Go high collectively! On February 19th, the three major A-share indexes collectively rose! Over 4600 individual stocks in the entire market have risen! As of the close, the Shanghai Composite Index rose 0.81%, the Shenzhen Component Index rose 1.46%, the ChiNext Index rose 2.03%, and the CSI 50 Index rose 5.36%. In addition, the organic silicon sector closed up 1.39% yesterday. Industry insiders believe that the current market is in a "spring restlessness" window period, and there is some improvement in domestic economic and policy expectations.

Entering Thursday, the silicone market continued to operate steadily. In recent days, there has been insufficient follow-up on downstream demand, and the pace of production reduction by individual factories has been gradually increasing. There are sufficient pre-sale orders, and the situation of tight spot prices continues. It is understood that the second round of upward trend will begin today or tomorrow. Overall, after another wave of replenishment in the middle and lower reaches, the pursuit of price increases and inventory increases is cautious. However, individual factories have been stimulated by production cuts and price increases, and orders are basically scheduled until mid March. Therefore, although middle and lower reaches enterprises have doubts about price increases, individual factories are still firmly moving towards the DMC target price. If terminal demand further recovers by the end of the month, the middle and lower reaches will gradually digest inventory. In order to advance the layout of peak season market orders, the momentum for replenishment of essential needs is expected to resume. At that time, the rise in organic silicon prices will be stable, and it is highly likely to achieve the expected target price of individual factories. From this, it can be seen that the organic silicon market in February will be characterized by the phrase 'rise!'!.
107 glue and silicone oil market: After the cost increases, it remains stable, with strong support for 107 glue and silicone oil. This week, the quotation for 107 glue continues to be 13800-14100 yuan/ton, while the mainstream quotation for silicone oil is 15000-15500 yuan/ton. From the supply side, due to the fact that 107 glue is mainly produced by individual factories, the supply of 107 glue has also decreased to a certain extent recently driven by the reduction in DMC production. In terms of demand, with the gradual recovery of the real estate and construction industries, the silicone rubber market is gradually returning to the market, and there is a situation of rigid procurement and early layout. Recently, there has been a certain increase in the procurement volume of 107 rubber and silicone oil. In the short term, under the traditional peak season expectation in March, the prices of 107 glue and silicone oil remain firm, or steadily rise with DMC. Foreign brand silicone oil market: Driven by the domestic market, the wave of price increases has also swept through the foreign brand silicone oil market. With an increase in downstream inquiries, agents have raised their prices to 18000-19000 yuan/ton, and subsequent prices may continue to fluctuate based on domestic silicone oil prices and downstream stocking conditions.