In the first ten days of March, the overall silicone market showed a trend of increasing first and then decreasing. Last week, DMC continued to be weak, the downstream market opened low and went down, and the monthly increase was basically covered by the decline. Affected by the epidemic last week, trading in many regions in China stalled, and individual monomer factories first rose by 400 yuan / ton. However, orders were generally received, and fell again over the weekend. Today, DMC quotation of individual monomer factories in Shandong was 33000 yuan / ton, falling by 2000 yuan / ton for three days. Although there is no significant change in the open offer of other monomer factories, when the real order is traded, they take the initiative to reduce the price secretly, and the phenomenon of reporting high and going low is common.






This week, some regions have been unsealed, enterprises have resumed work one after another, and the trading may pick up some. However, the downstream is firm in bearish attitude, preferring to reduce production to enter the market, and the new production capacity has been further improved. The supply and demand pattern has changed. It is expected that the deadlock between the upstream and downstream will be broken soon, and a new round of bidding decline will be staged


Zhejiang region: two units operate normally and one stops; Shandong: this week, two units were in normal operation and one was in shutdown for maintenance; The new 300000 ton unit operates smoothly; North China: one unit in Inner Mongolia is in normal operation, and the new capacity load is increasing. The Hebei unit is on and off once; Central China: Jiangxi plant operates normally; Hubei plant is under maintenance in turn; Northwest China: the unit operates normally; Southwest China: the unit operates normally; Zhangjiagang single unit operates normally; This week, some units in Zhejiang were controlled by the park, and the transportation of raw materials and by-products was limited, so they were temporarily stopped. DMC has been successfully produced by the stellar device, 200000 tons will be added in Xinjiang, and the pressure at the supply end will be amplified.






107 glue Market: under the circumstances of cost support and demand constraints, 107 glue market was in a stalemate last week. The overall trading atmosphere was light and the trading volume was limited. At present, although the quotation of 107 glue monomer factory operates stably in the range of 38000-39300 yuan / ton, the actual transaction in some parts is as low as about 36000 yuan / ton. Especially under the repeated sawing in recent two weeks, the decline of local DMC has formed a drag trend, which is difficult to form an effective support for the price of 107 glue in the mainstream monomer factory. Moreover, traders and even downstream manufacturers are actively selling goods, with different profit margins and chaotic transaction prices.


From the demand side, the demand for silicone rubber was weak last week. Affected by the epidemic in Shandong, Guangdong and Zhejiang, the commencement of silicone rubber enterprises and construction sites was limited. The "golden three" failed to arrive as scheduled, and the willingness of silicone rubber manufacturers to purchase was limited. Compared with MS rubber, the profit of silicone rubber was repeatedly suppressed, and the production capacity was replaced one after another. When the peak season will come, more favorable policies are still needed. In the short term, with the gradual unsealing of some regions, the downstream inventory has also been digested. There is still a certain demand for replenishment of 107 glue, but the current price is not enough to stimulate the downstream stock. There was a strong atmosphere to fall.


Overall, the supply of manufacturers has begun to accumulate. Bidding shipments of mainstream monomer factories emerged this week. The downward trend of 107 glue will be adjusted synchronously with DMC, which does not rule out the possibility of sharp decline.


Silicone oil market: last week, the domestic silicone oil market fell. At the weekend, the manufacturer offered 42000-43000 yuan / ton, down 4.49% this week. 1、 Under the influence of public health incidents, the logistics is seriously blocked, and the confidence of both supply and demand sides is insufficient. Most of them are bargain hunting and appropriate procurement; 2、 DMC's partial decline will increase the negative factors in the downward direction of the industrial chain, and the cost side is difficult to support; 3、 Silicone oil export orders were reduced; At present, the quotation of foreign agents fell by 4.6-4.000 yuan / ton, falling by 21.4% in the wide range of domestic brands. According to our understanding, the ex factory price of some foreign brands of silicone oil has been in line with the domestic price, which will further increase the competitive pressure of silicone oil.


On the demand side, the downstream daily chemical and textile industries in some parts of China are limited to start, and in the overall bearish atmosphere, the downstream insists on purchasing on demand, has a strong willingness to prepare goods, and the trading volume is difficult to improve. In addition, with the increase of silicone oil at home and abroad in recent times, the downstream demand is hard to follow up, and the atmosphere of high price trading is gradually weakened. Individual foreign silicone oil enterprises adjust the ex factory price accordingly, and the price advantage of domestic silicone oil is weakened.


In the short term, the cost and demand are both weakened, and the high price shipment of silicone oil plants is blocked. Most of them are mainly arranging early orders. With the continuous delivery of orders at the end of the month, under the sharp decline trend of DMC, silicone oil will also follow the market, reduce the quotation with the cost and expand the profit space to receive orders.


Cracking material Market: with the further weakening of the new material market, cracking material manufacturers continue to sell goods at a profit. According to our understanding of silicone mall, the transaction price of cracking material DMC is between 29000-30000 yuan / ton (excluding tax), but the trading volume is low. In the waste silica gel market, the waste silica gel is rejected even when the cracking material is shipped at a loss. At present, the quotation of the raw edge of the waste silica gel to the cracking material factory is reduced to about 12000-12500 yuan / ton. This price is still a huge cost pressure for the cracking material plant. However, since Dongguan and Shenzhen were under closed control last week, there were few sources of waste silica gel products in the downstream and the willingness to decline was not strong. Therefore, in the short term, in the contradiction between supply and demand, cracking materials may be upside down with new materials at any time, and the operating pressure is difficult to improve.


Raw rubber Market: last week, the mainstream offer of domestic raw rubber remained stable, but there were few actual transactions. With the further decline of local DMC prices, it was meaningless to support the price of raw rubber. In addition, the recent domestic rebound in health events affected the logistics and production in some areas, and the trading level in the venue further shrank. In particular, the recent loss making shipments of rubber compounds have not been well traded, and there is a strong resistance to high priced raw rubber. Some rubber compound factories with bottomed out inventory prefer to reduce production rather than prepare goods. This week, the decline of local DMC will drive the decline of raw rubber market, and it needs a large decline to stimulate the centralized preparation of mixed rubber