Localized increase! As we entered Thursday, we saw a bullish atmosphere gradually rising in the market, but downstream companies were more cautious and less active, and the actual stocking action had not been carried out. Therefore, some individual factories could not hold back. Yesterday, they first increased by 200 yuan, with DMC quoted at 13000 yuan/ton, while other individual factories continued to maintain stable quotes at 12500~13500 yuan/ton, waiting for feedback from the "leading army". If downstream companies respond to stocking up or if individual factories follow up, they will continue to observe market trends.
In terms of demand, silicone rubber and silicone rubber enterprises are currently deeply suppressed by terminal and profit margins, and have not had a significant year-end stocking layout. It is expected that they will not participate too much in the upstream price game, so the upstream and downstream are also showing caution. In addition, the rebound in futures triggered by the production reduction of leading industrial silicon was just a flash in the pan. Yesterday, the main force of industrial silicon futures fell more than 3% within the day, with SI2501 closing at 11930, a sharp drop of 385 yuan/ton. The spot price is stable, and the fundamentals still show a weak supply-demand situation. Currently, the price of 421 # silicon in East China is between 12000-12300 yuan/ton. The weakening of positive support has affected confidence in rising prices, so the trading range in the future is limited. It is expected that the DMC market will continue to operate steadily this week.
Localized increase! As we entered Thursday, we saw a bullish atmosphere gradually rising in the market, but downstream companies were more cautious and less active, and the actual stocking action had not been carried out. Therefore, some individual factories could not hold back. Yesterday, they first increased by 200 yuan, with DMC quoted at 13000 yuan/ton, while other individual factories continued to maintain stable quotes at 12500~13500 yuan/ton, waiting for feedback from the "leading army". If downstream companies respond to stocking up or if individual factories follow up, they will continue to observe market trends.
In terms of demand, silicone rubber and silicone rubber enterprises are currently deeply suppressed by terminal and profit margins, and have not had a significant year-end stocking layout. It is expected that they will not participate too much in the upstream price game, so the upstream and downstream are also showing caution. In addition, the rebound in futures triggered by the production reduction of leading industrial silicon was just a flash in the pan. Yesterday, the main force of industrial silicon futures fell more than 3% within the day, with SI2501 closing at 11930, a sharp drop of 385 yuan/ton. The spot price is stable, and the fundamentals still show a weak supply-demand situation. Currently, the price of 421 # silicon in East China is between 12000-12300 yuan/ton. The weakening of positive support has affected confidence in rising prices, so the trading range in the future is limited. It is expected that the DMC market will continue to operate steadily this week.
Cracking material silicone oil market: New materials remain stable, and cracking material enterprises also maintain low-key operations. This week, the price of cracking material silicone oil is 12300~13500 yuan/ton (excluding tax). At present, the progress of outdoor construction by downstream enterprises is slow, and there is a lack of motivation in procurement. It is also difficult for cracking material enterprises to achieve results by offering discounts, and trading remains sluggish. In the short term, the market will continue to be dominated by Buddhist style operations.
In terms of waste silicone, the large difference in import and export prices has become a difficult problem for waste silicone recyclers, and both silicone product factories and cracking material enterprises are not easily swayed by prices. Waste silicone recyclers can only get by with it, with raw edge prices maintained at 4000-4100 yuan/ton (excluding tax). However, some waste silicone recyclers still have strong bullish intentions for the year ahead, so there will be some layout at the end of the year. Overall, the weak demand in December remains unchanged, and cracking material plants and waste silica gel recyclers do not have the confidence to confront upstream and downstream head-on. The market may continue to operate weakly.