At the beginning of the new year, there are waves in the workplace! Dow announced the layoff of 1500 employees, while the silicone market opened a new year with a stable attitude. With the end of the Spring Festival holiday, we welcome a hopeful February. Have everyone returned to work and welcomed the season of recovery for all things?
At present, although the trend of the organic silicon market is not clear, the main manufacturers have sufficient orders, which gives the market confidence to support prices. It is expected that in the short term, the market price of organosilicon will remain stable, and the mainstream quotation of DMC will remain between 12600 and 13500 yuan/ton.
In the 107 rubber market, due to the stable prices of DMC raw materials, the quotations for 107 rubber and silicone oil have also been able to continue. This week, the quotation for 107 glue is 13200-13500 yuan/ton, while the quotation for silicone oil is 14800-15500 yuan/ton. However, the terminal consumer market that returned after the holiday is still sluggish, and although downstream silicone rubber companies have resumed work one after another, their demand is average. In addition, due to limited logistics recovery, the overall market transaction situation is relatively flat. At the beginning of the month, the follow-up of new orders was also not satisfactory, with 107 glue and silicone oil companies mainly delivering pre-sale orders, and prices remained firm.
In terms of foreign brand silicone oil, although the pre holiday trading performance of traders was good, supporting the firm quotation, the current trading volume is not high. However, this trend can still be maintained in the short term, with foreign brand silicone oil agents quoting 17500-18500 yuan/ton this week.
The silicone oil market for cracking materials has also ushered in a new year. The new materials are running steadily, while the cracking material enterprises continue to observe with expectations for a good start. At present, the quotation for cracking material silicone oil is 1250013500 yuan/ton (excluding tax), and it will maintain weak operation in the short term. In terms of waste silicone gel, the market layout of silicon product factories will slowly expand after the holiday, while cracking material enterprises will have a strong wait-and-see attitude. In the short term, it is still difficult to find a balance point between import and export prices. However, waste silicone recyclers have not been greatly affected. They rely on pre holiday stocking to receive orders in an orderly manner, and prices remain stable. At present, the quoted price for rough edges is 40004300 yuan/ton (excluding tax), and trading may remain unchanged in the short term. We will wait for the arrival of the first wave of market conditions before making further arrangements.
From the demand side, the real estate sector is gradually recovering due to the improvement of market expectations before the holiday, and the supply-demand relationship in the market is improving, with stronger signals of industry recovery. However, some industry insiders believe that although the recovery of the real estate industry will drive an increase in demand for building materials, there is still little room for growth in the actual consumption side under the impact of existing housing. Therefore, the demand for construction adhesive may not recover quickly after the new year, and the silicone adhesive market may continue to fluctuate.
Overall, trading in the post holiday market has not fully recovered. But upstream and downstream enterprises maintain high prices when there are sufficient pre-sale orders. Next, we will closely monitor the beginning of the market situation. From the current fundamentals, the overall economic situation is still not optimistic, and the tariff storm is still advancing. The road to the market returning to the right track is still long and arduous. In the short term, the market may maintain weak volatility, but overall it will remain stable.