Rise up! Last week, organic silicon products rebounded across the board, with an average DMC price of 13949 yuan/ton, a month on month increase of 2.9% and a year-on-year (2021) decline of 78%. It has been a continuous decline for 34 months, and the industry believes that it is time to rise. Currently, individual enterprises are driving up prices in the upstream and downstream of the industrial chain by exchanging volume for price increases. However, currently, the silicone market is in a weak recovery stage, and although global inventory replenishment is gradually being implemented, the situation of oversupply in the silicone market is difficult to change. The main contradiction in the industry is still the problem of overcapacity, which is difficult to completely solve in the short term. It seems that the only solution now is through market forces. If that's the case, it will take at least three years to resolve the supply-demand imbalance.
Monitoring data shows that as of September 7th, the mainstream spot prices for DMC in China are reported at 13700-14200 yuan/ton, for raw rubber at 15000-15300 yuan/ton, for 107 rubber at 14000-14500 yuan/ton, and for silicone oil at 15500-17000 yuan/ton. 421 # metal silicon is reported at 12500~13100 yuan/ton, and chloromethane is reported at 2150~2300 yuan/ton. In the first half of the year, the performance differentiation of several major corporate entities intensified. Luxi Chemical and Dongyue Silicon Materials have shown strong momentum, with net profits attributable to the parent company increasing by 503.72% and 134.05% year-on-year, respectively; Yunnan Energy Investment has become the biggest dark horse, achieving significant growth in multiple performance indicators, but there are also three companies whose revenue and net profit have both declined. The general manager of a single enterprise in Zhejiang said that in the second half of the development of organosilicon, the key is to diversify the application of technology. The chairman of a single enterprise in Shandong said that the pursuit of scale and homogenization of organic silicon goes against the original intention of industry development. Chairman Liu, a major downstream player, stated that enhancing the market value of organic silicon products cannot rely solely on price reductions.
Industry reports show that currently, the prosperity of industry application fields is still relatively scarce, and the positive growth rate is generally declining. Organosilicon has a wide range of applications, including sealing, bonding, lubrication, coating, surface activity, demolding, defoaming, foam suppression, waterproofing, moisture resistance, inert filling, etc. The application rate of special materials in aviation, cutting-edge technology, and military technology departments is increasing by over 50%. The median growth rate of applications in automotive, machinery, leather and paper, chemical and light industry, metal and paint, medicine and medical fields exceeds 10%. Marginal improvement in construction, electronic and electrical, and textile applications. The only industry with overall application growth and marginal improvement at the enterprise level is the silicon products sector.

DMC silicone oil giant is turning against internal competition! The key to breaking through the current industry is to combat internal competition and retain profits. Starting from mid August, several top individual enterprises fired their first shots! A significant signal has been sent that will change every fiercely competitive upstream and downstream industry chain. You should know that during economic downturns and ample production capacity, internal competition will become increasingly severe. In the past two years, the internal competition of silicone has been too intense, and everyone is living too tired and unable to make money. Everyone is deeply confused: the result of "internal competition" may be a dead end. Recently, companies such as Shinetsu, Dow, Wacker, Eken, Xin'an, and Hesheng have made adjustments and abandoned their focus on low prices. This means that manufacturers no longer have to blindly offer low prices, as long as they balance factors such as contract price and order quantity, they can make profitable business. Next, what is the general direction of anti involution? The high-level meeting also gave a clear direction: to strengthen industry self-discipline and prevent vicious competition in the form of internal competition. Strengthen the mechanism of survival of the fittest in the market and unblock the channels for the exit of outdated and inefficient production capacity. Single unit device dynamics: Consensus has been reached on reducing production and increasing prices, with an overall operating rate maintained at around 69%. Normal operating equipment: Dow, Xinyue, Wacker, Xin'an, Hubei Xingfa, Cloud Surrender Load Equipment: Hesheng, Luxi, Inner Mongolia Hengyecheng, Zhejiang Zhongtian, Hebei Sanyou, Dongyue, Inner Mongolia Xingxing, Jiangxi Xinghuo
Metal silicon market: Recently, there have been concerns in the market about the expected demand for metal silicon, which has constrained price performance. The main contract price for 421 # in China is reported at 12600-13100 yuan/ton. Industrial silicon futures continue to fluctuate and consolidate, with cost support still present. The reduction in production in Xinjiang has affected the supply of specialized metal silicon for organic silicon, and there has been little fluctuation in merchant offers. Some companies have offered small discounts for shipments, and the demand for individual enterprises is average, resulting in mediocre transactions.
DMC market: The domestic DMC market continues to rebound, with mainstream market prices fluctuating by 100-300 yuan/ton, reported at 13700-14300 yuan/ton. The order support is still acceptable, and there is basically no change in supply and demand on site. The downstream factories' procurement needs remain unchanged, and the cargo holders are flexible in handling shipments, resulting in active transactions. The current exchange rate in Guangdong region is maintained at 13750-14200 yuan/ton, and the DMC cracking material is stuck at 12500-12800 yuan/ton. The purchase price of raw materials is mostly between 4500-4700 yuan/ton.

Silicone oil market: The focus of the domestic silicone oil market remains stable, with individual grades experiencing a price increase of 100-200 yuan/ton, mainstream manufacturers reporting 15500-16900 yuan/ton, and cracking material silicone oil reporting 13500-14300 yuan/ton. The prices of top silicone oil brands in Anhui are approaching 17000 yuan/ton, with cracking material silicone oil priced at over 14000 yuan/ton, and Dow Xinyue Wacker silicone oil priced at 19700-21500 yuan/ton. On the first working day of the month, the cracking material silicone oil market performed averagely, with manufacturer quotes maintaining a stable trend and overall transactions being average.
107 glue market: The focus of the domestic 107 glue market has shifted upwards, with mainstream market prices fluctuating by 100-150 yuan/ton. It is reported that the import price of 107 glue is 15700-16500 yuan/ton, and the domestic mainstream brand price is 14100-14800 yuan/ton. The price of cracked 107 glue is quoted at 13500-13700 yuan/ton. The macro data performance is poor, and there are no favorable policies for the demand of terminal building silicone adhesive. The market performance is still acceptable, following the rebound of organic silicon bulk. The basic supply and demand of cracked 107 glue have not improved, and the atmosphere of inquiry is insufficient. The spot market price center remains stable and inventory is reduced.