The organic silicon concept index rebounded strongly yesterday afternoon, rising 2.91%, ending six weeks of continuous decline; Collective frenzy of stock prices of industry related listed companies; Specifically, Yuanxiang rose 5.2%, Jinyinhe rose 4.82%, Xingxing rose 4.29%, Chengguang rose 4.09%, Jitai rose 3.67%, and Dongyue rose 3%. 49%, Tianci up 3.43%, Xin'an up 3.3%, Runhe up 2.68%, Hesheng up 2.53%, etc., with transactions exceeding 2 billion yuan.
Monitoring data shows that multiple individual enterprises have raised the prices of various organic silicon products, with a price increase of 50-100 yuan/ton. Some mainstream product prices have increased by more than 300 yuan/ton compared to the same period last month. The activity of the spot market has improved, and there has been a significant increase in speculation and spot demand. Some large demand players have slightly increased their volume. As of June 26th, DMC transactions were mostly between 13500-13800 yuan/ton, raw rubber transactions were mostly between 14300-14700 yuan/ton, and 107 rubber transactions were mostly between 13800-14500 yuan/ton. In the second half of the year, the growth rate of new production capacity is expected to be higher than that of the first half. The slow recovery of traditional demand sectors collides with the increase in demand in emerging sectors. It is expected that the overall growth rate on the demand side is lower than the level of production capacity growth. On the premise of repairing profits and reducing losses, individual factories may balance supply and demand by reducing production and shutdowns. It is expected that the organic silicon market will gradually rebound after reaching a bottom in the second half of the year.
Market insiders believe that due to the decline in overseas inventory and the recovery of multiple domestic application industries, as well as the joint clearance of inventory by enterprises since the first half of the year, the overall supply and demand relationship of the domestic organic silicon industry has improved, and the industry's prosperity is gradually recovering. Mr. Wu believes that in the organic silicon industry, if we want to compete, we need to compare technology, the long-term value that technology brings, the sustainable value, and the differentiated technical performance. This is where we need to compete. It's not the price at the time of purchase, it's the entire product lifecycle of the roll, it's the quality of the roll, the roll technology.
This year, the market situation for functional special organic silicon is good. With the support of leading manufacturers in fields such as artificial intelligence, new energy vehicles, consumer electronics, and industrial robots, it is expected that functional organic silicon products will enter the first year of small-scale mass production in 2024, and the progress of domestic substitution industrialization is expected to exceed expectations. As an area where domestic silicone manufacturers can deeply participate in the global AI wave, there are great opportunities for the development of domestic substitute manufacturers.
On June 26th, Runhe Materials stated on the investor interaction platform that the company is a national high-tech enterprise specializing in the research and development, production, sales, and application services of organic silicon deep processing products and textile printing and dyeing auxiliary products. The company's products are organic silicon deep processing products and textile printing and dyeing auxiliaries. The company's products mainly include textile chemicals (organic silicon finishing agents, dyeing aids, pre-treatment agents, non silicon finishing agents, etc.), electronics/new energy (electronic grade vinyl silicone oil, thermal management materials, power insulation silicone rubber, etc.), agricultural chemical additives (agricultural organic silicon synergists, defoamers, etc.), personal care/medical/medical aesthetics (organic silicon elastomers, personal care modified silicone oil, volatile silicone oil, film-forming agents, etc.), industrial/additives (release agents, leveling agents, etc.), and intermediates/silicone oil.
BASF announced on the 24th that it will no longer further evaluate the possibility of building a nickel cobalt refining complex in Wada Bay, Indonesia, and will cease all ongoing negotiations. In 2020, BASF signed an agreement with the French mining company Eramet to jointly evaluate the potential of the project, with an estimated investment of up to $2.6 billion. BASF stated that significant changes have occurred in the global nickel market since the project was conceived, and the company believes it is not necessary to make such a large-scale investment again to ensure the metal supply of its battery materials business is flexible.
Aica Kogyo, a large Japanese building materials company, plans to double the production capacity of adhesives used for automotive headlights in Asia. In 2025, one production line will be added to factories in China and Thailand respectively. The company's adhesive is easy to peel off and can easily separate components. The recycling and reuse regulations for automotive parts set by the European Union (EU) and other countries are becoming increasingly strict. In this situation, the company will meet the needs of Japanese domestic and foreign component manufacturers entering Asia. The total investment is 700 million yen. The new production line in China will be put into operation in July 2025, and the new production line in Thailand will be put into operation in November 2025.
In May 2024, overall new car sales in Europe decreased by 2.7% year-on-year, but the number of car companies achieving growth still exceeded those with declining sales. The sales growth of 43 automotive brands in Europe exceeded the overall performance of the market, while sales of 32 brands declined. Among them, 10 car manufacturers, including China's Xiaopeng, Geely Krypton, and American electric vehicle manufacturer Lucid, have achieved triple digit or higher sales growth. Toyota surpassed BMW in May to become the second highest selling car brand in Europe, second only to the Volkswagen brand.