterprises has significantly increased, and the industry has generally shifted the pressure downstream, driving the continuous strengthening of the entire industry chain quotation. However, downstream acceptance of high priced goods is low, and only essential operations are maintained. New quotations have not yet been fully implemented and orders have not been accepted, resulting in a stalemate in the market with "rising quotations and average transactions".
From the perspective of price changes, there is a significant differentiation in the price increases of each product. As of May 11th, the mainstream quotation range of DMC has been raised to 14800-15900 yuan/ton, which is higher than the previous low-end. The mainstream quotation for metal silicon 421 # in the Xinjiang market remains stable at 9300-9700 yuan/ton, with strong cost support. The mainstream quotation for silicone oil remains stable at 16600-17000 yuan/ton, while the mainstream quotation for 107 adhesive is concentrated at 15500-15800 yuan/ton. At present, mainstream enterprises are maintaining low production rates and stable delivery of orders in hand. However, downstream terminals have strong resistance and tend to adopt a wait-and-see attitude, resulting in weak actual purchasing intentions. In the short term, with strong cost support, the silicone market is expected to maintain a high and narrow consolidation.
Market direction of raw rubber: Prices are rising again, highlighting the advantages of leading companies. The raw rubber market is steadily running, with leading prices maintaining a stable tone, but the spot market has once again risen by 300 yuan/ton. The current mainstream quotation for raw rubber has risen to 15800-16500 yuan/ton. The production pace of various rubber factories is stable, and the shipment and shipping of goods by holding enterprises are progressing in an orderly manner; Downstream purchases are made on a regular basis according to demand, with a smooth follow-up pace and a light negotiation atmosphere. It is worth noting that the transaction price of raw rubber at the leading factory has slightly increased. With cost advantages, there has been a surge in contract orders after the holiday, and the delivery time has been postponed to one month later. The spot trading of raw rubber from other individual factories is also booming, and there is no need to worry about not being able to sell it at the moment. Overall, the raw rubber market will mainly focus on stabilizing prices in the short term, and the expectation of further significant fluctuations is not strong.
The direction of the mixed rubber market is to observe and explore the rise, with export diversion pressure. The domestic mixed rubber market is experiencing a sideways consolidation, but many large factories have a strong mentality of raising prices and are showing obvious signs of exploring price increases. The current market price is reported at 14700-14900 yuan/ton. Upstream DMC and raw rubber fluctuated at high levels, providing strong cost support for mixed rubber (precipitation rubber, gas-phase rubber), and overall enterprise quotations remained firm. In terms of price changes, some manufacturers have attempted to raise prices, but the overall weak demand for downstream silicon products has constrained the implementation of price increases. At the same time, some rubber mixing traders rely on low-cost sources in the early stage and offer discounts below the factory price, resulting in local price inversion. However, many rubber mixing factories have ample orders for outsourcing, shifting their focus to export and easing domestic sales pressure.