Intending to explore the rise! In the past two days, essential orders have entered the site for replenishment, and a single unit in the southwest region has been undergoing maintenance. The plan is to slightly increase the price. After Monday's bidding promotion, Shandong Wind vane remained stable yesterday. Other individual factories have also narrowed their negotiation space and sent rebound signals to the middle and downstream. At present, the DMC quotation is temporarily maintained at 13400-13900 yuan/ton. After receiving the news, some areas in the middle and lower reaches may make up their positions appropriately, but they do not have high expectations for a rebound. They only believe that there is no room for a drop in current prices, and it is okay to reserve some positions in moderation.
In the short term, silicon metal has also been deadlocked for three to four months, making it difficult for individual factories to have room to exert their costs. Even if they want to win orders, they are willing but unable to do so. At present, as far as we know, many individual factories are mainly accepting pre-sale orders at low prices, with a high probability of shipment in July. The short-term spot trading price has slightly increased, and it is expected that the organic silicon market will stabilize this week, with some areas experiencing a slight increase.
Raw rubber market: This week, the bidding pattern in the raw rubber market is still dominated by the main manufacturers. Currently, the price of raw rubber remains at 14300 yuan/ton, with transaction negotiations being the main focus. From an on-site perspective, the procurement of mixed rubber enterprises is still more focused and less active, with limited orders mainly flowing to the main manufacturers. Meanwhile, Yunnan individual factories, which have been competing with major players, have recently planned to increase their prices due to equipment maintenance, and the discount rate has been reduced. However, other individual factories have no intention of bidding for raw rubber, and some of the raw rubber plants have been shut down due to reduced load.
Overall, the pricing direction of raw rubber is still focused on major manufacturers, and individual plans to explore price increases also require the cooperation of major manufacturers to have a chance. From the perspective of the entire industry chain, the actual transaction price of the mainstream raw rubber is 13900-14100 yuan/ton, which has reached the limit of profit margins and there is not much room to stimulate sales. On the contrary, as time goes by, the inventory of mixed rubber plants continues to digest, and the bearish atmosphere decreases, which may be conducive to a small increase in demand to replenish positions. This week, the raw rubber market may continue to maintain stable operation.
Mixed rubber market: Cost fluctuations are not significant, and mixed rubber cannot move. This week, the conventional hardness of mixed rubber remained at 13000-135000 yuan/ton, and the trading atmosphere in the market remains calm. Specifically, in the context of a challenging external environment, the enthusiasm for purchasing raw rubber is not high. A small portion is prepared in small quantities first, and the basic quantity is completed by the end of the month. It seems that everyone has a consensus that "buying less leads to losing less", and purchasing with room for improvement often occurs in mixed rubber enterprises. In the past two days, Southwest Rubber Factory has narrowed its profit margin, and some mixed rubber has been replenished in an appropriate amount. However, the competition for low prices in mixed rubber has been fluctuating and has never relaxed! The operational pressure is still significant.
At present, the profit margins of mixed rubber enterprises are constantly being suppressed, and transformation and upgrading are not just temporary efforts. It is necessary to conduct product research, reserve technical talents, invest in research and development equipment, and obtain various certification certificates in the early stage. This is a significant challenge for some small and medium-sized mixed rubber enterprises that are accustomed to price competition. It is expected that in the short term, the price of mixed rubber will operate weakly and steadily, with transaction negotiations being the main focus.
In terms of demand, recent feedback from the terminal market has been average, while in the home appliance sector, "6.18" has just passed, and most e-commerce and physical enterprises are still deeply trapped in the "discount promotion" bidding vortex. Although inventory has eased, the positive feedback on profit has not made a breakthrough. According to our information from the product factory, we are currently in an awkward situation where there are orders but profits are thin. Product factories mainly relying on OEM factories still exert significant pressure on price reduction.
On the whole, the first half of the year is coming to an end, and the bearish atmosphere of the market has eased slightly under the persistent "price fixing" action of the upstream, but the demand side has not been very awesome, and the new capacity has brought an indelible psychological burden to everyone. A wave of hard demand orders is expected to enter the market in the short term, but hoarding is generally cautious, and individual factories may find it difficult to achieve an increase. It is more about stimulating new orders with some small fluctuations.