Since early April, with the recent decline in organic silicon prices, leading global companies have finally been unable to withstand the downward pressure. Since August, the organic silicon industry has been experiencing continuous growth, with prices of products ranging from metal silicon and DMC to silicone oil and raw rubber starting to rise. In this context, multiple individual enterprises have suspended expansion plans for multiple projects, and have carried out "maintenance and upkeep" on some production lines, accelerating the delivery speed and extending to downstream terminals and other fields. Monitoring data shows that on August 5th, DMC transaction prices rose by 100 yuan, with mainstream prices ranging from 13000 to 13900 yuan/ton. Raw rubber prices rose by 100-200 yuan, with transactions mostly between 14100 and 14300 yuan/ton. On Monday, the leading raw rubber company restarted its limited order mode, and the industry believes that it may adjust prices at an appropriate time. A new round of organic silicon price increases may "make a comeback"
Several industry insiders have stated that as we enter the third quarter, it is expected that the overall organic silicon industry will continue to adopt the business strategy of "on-demand production" to maintain the healthy development of the industry. For the future trend of organic silicon prices, in the past three years, the supply and demand relationship in the industry has continuously improved, and the price of organic silicon has gradually fallen back to a better profit range downstream. From recent quarters, the fluctuation of organic silicon prices has gradually converged and fluctuated narrowly around a reasonable price center, demonstrating strong stability. In the long run, with the continuous optimization of the supply pattern and the stable growth of demand area, the supply and demand relationship in the industry will gradually approach a tight balance between supply and demand, and the price of organic silicon is expected to remain stable and rise annually.

As usual, starting from August, the activity of the silicone market will increase, and downstream pre holiday restocking efforts will increase, thereby driving prices further up. However, looking at the market this year, organic silicon products such as DMC have been in a trend of expanding production, with prices at a low level this year and a decline of over 14% from the highest price this year. Nevertheless, about 75% of businesses still have a pessimistic attitude towards the future market and maintain their basic needs. For the "Golden September and Silver October" market, industry insiders believe that due to overcapacity and insufficient demand, the rebound space of organic silicon prices such as DMC is limited, and the loss situation of major individual enterprises is difficult to change. Compared with last year, the condition is seriously insufficient, and at least one-third of the industry will be eliminated and withdrawn before the market can truly reverse.
In terms of gas-phase adhesive: The domestic gas-phase adhesive market is relatively weak and stable, with mainstream brand prices fluctuating by 50-100 yuan/ton, and mainstream brands reporting 19800-21500 yuan/ton. In July, the trading volume of the gas-phase adhesive market was very weak. Several gas-phase adhesive factories in Dongguan settled their prices lower, and the two major factories, Dalang and Huangjiang, lowered their factory quotations to compete for the market. The spot market prices also fell, and there were mostly empty spaces in the market, resulting in overall weak trading volume; Starting from August, the price of gas-phase adhesive stopped falling, driving the rebound of spot prices. Single manufacturers shipped well, and Xin'an raised its ex factory quotation. However, overall, the price trend of the domestic gas-phase adhesive market is weak.
In terms of sedimentation gel, the domestic sedimentation gel market is operating at a light pace. It is reported that the conventional hardness quotation is around 13500-13750 yuan/ton, and the quotation for large brands is 14300-14750 yuan/ton. Recently, the inventory of civilian silicon products factories has been partially digested, and sports silicon factories have followed up with incremental purchases without increasing prices due to the Olympic Games. The inventory pressure of individual factories has been digested, and the settlement price at the end of the month is mainly stable. Downstream demand for automotive supplies is quiet and moderate, and traders are mostly observing and trading according to the market. The focus of transactions is slightly weak, and the mentality of operators is cautious and watchful.
In terms of gas-phase white carbon black, the domestic market for gas-phase white carbon black is currently stable. The market for raw materials A and silicon tetrachloride is fluctuating, with a partial drop of 300-600 yuan. The cost support is relatively weak, and the utilization rate of polymerization capacity is not high. The market spot supply is relatively stable. Currently, the low-end price of 200 # gas-phase white carbon black is 18500-22500 yuan/ton, and the mid to high end price is 24500-29500 yuan/ton. The terminal demand is average, downstream purchases are mostly made on demand, and the market is temporarily stable.
In terms of precipitation method white carbon black: The domestic P precipitation method white carbon black market continues to remain stable, with Yuanxiang, Xinna, and Cisco adopting a unified pricing mentality, and terminal procurement intentions continuing to be in high demand. At present, the price of precipitated white carbon black for silicone rubber is 6600-7500 yuan/ton. Last week, there was no clear guidance on fundamentals, and some factories had accumulated inventory. Some brands offered a discount of 50 yuan/ton on their ex factory prices to accept orders, resulting in insufficient supply support. The market continued to be weak, and the trading pressure on Guangdong traders was difficult to release. Downstream users were cautious and bearish, and the transaction situation was difficult to be optimistic.