Compared to the previous major cycle in 2021, the fundamentals of organic silicon are currently weak and are still in the early stages of a new bottoming cycle. New changes! Silicone oil is starting to rise! Xinyue Overseas News: Due to the overall upward trend of the market, the company is facing significant cost pressure due to its high raw material costs, and has decided to reprice multiple silicone oil brands of the company. Dealers have indicated that Xinyue has entered the inventory correction cycle and silicone oil has no longer been quoted. It is expected that Xinyue's organic silicon production value will rebound from the bottom in the third quarter and gradually grow in the future. Monitoring data shows that in July, Xinyue silicone oil reached a minimum price of 20.5 yuan/KG, while the current spot price in South China is 26.5 yuan/KG, an increase of 6000 yuan/ton.

The market price of domestic silicone oil has partially increased, and the market price of some brands has increased by 100-200 yuan/ton. Spot prices have risen under the strong trend of the market, while terminal demand support has limited the range of price increases. Traders adjust their offers and shipments accordingly, and factories have a moderate enthusiasm for receiving goods.

The market price of imported silicone oil has increased, and the market price of some brands has increased by 300-500 yuan/ton. The support for raw materials is acceptable, and traders and the three major international silicone oil factories have a strong sense of price appreciation. Overall, transactions are slightly active, with market transactions mainly in demand. Dow in the South China market reported 18.5-19.5 yuan/KG, while Wack silicone oil in the East China market reported 19.5-20.5 yuan/KG, indicating that transactions are still acceptable. Sources have revealed that a domestic giant device has recently experienced an unknown gas leakage accident, which has affected the ongoing construction of a large silicone project or delayed production until the third quarter of 2024!


According to the midterm report of A-share organic silicon downstream companies, the overall revenue and profit continued to grow rapidly in the first half of 2023, showing economies of scale and continuously improving profitability. At the same time, new orders were fully signed, which to some extent ensured the later performance. The rapid growth performance of downstream organic silicon manufacturers also reflects that the industry's terminal demand and consumption are rebounding. In addition, with the arrival of the traditional peak season of "nine gold and ten silver", major raw material manufacturers have joined forces to increase prices. With the recent implementation of real estate policies and the recovery of overseas demand, there is room for organic silicon prices to rise.


In the second half of the year, global demand for organic silicon has generally improved, and the demand after more than two years of inventory clearance has provided support for organic silicon prices. Many institutions predict that organic silicon prices will continue to rebound and fluctuate at a low level in the second half of the year, and hold a cautious and optimistic attitude towards organic silicon prices in the second half of the year. Several industry experts have expressed that from the fourth quarter of this year to 2024, the prosperity of the silicone rubber industry is expected to enter a recovery cycle. Despite some delays in early bidding, bidding for silicone rubber factories constructed in CBD in multiple domestic regions will be launched one after another. The silicone rubber bidding for the highly concerned Shenzhen Bay Super Headquarters Base and Dongguan CBD International Business Base has been launched, and domestic silicone rubber factories are expected to start a new round of expansion, Domestic large brand silicone adhesive companies continue to fulfill orders, and the localization rate of silicone adhesive in Grade A office buildings is expected to rapidly increase to around 80%, and will continue to improve in the coming years.