August is coming to an end, and Shandong's wind vane is maintaining a high price operation. Local manufacturers' DMC has risen to 13700 yuan/ton! From the on-site perspective, the inventory pressure of individual factories is not high, but the downstream lacks confidence in chasing price increases. New orders have performed well in the first and third weeks, but the stocking atmosphere at the end of the month has been poor. According to past patterns, upstream companies will still engage in some long positions in the "Golden September" market to stimulate downstream buying sentiment and release stocking demand. In terms of costs, the dismal industrial silicon futures have rebounded strongly this week, rising another 300+yesterday. As of the end of August 29th, the main contract si2411 closed at 10130 yuan, finally returning to the "ten thousand yuan account". In terms of spot goods, there has also been a boost, with leading factories raising all grades of industrial silicon by 200 yuan/ton, and 421 # silicon quoting 12500 yuan/ton; According to the Silicon Industry Branch, due to the recent power restrictions caused by high temperatures in Leshan, Sichuan, some industrial silicon manufacturers have been required to reduce their production load, resulting in an expected decrease in output. The overall production changes in the northern region are relatively small, and the overall supply in August is expected to decrease compared to July. However, according to Ji Yuanfei, an analyst at Guangfa Futures, the pattern of high supply, weak demand, and high warehouse receipts for industrial silicon has not changed significantly, and the rebound space is limited.
107 rubber and silicone oil market: Currently, DMC quotations are stable with a slight increase, providing some support for 107 rubber and silicone oil. However, downstream stocking is not strong, and 107 rubber and silicone oil companies are currently digesting orders while maintaining stable shipments. This week, the 107 rubber market quotation is 13700-14100 yuan/ton, and the silicone oil market quotation is 15200-16000 yuan/ton. In terms of orders, last week the leading silicone adhesive company issued a price increase letter, which is conducive to pushing the industry out of the low price competition quagmire and returning to a healthy competitive environment, and also has a certain positive sentiment for upstream enterprises. Currently, there are still pre-sale orders supporting silicone oil and 107 adhesive, and there is not much pressure on shipments in the short term; However, with the delivery of previous orders, if there is insufficient follow-up for the new round of orders, and the 400000 new production capacity in Shandong is expected to be released in September, there will still be significant pressure on the supply side. In terms of foreign silicone oil brands, after a slight increase in domestic silicone oil prices, it has driven foreign silicone oil orders. However, the high prices are still hindered, and agents lack the motivation to purchase goods. Currently, foreign silicone oil agents maintain a stable price range of 17500-19000 yuan/ton.
Cracking material silicone oil market: This week, the price of new materials remained stable, and the price of cracking material silicone oil also followed its rise and stabilized at 13500-14000 yuan/ton (excluding tax). On the other hand, due to the rising prices in the new material market, cracking material companies still have some advantages in low prices. Some downstream companies also tend to stock up with cracking material companies, but the increase in order volume is ultimately limited. Currently, cracking material companies still maintain a trend of shipping at a low profit and try to maintain smooth order reception. In terms of waste silicone gel, the current thinking of silicon product factories and cracking material enterprises is contradictory. Silicon product factories sell at high prices under bullish expectations, while cracking material enterprises mainly consume inventory and are more resistant to high priced raw materials. The two suddenly differ in business strategies, resulting in low price sources that are difficult for waste silicone gel recyclers to collect, and no one is willing to accept them when exploring price increases, leading to a stalemate in trading. At present, the rough edge quotation is stable at 4400-4500 yuan/ton (excluding tax), and the quotation may be adjusted according to the market trend in the future.