This week, the atmosphere of price increases in the silicone market has become increasingly intense. Yesterday, all major monomers raised their prices across the board. In just a few days, organic silicon has completely turned the tide, and Shandong monomer factories have directly increased from 12500 yuan/ton to 13400 yuan/ton, a significant rebound of 900 yuan! At present, the mainstream quotation for DMC is 13400-13800 yuan/ton, with an overall increase of 3.85% compared to before the holiday. The strong rise of individual factories has intensified the bullish mentality of some market players, but downstream companies have not significantly increased their inventory levels. More companies are still mainly digesting their previous inventory, and their acceptance of high-level offers is not high. However, individual factories intend to build a bottom for prices, and most manufacturers have reduced production by 20% on the basis of current production, which is expected to further promote the rise of the organic silicon market. Currently, there is a strong atmosphere of speculation in the market. With pre-sale orders not yet delivered and market demand orders gradually replenished, individual factory quotations are firm and are expected to rise again.

107 glue and silicone oil market: Yesterday, the leading factory also raised the price of 107 glue by 600 to 14100 yuan/ton, and the price of silicone oil by 15300 yuan/ton, an increase of 500 yuan. Under the strong support of the establishment of DMC, hydrolyzed materials, and 107 rubber by the leading factory and two monomer factories in Shandong, other 107 rubber enterprises have seen their prices rise accordingly. Currently, the mainstream price of 107 rubber is 13800-14100 yuan/ton, with a price increase of 500 yuan, or 3.73%. In terms of orders, although the follow-up of new orders after downstream price increases is relatively average, the two major 107 rubber main monomers have sufficient pre segment orders, and in the short term, they mainly focus on delivering pre-sale orders, with little inventory pressure. It is expected that the 107 rubber market will maintain stable follow-up operation. In terms of silicone oil, due to the overall price increase of DMC, the cost support for silicone oil enterprises has increased. However, with the current warming of temperatures and the reduction of DMC crystallization phenomenon, the stocking pressure on silicone oil manufacturers has decreased. Although the price of silicone oil has increased, the increase is not as high as DMC. Small and medium-sized silicone oil manufacturers mainly digest inventory due to short-term production, and their quotations are stable and accepting orders according to the market. Currently, the mainstream quotation for methyl silicone oil is 15300-15500 yuan/ton, and some manufacturers' quotations have a narrow upward trend.
Cracking material silicone oil market: Leading new material factories are exploring price increases, and cracking material silicone oil enterprises are following suit and raising prices to 12500-13500 yuan/ton (excluding tax). In terms of orders, downstream stocking is still mainly carried out by new material manufacturers. However, due to the weak price advantage of cracking material enterprises, there are still some scattered orders recorded, and overall, they are mainly delivered through scattered orders. In terms of waste silicone, in the current speculative atmosphere, silicon product companies are reluctant to sell, and there is less raw material for burrs. Although cracking material companies have followed the small increase, there is no significant increase in actual orders, and the market trading atmosphere remains light. Therefore, waste silicone recyclers are also difficult to join the speculative atmosphere. Currently, the cracking material's raw material collection price for burrs is between 4300-4500 yuan/ton (excluding tax), and there are many inquiries, but the transactions are still average. Overall, due to the constraints of the demand side, the profit margins of the recycling plant and waste silicone rubber recyclers are still in a slight deficit situation, and prices are unlikely to undergo significant changes.
On the demand side: Downstream enterprises have sufficient stock before the holiday, but their purchasing enthusiasm after the holiday is average. In addition, due to the sluggish end consumer market, silicone rubber enterprises are not optimistic. After all, the current demand for construction rubber is limited, and silicone rubber enterprises have average shipments, fearing that they will eat dust in the warehouse after stocking up. Therefore, in the bearish sentiment, silicone rubber enterprises have limited stock and will continue to focus on essential needs in the short term. Overall, the organic silicon market is currently experiencing strong speculation, with downstream terminal demand gradually opening up. However, in terms of actual demand, post holiday terminal demand has not been fully released, and February is the off-season. The middle and lower reaches are cautious about chasing after the rise. However, as we approach the traditional peak season of March, market demand may experience some degree of growth. If the current upward trend continues until the end of the month, driven by expectations of the peak season, this rebound is expected to continue into March.