As the first week of 2023 is about to pass, the silicone market is still surging and flowing. Today, DMC's open price remains stable at 16300~17000 yuan/ton. However, under the pressure of stock accumulation, private profit concessions are common. It is understood that the actual transaction price of DMC of major monomer plants is 16500~16800 yuan/ton, which is basically close to the low-end quotation based on freight and settlement methods. After this week, the middle and downstream enterprises will stop working one after another, and the single plant is no exception this year. In January, there is a plan to reduce production and load.



In the short term, although the price stabilization mentality of the monomer plants is still in place, the market bearish mood has not dissipated. Due to the recent slump in polysilicon, the weakening expectation of industrial silicon has intensified. Although the profits of the monomer plants have been repaired, in the situation of imbalance between supply and demand, the cost can only be recovered, and the profit margin cannot be expected too much. So is the current DMC floor price? We also need to focus on the future price trend of silicon metal.


Silicone oil and 107 glue markets: DMC is steadily declining, and 107 glue naturally keeps the same pace. 107 glue is quoted at 17000-17300 yuan/ton, with a profit margin of 200-300 yuan/ton when trading, while silicone oil is kept at 19000-20000 yuan/ton. The market trading is tepid. Since silicone oil enterprises have made adequate stock at the end of last month, they are only willing to enter at a bargain when returning from New Year's Day. On the demand side, the downstream silicone glue market is not "buying enough". Although the positive signals of macro policies are released, they cannot be transmitted to the market in the short term. Silicone glue enterprises do not have any expectations for February. At present, they are more concerned with payment collection than hoarding.


Foreign silicone oil: The demand is on the way, and the foreign silicone oil with increased output can not escape the inhibition of demand. While pressing the manufacturer to reduce the price, the agent has to face the difficulties at the sales side. At present, the price of foreign brand silicone oil is 21000~22000 yuan/ton in bulk, and the whole cabinet can be negotiated.


Cracking material silicone oil and 107 glue: the new material operates at a low level, and the waste silica gel recycler also gives up price adjustment due to the "holiday tide", and the rough edge price remains at 6200~6500 yuan/ton. However, the sales and investment of the cracking materials market has always been cold. After all, the procurement is not active and the shipment is limited. The cracking materials enterprises are now focused on the post festival layout. Some enterprises announced a holiday two months ago. At present, the price of silicone oil for cracking materials excluding tax is 16500~16800 yuan/ton.


Up to now, judging from the high price inventory of waste silica gel recyclers and the continued weakness of new materials, it is difficult to reverse the upside down situation of cracking materials in the short term. However, one thing is that the irrational speculation of waste silica gel will be significantly reduced, and from the perspective of the operating rate of cracking materials in the past three months, the supply of waste silica gel is no longer in short supply, but it takes courage to cut meat at a high level, which is not a last resort. Waste silica gel recyclers prefer to stick to the high price inventory rather than promote sales and clearance. To sum up, the road to nirvana and rebirth of the cracking material market still has a long way to go.