As the Spring Festival approaches, downstream enterprises in the organic silicon industry chain have entered the holiday preparation stage. According to Mr. Li, an industry insider in Guangdong, most downstream enterprises have entered the stage of business closure last week and are expected to have a holiday from January 18th to 21st. In terms of price, as of January 19th, the spot price range for DMC is 12800-13700 yuan/ton, the mainstream price range for raw rubber is 14300-14700 yuan/ton, the price range for 107 rubber is 14000-14200 yuan/ton, and the price range for domestic silicone oil is 14800-16500 yuan/ton.
On the supply side, top integrated individual enterprises maintain high operating rates due to lucrative profits, while small and medium-sized individual factories face the problem of tight raw material supply. At the same time, in 2024, the humanoid robot market will usher in the first year of commercialization, and the global market size is expected to grow significantly. As an emerging AI application scenario, AI adult toys will also experience explosive growth, bringing unprecedented development opportunities to the silicone industry chain.
In terms of the operation of individual units, the operating rates of the two major first tier enterprises this week were as high as 80% and 75% respectively. The average operating rate of integrated individual enterprises remained at 65% -70%, while the operating rates of other individual enterprises were between 50% -60%. Despite some individual enterprises reducing production and controlling output during the Spring Festival, the overall supply still maintains a tight balance.