Silicone: expected tight balance between supply and demand in the future

Since the second half of the year, the domestic organic silicon market has continued to rise, showing a prosperous scene not seen in 10 years

Strong gains are hard to find

Recently, organic silicon concept stocks have performed strongly.

The rise and fall of stock prices of listed resource companies are closely related to the price trends of commodities themselves

The main producers are also rising

Compared with the market price that has repeatedly hit new highs, what makes downstream users even more troublesome is that money may not necessarily be able to buy the goods

Supply and demand mismatch pushes up the market

Why did the price of silicone market climb to a 10-year peak? The industry generally believes that the mismatch of supply and demand is the dominant factor

"From the supply side, in the context of policy tightening, the new production capacity of the main production areas of silicone is limited, resulting in a supply gap

　　Silicone is called "industrial monosodium glutamate", and mainly includes more than 8,000 downstream products in four categories: silicone rubber, silicone oil, silicone resin and silane coupling agent

　　Analyzing the market outlook, this year and the next two years will be a major year for new organic silicon production capacity, and the contradiction between supply and demand will be alleviated

　　Stand on the new energy outlet

　　After a large number of new silicone production capacity is on the market, will this carnival in the silicone market evolve into a "leftover feast"?

　　"The new capacity is mainly Dongyue Silicon and Hesheng Silicon.

　　The "golden nine silver ten" traditional consumption peak season is coming soon, and the probability of a sharp increase in demand will further aggravate the mismatch between supply and demand

　　More importantly, in addition to traditional industries, silicone has also become a new energy source

　　In the context of "carbon neutrality", emerging energy markets will usher in explosive growth in the next few years

　　Industry insiders such as Chen Yi, an analyst at China Financial Securities, believe that the demand for silicone will continue to grow in the short term, and the superimposed supply-side production will be lower than expected.