Entering Thursday, due to the impact of oversupply on the market, in order to promote transactions, some individual factories in Shandong opened with a price reduction of 150 yuan and DMC reported 13300 yuan/ton yesterday. Other individual factories remained stable at 13500-13900 yuan/ton in the open market, but there were also frequent private negotiations. However, slight adjustments have limited stimulation for the middle and lower reaches, and the game between the two sides is still ongoing. From a cost perspective, under the weak and stable pattern of metal silicon, transaction prices continue to loosen and decline. As individual factories have different industrial chain layouts and different attitudes towards DMC orders, Shandong and Zhejiang have successively launched online bidding. As the end of the month approaches, some middle and lower reaches have stocking plans, and individual enterprises will also show their abilities and carry out a new round of order grabbing actions.
However, at the current price, it is widely believed in the industry that it is still at the bottom stage and there is limited room for adjustment. Therefore, some midstream and downstream enterprises are waiting for the opportunity to further decline and take a moderate amount of bottom buying. It is expected that DMC prices will show a stable, moderate, and downward trend in the short term.
107 glue and silicone oil market: This week, 107 glue companies have seen relatively strong prices supported by previous orders, with mainstream quotes ranging from 13700 to 13800 yuan/ton. However, after nearly two weeks of digestion, some companies have completed more than half of their order delivery volume, and downstream companies have limited inquiries and follow-up capabilities for new orders, leading to increased shipping pressure. In addition, some 107 glue companies may follow the trend of decline, and their willingness to sell at a profit may become stronger.
In terms of silicone oil, due to the lack of significant order support, it is difficult to raise the price of silicone oil, and the price of another raw material, trimethylchlorosilane, has been continuously rising this week. Currently, the price in Shandong has risen to 18300 yuan/ton, with a price increase of 600 yuan. Under the dual pressure of high cost and low profit, the current open market price of silicone oil is 14700-15500 yuan/ton. However, the actual transaction continues to be a dark drop in shipments, and it is expected to maintain a dark drop bidding mode in the short term.
In terms of foreign silicone oil: Recently, the supply of low viscosity silicone oil from foreign brands has been tight, and the conventional viscosity has been affected by domestic low prices, which has hindered the high price shipments of agents. Currently, the quotation for conventional viscosity of methyl silicone oil is between 18500 and 19000 yuan/ton.
Cracking material silicone oil market: The price of new materials increased this week, and cracking material enterprises were operating at a stable price. The quotation for cracking material silicone oil is 13300-13800 yuan/ton (excluding tax). From the current price point of view, there is a slight price difference advantage with the new material silicone oil. According to our understanding, many cracking material enterprises in Hubei Province were in a semi shutdown state in May, with moderate cost and supply pressure, but the demand was not awesome. After the long-term low price of new materials, downstream enterprises are not sensitive to the slight price difference advantage of cracking materials, and most enterprises still purchase new materials.
In terms of waste silicone, due to the low price of raw materials from silicon product companies, the operating rate of cracking material companies continues to decline, and the purchasing sentiment is not good. Therefore, waste silicone recyclers can only follow the Buddha system and passively import and export goods. Currently, the quotation for rough edges is maintained at 4000-4300 yuan/ton (excluding tax). Overall, the current waste silicone and cracking material enterprises are operating in a stalemate, with weak and stable operations being the main focus in the short term.