Big stability and small movements! After a small flash of upward momentum, the market entered a period of correction. After phased replenishment of positions in the middle and lower reaches, inventory was replenished, and stocking sentiment changed from strong to weak. The upward turnover was in the stage of digesting inventory, and the upward momentum subsided. Supported by pre-sale orders, individual factories maintain stable quotations. On Tuesday, Zhongtian launched a preferential auction, which put a slight pressure on the market price atmosphere. However, according to our understanding from the manufacturer, the auction price is still awesome under the registration preference and delivery commitment, with DMC up to 13700 yuan/ton (including tax on water purification acceptance), while Shandong vane gave a small margin of 100+on Wednesday afternoon, receiving orders of about 600 tons; However, with the main powerhouse DMC operating at a high posture of 13900, it has given the market some confidence in stabilizing prices, and local loosening has not caused too much bearish atmosphere.
This week, there are still ten days left until the end of the month, and the mid month stage stocking is mainly for immediate replenishment. Companies planning to stock up are still waiting for the end of the month. However, everyone is very clear that the possibility of a sharp drop in prices is low. Although individual factories have gained considerable orders after rebounding from the oversold, their actual profit margin has only transitioned from a loss making "deep water zone" to a "shallow water zone", and the operating pressure is still high. Therefore, it is expected that not everyone can obtain the ideal bottom price. Everyone wants to prepare for a big wave at the bottom price, and individual factories will also be closed at any time. As far as we know, a small number of companies are negotiating to exchange quantity for price and enter the market in small steps. Last Friday, the policy fully opened up its firepower on the real estate market and launched a series of big moves, inevitably sparking a bullish atmosphere for organic silicon companies in the future. If, as expected by everyone at the end of the month, there will be another wave of price shock from upstream, will you actively enter the market and take the bottom? Welcome everyone to communicate and analyze with us
107 adhesive market: Last week, the domestic 107 adhesive market remained relatively stable. As of May 19th, the domestic 107 glue market quoted 13700-13800 yuan/ton. The cost side DMC market has remained stable with minor fluctuations, and the overall market support is still sufficient. In terms of supply, the inventory of enterprises in the early stage has been partially digested, but it is expected that the capacity load will rebound in the future. The main manufacturers were mainly busy delivering pre-sale orders last week, and the inventory pressure is not high at the moment, while prices remain stable. However, with the gradual disappearance of previous order dividends, market supply pressure may gradually increase again, and the price boosting effect on 107 glue is weakening. Some manufacturers have shown signs of price loosening.
On the demand side of silicone adhesive: Last week, most enterprises maintained on-demand procurement, with a slight decline in stock levels, and consumption levels continued the previous weak trend. Silicone adhesive is currently mainly focused on inventory digestion issues, and dealers have insufficient confidence in the off-season market. Some merchants have adopted discount strategies to promote sales. In the field of photovoltaic adhesive, the overall supply-demand relationship in the component process remains stable, and the demand for photovoltaic adhesive market is also showing a stable trend.
In terms of policies, the real estate market has once again intensified, officially announcing the implementation of four major favorable policies aimed at stimulating the development of the real estate market. The introduction of the new policy has brought new development opportunities to the construction industry. For the organic silicon market, although the supply side pressure has rebounded in the short term and downstream demand is weak, in the long run, with the stimulation of the real estate policy, the demand in the construction industry is expected to be boosted, which will have a positive driving effect on the organic silicon market.
In summary, with the decrease in stocking intensity, the expectation of supply pressure rebounding gradually strengthens, and it is expected that the 107 rubber market may weaken this week.