Yesterday was another stable day! From the current market situation, downstream enterprises have seen a slight increase in inquiry volume and improvement in low-priced transactions under the stimulation of local DMC downturn the day before yesterday. However, they dare not have too high expectations for a rebound. In addition, the terminal demand is average, and the phased destocking is not smooth, so the increase in new order volume is limited. While most other monomer plants also understand that the demand side is not very awesome at present, but under the pressure of the cost side, the current price is also basically on the floor friction, especially in the absence of obvious price adjustment action by the major manufacturers, maintain more attention and less action. Yesterday, DMC temporarily stabilized at 13400~13900 yuan/ton, and the mainstream transaction price was 13300~13500 yuan/ton, with a small negative decline. It is expected that the market will maintain a weak shock operation.
Precipitated silica market: On the raw material side, the supply and demand of sulfuric acid and soda ash markets were relatively balanced this week, and prices remained stable, with little impact on precipitated silica. Currently, the quotation for precipitated silica for silicone rubber is 6300-7000 yuan/ton, and orders are still constrained by demand. Specifically, due to the stable orders of terminal and silicon product enterprises, they maintain a rigid demand for mixed rubber procurement, resulting in smooth transactions. However, mixed rubber enterprises have sufficient inventory and are actively shipping under limited order quantities. They are not strong in purchasing precipitated white carbon black and tend to follow the market trend. Overall, the market support for precipitated white carbon black is limited, and shipments are mainly focused on maintaining fixed customers. It is expected that the market will remain stable in the short term.
Gas phase white carbon black market: On the raw material side, the market for A and silicon tetrachloride remained stable this Monday, with prices continuing to remain stable. There is still support for the cost of gas silicon. Currently, gas silicon enterprises continue to differentiate due to different costs, with high-end quotes of 24000-26000 yuan/ton for gas-phase white carbon black at a price of 200 yuan per ton and low-end quotes of 18000-20000 yuan/ton. In terms of demand, downstream industries such as silicone rubber and coatings have low activity, and the procurement of silicone gas is average. However, there is a significant difference in the quality of silicone gas, and there are certain technical barriers in some fields. As far as we know, multiple silicone companies have increased their layout in the liquid and gas-phase adhesive markets this year, and their demand for silicone gas has increased. Some medium to high quality silicone gas companies have reported smooth order acceptance, with a scheduling base exceeding one month. In the short term, with the support of strong prices from major factories in the northwest, the market for gas-phase white carbon black is stable.
Overall, in the context of profit difficulties faced by both upstream and downstream industrial chains, people's attention to price adjustments is constantly decreasing. If they want to rebound, no one will follow suit, and if they want to stimulate a decline, they will find it difficult to bear losses. However, newly opened production capacity is still undergoing trial production according to plan. Currently, the ramp up of new production capacity is still slow, and the remaining pressure is deeply imprinted in everyone's hearts. In the short term, they will be constrained by the stagnant operation of cost grinding. In the long run, as the accumulation of inventory increases, it may force some enterprises to continue on the path of "exchanging price for quantity".
In short, the market is being tested, and both upstream and downstream are pulling at their limits. The game is still inconclusive, and it is expected that the market will continue to operate in a stalemate in the short term, with small negotiations for partial trading and concessions.