In December, there was a major news on the cost side that the leading factory planned to shut down 30 industrial silicon ore furnaces on the evening of November 29th. (Click on the link: Breaking! Hesheng closed down! Reduce production!). This news immediately attracted widespread market attention and is expected to affect monthly production of over 60000 tons. At the same time, Sichuan and Yunnan regions have entered a dry season, and metal silicon enterprises are facing high production costs and production shutdowns and reductions. It is expected that the supply of industrial silicon will significantly decrease. Stimulated by the "good news", industrial silicon futures surged last Friday, with the main contract rising 425 yuan/ton and closing at 12405 yuan/ton. At present, leading manufacturers of silicon metal are still in a closed state, further deepening the market's atmosphere of exploring price increases, while organic silicon is in a dilemma of weak stability. This wave of production reduction and rebound of silicon metal injects a strong shot in the arm for individual factories to raise prices. In the last month of 2024, a new round of market trends is about to unfold
107 glue market: In November, the 107 glue market showed a downward trend. As of November 31st, the mainstream price of 107 glue was 13300~13700 yuan/ton; The average price in November was 13685 yuan/ton, a decrease of 2.66% compared to the previous month and a decrease of 9.04% compared to the same period last year; On the cost side, both DMC and linear systems operated steadily last week, with stable support. On the supply side, the current operating rate of the 107 glue equipment in major monomer factories remains stable. With the significant reduction of 107 glue orders by leading factories in late November, a wave of core large-scale orders have been obtained, resulting in a contraction of 107 glue orders from other monomer factories and facing certain inventory pressure. Last week, active negotiations were made for shipment, but the progress of terminal demand was slow, and the short-term positive driving effect of downstream low-priced procurement was not obvious, leading to a low intention to receive goods.
Silicone adhesive demand side: In the construction adhesive market, as the national temperature cools down, the demand for construction adhesive is gradually slowing down. In some areas, construction and infrastructure projects have started to decline, and the demand for sealant construction has sharply decreased due to weakened demand in the construction market. The terminal demand is weak, and the inventory of enterprises continues to slowly increase. The operating rate of silicone adhesive manufacturers is declining, and their enthusiasm for purchasing 107 adhesive raw materials is not good. They only maintain basic demand for goods, and the market trading atmosphere is relatively quiet.
Silicone oil market: In November, the domestic silicone oil market operated weakly. As of November 30th, the mainstream price of silicone oil was 14800~15500 yuan/ton, with an average price of 15574.44 yuan/ton in November, a decrease of 2.57% compared to the previous month and a decrease of 4.97% compared to the same period last year. On the cost side, last week DMC and linear systems both operated steadily, and the price of silicon ether did not change much, indicating stable cost support. On the supply side, leading factories continue to lead the low-priced silicone oil market after the decline, while small and medium-sized silicone oil manufacturers focus on the high-quality, customized, and service-oriented silicone oil market. There is still some room for price difference, and the cost of small and medium-sized manufacturers is slightly higher. Therefore, the bidding sentiment in the market is relatively limited, and the willingness to raise prices is strong.