Low level oscillation! At present, most individual factories have seen a decline in their quotations. Yesterday, a few individual factories in Shandong did not quote in the open market and maintained a bidding price of 13000 yuan/ton. However, with the overall loosening of the market, the enthusiasm of various factories to compete for orders has also increased. As far as we know, some DMC companies have already offered discounts to core customers up to 12900 yuan/ton (net water can be withdrawn in foreign exchange).
In addition, metal silicon showed a big move again yesterday. According to a statement from the Silicon Industry Branch, major factories voluntarily lowered their prices by 600 yuan/ton yesterday, with 421 # metal silicon falling to 12300 yuan/ton; This price has already impacted the production costs of most silicon metal companies, and some manufacturers are currently planning to reduce production.
Overall, persisting in the market for more than two months will ultimately be unsustainable, and long-term stability will inevitably lead to a decline! The newly added production capacity of some individual factories is about to be put into operation, and it is inevitable to make concessions and explore ahead of time. The negative impact on the cost side further drives the trend of organic silicon bottoming out, and DMC, which has been struggling for two months with 13000, is about to fall! It is worth noting that companies that need to stock up should not blindly be bearish, as oversold prices will inevitably lead to a rebound. Last July was the lowest price, and prices continued to rise in August and September. It is expected that the recent price decline will be synchronized with stocking up, and August may usher in a turning point!
107 glue and silicone oil market: This week has entered the end of month sprint stage, and it is expected that DMC prices will fall. Some 107 glue companies have also followed suit, with current prices ranging from 13500 to 13800 yuan/ton, with some areas experiencing a drop of 100 to 200 yuan; In terms of silicone oil, due to the strong support of major manufacturers and the continuous high price of raw material silicone ether, it is difficult to adjust the quotation downwards. This week, the silicone oil quotation will continue to be 14700~15800 yuan/ton. In terms of orders, downstream silicone rubber giants have not yet entered the market, and coupled with the sharp decline in outdoor engineering under high temperature weather, the demand for construction adhesive has decreased, resulting in a decrease in the purchase volume of 107 adhesive and silicone oil.
At present, with the main manufacturers sticking to their quotes, the price difference between silicone oil and 107 glue companies is relatively small, while the bargaining power of large orders is greater, and transactions are mostly negotiated offline. It is understood that the order levels of various manufacturers are relatively balanced. Based on the above, it is still not ideal for silicone oil and 107 glue companies to accept orders. However, with weak costs and demand, the profit margin is controllable. It is expected that in the short term, 107 glue and silicone oil companies will continue to mainly digest inventory, and the market will continue to operate weakly and steadily.
Cracking material silicone oil market: The low price bidding for new materials is fierce, and cracking material enterprises remain calm as always. After all, there is no desire to bid under profit suppression. This week, the cracking material silicone oil quotation remains at 13000-13800 yuan/ton (excluding tax), and we will continue to maintain a Buddhist style and not easily participate in price wars. We will continue to operate in a low-key manner. In terms of waste silicone, the reluctance of silicon product factories to sell has loosened, and downstream cracking material companies have difficulty sourcing. The purchase of raw materials is still relatively resistant, and waste silicone recyclers are unwilling to lower prices for shipment. Therefore, the delivery is deadlocked, and the raw material quotation continues to be 4100~4500 yuan/ton (excluding tax).