The silicone new energy track continues to explode! In July, sales of new energy vehicles in China surpassed those of gasoline vehicles for the first time. The Passenger Car Market Information Joint Branch of the China Automobile Dealers Association stated that the retail penetration rate of new energy vehicles (referring to electric and hybrid vehicles) in July was 51.1%. In July, sales of electric and hybrid vehicles in China increased by 37% year-on-year. According to data released by the China Association of Automobile Manufacturers, preliminary statistics show that from January to July 2024, the cumulative retail sales of passenger cars in the domestic market reached 11.568 million units, a year-on-year increase of 2%. Among them, in July, the retail sales of passenger cars in the domestic market were 1.729 million units, a year-on-year decrease of 2% and a month on month decrease of 2%.
Reverse, the leader has exploded in orders! According to insiders from leading companies, there has been a recent surge in orders for silicone products, with orders increasing by 30% year-on-year. At present, the Paris Olympics have come to an end. And the "popular silicon products" almost cover all aspects of the "Olympic economy". According to data from e-commerce platforms, potential hot selling products of silicone products are appearing both domestically and internationally. Once sales exceed expectations and become phenomenal products, it will mean a reversal of the silicone industry chain.
July is still in the off-season of the industry, with rubber factories maintaining inventory turnover and individual enterprise orders fluctuating, resulting in relatively stable overall demand. On Monday, another giant in Hubei raised prices by 300 yuan, and the price of silicone rebounded across the board for the first time. After stabilizing at the bottom for consecutive months from June to July, the price of leading raw rubber increased by 200 yuan, and the highest spot price rose to 14800 yuan/ton. At the same time, silicon products will be scheduled for production and maintenance in August. The silicone main chain is composed of raw rubber, mixed rubber, white carbon black, silicone oil, and silicone products. The rebound in raw rubber prices at the upstream is a signal of stabilization in the silicone industry chain (similar to the rebound of DMC's silica mine), while the production of downstream silicone products is being adjusted upwards, which means that the demand in the middle and downstream has rebounded beyond expectations. The continuous events in the industry chain indicate that the prosperity of the silicone industry chain is improving.