Suddenly in the early morning! The Federal Reserve announced a 25 basis point interest rate hike! US stocks fluctuated during the session, with a collective decline in late afternoon diving. Facing the "Black Swan" that comes at any time "Organosilicon enterprises need to be prepared for a long-term battle. On the the fourth day day of this week when Shandong monomer plants were stable, there was no obvious fluctuation in the main monomer plants, and DMC's mainstream quotation was 15800~16500 yuan/ton. Yesterday, the price of metal silicon dropped by 100~150 yuan/ton, and the quotation of 421 # metal silicon dropped to 17200~18300 yuan/ton. The profit space continued to shrink. For some monomer plants, the cost advantage also declined. Continuing to fight the price war may be a negative sum play a game.



In the short term, a stable market does not mean a halt in covert competition. At a time when there is a demand for replenishment in the downstream market, all parties are actively striving to obtain more orders. However, under cost pressure, the price can be negotiated to a small extent, so this stage is also a manifestation of the true nature of sales personnel! It is expected that DMC will maintain a stable situation within this week, and the transaction will be negotiated on a volume basis.


Silicone oil and 107 glue: In order to balance supply and demand, monomer factories are currently reducing production areas in an orderly manner. The quotation for 107 glue remains at 17000-17500 yuan/ton, with a large price difference from DMC. The purchasing sentiment for silicone glue is moderate. In order to promote transaction, local negotiations can be held at 300-400 yuan/ton. In terms of domestic silicone oil, new orders have encountered a chill in trading, and foreign trade has continued to weaken. Export orders have seriously shrunk, and silicone oil companies are not willing to cover their positions at low prices. This week, the quotation was between 19000-9500 yuan/ton, and the transaction volume negotiation space is between 200-500 yuan/ton.


Foreign brand silicone oil: Driven by the domestic decline, the price has also been lowered, with regular methyl silicone oil agents offering a bulk quotation of 21000-22500 yuan/ton. Overall, the stop of DMC's decline has shown signs of improvement in the prices of silicone oil and 107 glue, but has a moderate impact on the current trading atmosphere.


Pyrolysis feedstock silicone oil and 107 glue: The new feedstock industry is operating steadily. Pyrolysis feedstock enterprises continue to be marginalized and continue to lose money for more than a year. If they continue to lie down, they may indeed be declared out of business, but if they roll up, they will not be able to roll up monomer plants. Therefore, in this anxious state of mind, the pyrolysis feedstock plant is open and closed. However, this year, there has been some improvement. According to the disclosure yesterday, the import volume of organic silicon has increased significantly, with significant increases in Vietnam and Thailand. This should be related to the restart of cracking material plants in Southeast Asia. Some enterprises have also maintained resistance to domestic high price waste silica gel as the supply of goods in Southeast Asia is replenished. At present, the quotation for rough edges is between 5800 and 6000 yuan/ton, and silicon products are unwilling to be sold, and cracking materials are unwilling to be purchased. Therefore, waste silica gel recyclers are also discouraged. In the short term, new feedstock is still struggling to maintain stability, and the cracking feedstock market can only follow suit.