Recently, the significant surge in raw material prices has become a focus of market attention. Data shows that the prices of some raw materials have increased by over 1000 yuan, which directly drives price fluctuations in the silicone market. In this context, downstream companies of organosilicon have launched price increase proposals, hoping to cope with the pressure of rising costs by adjusting prices.
On February 19th, the performance of the A-share market also reflected this upward trend. The three major indexes collectively rose, with over 4600 individual stocks in the market showing an upward trend. Among them, the Shanghai Composite Index rose by 0.81%, the Shenzhen Component Index rose by as much as 1.46%, and the ChiNext Index also achieved a 2.03% increase. At the same time, the organic silicon sector also closed up 1.39%, indicating a positive response from the market to price expectations.


Industry insiders believe that the current market is in a window period of "spring agitation", and the improvement of domestic economic and policy expectations provides strong support for the market. In this context, the organic silicon market has also shown a trend of stable operation but gradually rising prices.
Entering Thursday, the organic silicon market continued this trend. Despite insufficient follow-up of downstream demand, the pace of production reduction by individual factories is gradually increasing, with sufficient pre-sale orders and a continued tight spot situation. It is understood that the second round of upward trend may start today or tomorrow. Overall, midstream and downstream enterprises are cautious about chasing price increases and adding positions after another wave of replenishment. However, under the stimulus of reduced production and rising prices, individual factories have already placed orders until mid March. Therefore, although midstream and downstream enterprises have expressed doubts about the price increase, individual factories are still steadfastly moving towards the DMC target price.
If terminal demand further recovers by the end of the month, midstream and downstream enterprises will gradually digest inventory, and in order to layout peak season market orders in advance, there is a possibility of a resurgence of demand for replenishment. At that time, the upward trend of organic silicon will be stabilized, and it is highly likely to achieve the expected target price of individual factories. From this, it can be seen that the silicone market in February will be characterized by a continuous "rise".