Small rise exploration continues to stabilize! In the traditional off-season, the rebound has not caused much water splash, and there has been no significant change in prices. From the perspective of rebound operations, it is more determined by individual factories to hold onto the bottom line. At present, major manufacturers have not made any price adjustments, and the market is slightly lacking in confidence to keep up with the rise. Currently, DMC's quotation remains stable at 13500-13900 yuan/ton.
However, the trading side fluctuated more significantly this week, with industrial silicon futures falling continuously on June 24th and 25th. On the 24th, the main contract fell by more than 5% to 11400 yuan/ton, and on the 25th, it fell to 11305 yuan/ton, continuously breaking new lows since the futures were listed. In terms of the spot market, it is also affected by its fluctuations. The price of 421 # metal silicon at Huangpu Port has dropped to 13500-13800 yuan/ton, a small drop of 100. At the current important node of DMC's rise, there is undoubtedly a slight drag risk. If individual factories can firm their quotations, a decrease in costs will also be beneficial for them to repair their profit margins.
Overall, cost fluctuations are a double-edged sword, with both positive and negative effects. Individual factories are also weighing the pros and cons in a wait-and-see manner, trading cautiously, and it is expected that the market will remain stable with minor fluctuations in the short term.
Raw rubber market: This week, the price of raw rubber remained unchanged at 14300 yuan/ton under the leadership of major manufacturers. Under the constraint of demand, the market remained unmoved by the partial increase in DMC and has no intention of following up. At present, most rubber companies are limited by their profit margins and unable to make price concessions. Moreover, with the support of AB type discounts, mixed rubber orders are more focused on major manufacturers. At present, major factories are still delivering pre-sale orders, and the advantage of accepting orders has been maintained.
Starting from the wave of bottoming out in May, although downstream mixed rubber has continued to be bearish, with the stability maintenance in the past two months, the mentality of various enterprises has changed. First, complete the contract volume, and then prepare if it falls in the future. The phenomenon of excessive hoarding is still cautious, and some rubber factories have not received orders well. They can only start from their own production capacity and take a step back to reduce production and burden. At the end of the month, there is no hope of a decline, and some unfinished purchases may release a wave. The orders of major manufacturers will continue to follow up, and the probability of maintaining stability is also expected to increase.
Mixed rubber market: This week, raw rubber remained stable, and mixed rubber enterprises were restricted in their operations, especially those accustomed to making money through market fluctuations. While costs remained unchanged, low price competition continued, cutting only their own profits. If it continues to remain stable, some mixed rubber enterprises with tight funds and undifferentiated products may be accelerated to reshuffle and be eliminated. This week, the quotation for conventional hardness mixed rubber is 13000-13500 yuan/ton, and the actual transaction yield varies.
At present, conventional mixed rubber has been rolled out of the sky, and liquid rubber has become an important layout direction for many mixed rubber enterprises. The price competition for ordinary liquid rubber is also becoming increasingly fierce. However, after completing the liquid adhesive two-color training course last week, the editor found that it was precisely this cruel internal competition that led many product factories to accelerate their transition to liquid adhesive products. From conventional to special liquid products, their acceptance and proportion in the market are gradually increasing. As supporting product equipment, molds, and auxiliary material suppliers, they are also actively cooperating with silicon product factories to take a new stage of development.
Looking ahead, the reshuffle of mixed rubber in the second half of the year may become more prominent, and transformation and upgrading are inevitable trends. For mixed rubber enterprises with technology, funds, and differentiated products, the future development space is still full of hope. There is a recent news that is worth paying close attention to—— State Grid Leading the Way in Joining the Power System and Organosilicon Industry Chain Action
On June 19th, China Electric Power Research Institute, a subsidiary of State Grid Corporation of China, recently joined forces with more than 40 units, including specialized, refined, and innovative "little giant" enterprises, manufacturing industry champions, universities, and research institutes, to launch a new power system and organic silicon industry integration and development chain action.
Chen Guoping, Deputy General Manager of State Grid of China, said that the new power system is an efficient aerial "highway network" for delivering clean energy. The construction of this network cannot be separated from a large amount of silicon-based materials, such as photovoltaic panels, smart meters, insulators, etc., all of which are large users of silicon.
Gao Keli, Executive Vice President of China Electric Power Research Institute, stated that the Chain Action is committed to promoting technological breakthroughs in domestic electrical materials and equipment in new fields such as low energy consumption, long service life, and recyclability. It fully shares the national key laboratory of power grid environmental protection under the State Grid, and forms a green and low-carbon power equipment research and production integration consortium. It is expected that research and development investment and industrial investment will drive over 100 billion yuan.
Overall, although there has been a rebound, the supply and demand pattern has not improved. The upstream has suffered losses to the bottom line and is unwilling to move. Conventional products in the middle and lower reaches can only become more and more inward bound with the continuous increase of individual factories. However, the application of organic silicon is still widespread, and the power grid is a point of explosive demand for high-temperature adhesives. Some cross-border applications also need to be developed. Only by grasping the pain points of customer needs, winning customer trust and reputation, can we have a place in the increasingly competitive market.