It's the weekend again, and the organic silicon market has remained stable this week, with some areas experiencing a slight increase. On the raw material side, the industrial silicon market has continued to fluctuate. In recent months, the main contract price has been at a key point of 12000. Once it falls below, it quickly rebounds. Yesterday, the closing price of the main contract si2409 was 12055 yuan/ton, a slight increase of 80%. However, the spot market transactions were sluggish, and the gradual resumption of production on the supply side has led to a general destocking of metal silicon. Currently, the price of 421 # metal silicon remains stable. In the short term, the cost side remains stagnant, and individual factories have strong resistance to falling prices.
In terms of demand, currently the middle and lower reaches are not optimistic about exploring price increases, and the actual market transactions are still mainly at low prices, and it is not clear whether to accept orders at high prices. From this week's perspective, several DMC companies in Shandong and North China have received orders well, and silicone oil companies have a small wave of urgent needs to replenish their positions. With the release of slight upward information from 107 glue, it is not ruled out that manufacturers may slightly rebound by one or two hundred in a market where there is no room for decline for middle and downstream enterprises. Therefore, many middle and downstream enterprises have a moderate amount of stock.
Overall, the current supply and demand side continues to operate weakly, and the loss making market has not substantially eased. Both upstream and downstream operations are cautious, and the continuity of orders is being tested!
Precipitated white carbon black market: On the raw material side, the sulfuric acid market continues to remain stable. In terms of pure alkali, due to the continuous high production of enterprises and limited downstream demand, and the exacerbation of supply-demand imbalance, prices have fallen. This week, domestic light alkali prices were priced at 1850-2350 yuan/ton, while heavy alkali prices were priced at 1900-2500 yuan/ton, a decrease of 100%. The fluctuation of precipitated white carbon black costs is limited.
In terms of demand, mixed rubber enterprises have abundant inventory, and some enterprises are under high financial pressure. White carbon black enterprises are also cautious in sales, so competition with strong major customers is fierce. In this situation, the price of precipitated white carbon black is basically difficult to support upward. Currently, the quotation for precipitated white carbon black for silicone rubber is still maintained at 6300-7000 yuan/ton, and it is expected that the market will continue to operate weakly and steadily in the short term.
Gas phase white carbon black market: The price of raw material silicon tetrachloride remained stable this week, while the price of methyltrichlorosilane decreased slightly in a situation of oversupply. The first tier price in Shandong region was quoted at 2450 yuan/ton, a decrease of 200 yuan this week. The overall cost has weakened, but the impact on gas phase white carbon black is not significant. Currently, the high-end price of 200 yuan/ton is 24000-26000 yuan/ton, while the low-end price is 18000-2000 yuan/ton.
On the demand side, the downstream silicone rubber market orders have relatively eased this week. Some high-quality silicone companies have stable orders and smooth shipments, while silicone companies with relatively average quality have also maintained stable shipments under the price support of large factories in the northwest. It is expected that the gas-phase white carbon black market will maintain a consolidation operation.
Overall, currently there is a mix of long and short positions on the market, and during the traditional off-season of demand, it is difficult for terminals to have high demand trends. However, the upstream losses cannot be alleviated, and price wars cannot be fought. In the past month, the adjustment range has only been between 100-300. Most midstream and downstream enterprises have been hoping for a decline from the beginning to now following the market and stocking up in small quantities. Overall, the stalemate game has been ongoing for a month, and the trading atmosphere this week is still acceptable. However, there has not been much change in the reduction of negative production capacity, making it difficult to quickly balance supply and demand. Being able to maintain "stable happiness" is also considered positive feedback.