In 2025, it is expected that the sales of silicone leather will increase by 37%, and the sales volume will significantly increase by 21%. This growth trend will correspondingly drive a 21% increase in demand for liquid silicone. This significant growth is mainly attributed to the sustained high demand in the fields of footwear, clothing, luggage, baby products, automotive interiors, outdoor equipment, sports equipment, and electronic 3C products. At present, nearly 13 companies worldwide are actively expanding into the silicone leather market, and the basic form of the industrial chain has begun to emerge. However, the silicone leather that has already been industrialized is still in the small-scale trial production stage and faces multiple challenges such as cost and technology. It is expected to take another 3 to 5 years to achieve large-scale production.
This week, downstream demand side enterprises closely follow market trends and actively carry out inventory replenishment actions. Each major unit factory has successively obtained a large number of pre-sale contract orders, and their production enthusiasm has significantly increased. As of December 26th, according to data from Luxi Hydrolysis Products Network, the price of hydrolysis products is 12300 yuan/ton, the mainstream spot price of DMC is between 13000 and 13800 yuan/ton, the mainstream spot price of raw rubber is between 14300 and 14500 yuan/ton, the mainstream price of 107 rubber is between 14000 and 14200 yuan/ton, the mainstream price of domestic silicone oil is between 14800 and 16500 yuan/ton, and the price of imported silicone oil is between 18500 and 19500 yuan/ton. In addition, the quotation for 421 # metal silicon is 12500 to 13100 yuan/ton, the quotation for chloromethane is 2650 to 2750 yuan/ton, and the mainstream price for high hydrogen silicone oil is between 7500 and 7800 yuan/ton. In the current market environment, demand side manufacturers have adopted different response strategies in the face of complex market trends. Affected by the mentality of buying up instead of buying down, some manufacturers consider the cost pressure that may arise from future price increases and choose to increase inventory appropriately when current prices are relatively low to meet future production needs. However, due to the uncertainty of orders and the pressure of year-end payments, some demand side manufacturers are cautious about the future market and only maintain essential purchases. On Thursday, relevant personnel from Spark Corporation stated that in the face of intensified competition and cyclical changes in the silicone market, the overall market will rebound, and emphasized that increasing differentiated competition and promoting high-end domestic substitution will become the future development direction.
Recently, Derun Electronics, a manufacturer of silicone cables, announced that the company and one of its actual controllers, Qiu XX, received the "Notice of Filing" issued by the China Securities Regulatory Commission on December 25, 2024. Due to suspected violations of information disclosure laws and regulations, the China Securities Regulatory Commission has decided to initiate an investigation into the company and Qiu XX. Previously, the company disclosed on December 30, 2023 that the Shenzhen Securities Regulatory Bureau had taken corrective measures against the company, pointing out that the accounts receivable recovery situation disclosed in the company's regular reports from the first half of 2020 to the second half of 2022 did not match the actual situation, and there were inaccuracies in the relevant annual financial report data. The company has actively rectified these issues and continues to implement regulatory requirements. Subsequently, the company and Qiu XX will continue to actively cooperate with the investigation work of the China Securities Regulatory Commission. At present, the company's operations are normal, and the above matters will not have a significant impact on the company's business activities. Public information shows that Derun Electronics' main business includes the research and development, manufacturing, and sales of electronic connectors, precision components, and silicone cables. Its silicone cable products are widely used in household appliances, computers and peripheral devices, communication equipment, smartphones, LED lighting, smart cars, and new energy vehicles.
Since 1967, the global use of plastic has increased 20 times. However, with the increasing reliance of oil giants on this miraculous material, the situation is becoming increasingly complex. As people shift towards electric vehicles or at least purchase more fuel-efficient versions of traditional cars, energy companies will face an oversupply of oil in their hands. In order to offset the impact of declining demand for transportation fuels, the oil and gas industry needs to respond by increasing plastic production.
The high prices and interest rates of cars are changing the purchasing mindset of American consumers, who increasingly believe that bigger cars are not necessarily better when buying their next car. Asian brands are benefiting from consumers' growing interest in small cars. For many years, American car buyers have favored larger and more spacious cars, a trend that was particularly evident in the last decade, resulting in some car companies shutting down production due to a sharp decline in sales of small cars and sedan models.
Affected by various negative factors, diamond giant De Beers has accumulated its largest diamond inventory since the 2008 financial crisis. The decline in demand from major countries, intensified competition from laboratory grown diamonds, and the decline in marriage numbers caused by the pandemic have resulted in the inventory value of the world's largest diamond producer reaching approximately $2 billion. De Beers has always been a monopolistic giant in the diamond industry, controlling 80% of global diamond production in the 1980s and still supplying approximately 40% of natural diamonds worldwide today. In response to the current difficulties, the company has reduced the production of its mines by about 20% and lowered prices in the latest auction this month.