Entering Thursday, the organic silicon market continued to operate steadily this week. On Tuesday, Shandongfeng slightly rebounded towards the benchmark, but the market's bullish sentiment is still not high. Downstream enterprises still focus on digesting inventory, while some low inventory enterprises seek to replenish their positions at low prices. In this situation, there is a certain difference in the actual orders received by individual factories, and it is difficult to accept orders at high prices. Overall, the current mainstream DMC quotation is between 13400-13900 yuan/ton, and the transaction price is around 13400-13500 yuan/ton. The low price remains stable and fluctuates, and it is still too early to stop the decline and rebound. In the last two days, both upstream and downstream enterprises were waiting for the main power plants to exert their efforts. Under the imbalance of supply and demand, the middle and downstream have always remained cautious in chasing prices. If we maintain stability at the end of the month and close, it may be difficult to escape the bidding market in early June.
107 glue and silicone oil market: Local DMC has rebounded slightly due to improved order acceptance, but it cannot bring inquiries for 107 glue and silicone oil. After all, there are not many new orders, and everyone still maintains the situation of negotiating to sell at a discounted price. They dare not rashly follow the trend. This week, the prices for silicone oil and 107 glue are mainly stable, with 107 glue priced at 13700-13800 yuan/ton and silicone oil priced at 14700-15800 yuan/ton.
In terms of orders, 107 rubber companies have different order volumes and delivery speeds, with some companies shipping slowly. This has led to the current focus of silicone rubber companies on urging delivery, with weak replenishment efforts, putting pressure on new orders in June. It is expected that 107 rubber companies will increase their competitive sentiment next week.
In terms of silicone oil, throughout May, silicone oil continued to decline. Under the competition of low prices, silicone oil companies have differentiated their orders, and some large factories have followed the market and received orders steadily. There is not much pressure on short-term shipments, but most small and medium-sized silicone oil companies are facing rising costs, declining products, and difficulty bearing the risk of sustained losses. Therefore, high priced shipments are not smooth, and inventory needs to be digested.
In terms of foreign silicone oil: Currently, the supply of low viscosity silicone oil from foreign investment is relatively small, and the price is relatively high. Under the impact of low prices in China, most dealers have continued to negotiate concessions for conventional methylsilicone oil, with foreign brands offering a stable price range of 18500-19000 yuan/ton for conventional methylsilicone oil.
Cracking material silicone oil market: There has been a slight increase in new materials, but the cracking material market is still without any fluctuations. After all, orders belong to others, and the price advantage of cracking material cannot be underestimated. Currently, the quotation for cracking material silicone oil is maintained at 13300-13800 yuan/ton, continuing to hold positions and wait for orders, and Foshan is accepting orders.
In terms of waste silicone, the situation of pressure from both supply and demand sides is difficult to reverse. Currently, they are still passively importing and exporting, and there is no room for active adjustment. The price of rough edges is maintained at 4000-4300 yuan/ton (excluding tax). Overall, cracking materials and waste silicone companies that are in a long-term loss situation do not have high expectations for the future. Some conservative companies express a preference for maintaining a low profit situation, so it is expected that the market will maintain weak and stable operation in the short term.
On the demand side: Although macro policies vigorously promote the policy of bulk consumption, various optimization measures promote the recovery of consumption, and are committed to releasing new vitality in consumption, there is still a game between strong expectations and weak reality. From expanding domestic demand to promotion fees, it is not achieved overnight. Downstream and terminal enterprises such as silicone adhesive companies are also slowly recovering with the demand side. During the inventory digestion stage, large orders are difficult to achieve, and small orders come and go. Inquiries are also cautious. However, there may be large silicone adhesive customers entering at the end of the month, and large orders are still being negotiated. Currently, low transaction prices are the main trend, and the market transaction atmosphere continues to operate smoothly.
Overall, in the competition of the stock market, everything on the negotiation table is possible. However, in the current calm situation, conservative buyers want to use static brakes, while stable sellers also want to take a late shot. Therefore, there is also a hidden battle between buying and selling. Nowadays, everyone is watching, but the competitive atmosphere is becoming increasingly strong. In short, the current situation of organic silicon losses has not changed. Upstream companies are supporting repairs while accelerating destocking, and downstream enterprises are also following suit. The supply-demand game is still ongoing.