With the start of the resumption of work after the new year, the silicone market has ushered in a new year. The news of a successful start to a major project is inspiring, as a 2 billion yuan investment is like a strong east wind, injecting new vitality into the entire industry. This week, as the first week of resuming work after the New Year, the silicone market has performed steadily, but behind it lies unlimited potential.
In terms of individual factories, the resumption of work after the holiday remains at a medium to high level. Due to sufficient pre-sale orders, there is not much pressure to reduce inventory. However, most companies have just resumed work and have not yet entered the state of stocking up, resulting in a slightly flat overall market. But this is only temporary. With the comprehensive start of construction by upstream and downstream enterprises next week, the first round of market trend after the holiday may take place.
On the cost side, the industrial silicon market also presents a weak supply-demand pattern. After the holiday, both supply and demand sides resumed work, but the overall level of construction is still relatively low. Downstream demand for polycrystalline silicon is relatively low, leading to increased pressure on total inventory and warehouse receipts. However, in terms of price, the market continued to fluctuate at a low level yesterday, with the closing price of the main contract hovering around the cost line. In the future, the downward space for futures and spot prices is limited, and under the call of the overall environment to "reverse internal competition", the market may experience some slight fluctuations.
In terms of the precipitated white carbon black market, the raw material sulfuric acid market has gradually recovered, but the transaction atmosphere has not improved yet. The soda ash market is also running smoothly overall. In terms of demand, most downstream rubber mixing manufacturers have not yet started production, and market trading is weak. In the situation where both the supply and demand sides are weak, there is insufficient positive news for the precipitated white carbon black market. However, it is expected that the market will continue to consolidate weakly in the short term, and with downstream companies gradually resuming work, the market may usher in a turning point.
The market for gas-phase white carbon black also shows a stable operation trend. There has been no significant change in the first tier market for raw materials, and downstream demand is average, so the first tier prices have remained stable. In terms of orders, the silicone rubber market has not fully recovered, and there is a strong wait-and-see attitude. But there are sufficient pre-sale orders from silicon gas companies, and core orders from large factories continue to be stable. It is expected that the silicon gas market will continue to operate steadily in the short term, and with the gradual recovery of the market, it is expected to usher in new growth points.
Overall, with the accumulation of pre holiday orders, both upstream and downstream enterprises have sufficient pre-sale orders in the short term. Therefore, the current focus of enterprises is mainly on delivering orders. But with the comprehensive resumption of work by enterprises after the holiday and the gradual recovery of the market, the organic silicon market may usher in new development opportunities. Investors should closely monitor market dynamics and policy changes, and seize market opportunities.