Local cost decline! As everyone's bullish sentiment grew stronger, the cost metal silicon began to decrease in price. Although it was a small drop of 100 in some areas, it also reflected the weakening trend of the industrial silicon market, which is difficult to maintain under strong supply and weak demand. At the same time, with the weakening of cost support, most organic silicon companies have pressed down on their restless hearts. Under the constraint of weak demand, people dare not force a significant price increase. Currently, the mainstream quotation for DMC still remains at 12500-13500 yuan/ton, with some areas following up with 200 yuan. This week, midstream and downstream companies are in urgent need of filling orders, while upstream companies are experiencing local price increases. However, industry insiders generally believe that the market is still in a bearish environment, and everyone is closely monitoring the trading trends of leading factories. In addition, a large factory in Xinjiang is about to shut down more than 10 mining furnaces after implementing the shutdown of 30 furnaces last weekend, which will affect the monthly production of the factory by more than 70000 tons. However, due to the excess supply and demand balance of industrial silicon in the past few months, coupled with the self regulatory reduction of production in the polycrystalline silicon industry, the operating rate has also rapidly declined. Under the dual reduction of supply and demand, the balance of industrial silicon has not yet turned into a shortage. In addition, there has been a recent centralized cancellation of futures warehouse receipts, and a large number of warehouse receipts will enter the spot market. Overall, it is still difficult to reverse the supply pattern of industrial silicon market by reducing production in the short term. With the extension of production reduction time and the increase in magnitude, it is expected to solidify the bottom and usher in a real rebound for industrial silicon.
Precipitation white carbon black market: On the raw material side, the sulfuric acid market has low production and stable demand, but supply and demand have eased, and prices have increased slightly; In terms of soda ash, due to strong downstream wait-and-see sentiment, there is still resistance to high prices. This week, soda ash prices have slightly decreased, with light alkali and heavy alkali prices ranging from 1100 to 1800 yuan/ton, with a price reduction of 50 to 100 yuan. The slight fluctuation in cost has little impact on the precipitation of white carbon black. This week, the mainstream quotation for precipitation of white carbon black continues to be 6100-7000 yuan/ton. In terms of demand, there has been no increase in inquiries from silicon product companies, and the procurement situation of rubber mixing companies has not changed. The main demand continues to be rigid, and the market support for precipitated white carbon black is average. It is expected that the market for precipitated white carbon black will continue to consolidate in the short term.
Gas phase white carbon black market: On the raw material side, the price of Grade A in Shandong region fell another 300 yuan, down to 1900 yuan/ton, but the price in Northwest region remained strong at 3800 yuan/ton. The cost has weakened slightly, and some individual factories have also appropriately lowered the price of gas-phase white carbon black by 1500. This week, the northern large factory quoted 19500 yuan/ton for gas-phase white carbon black. From the trend of the entire industry chain this year, the rise and fall of gas-phase white carbon black are relatively small, which can be described as a "little red among thousands of green trees". In the environment where solid film cannot be rolled, liquid glue has become the focus of many silicone rubber layouts, especially silicone leather has become the new favorite of the industry. According to statistics, the global market size of silicone synthetic leather is about 1 billion yuan (RMB) in 2023, and it is expected to reach 7.3 billion yuan in 2030, with a compound annual growth rate (CAGR) of 34.1% from 2024 to 2030. Production is increasing, technology is constantly advancing, while prices are also declining. The market application prospects are accelerating, which is conducive to the continuous growth of liquid glue and sufficient orders from gas silicon factories! This week, the high-end price of 200 meter gas-phase white carbon black is 25000-27000 yuan/ton, and the low-end price is 18000-19500 yuan/ton. In the short term, the gas-phase white carbon black market may maintain stable operation.