Silicone prices loose at high levels

Silicone, known as the “price increase king” of this year’s chemical products, the DMC quotation hit a high of 64,200 yuan (ton price, the same below) on the first day after the National Day.

Judging from the feedback from the silicone market, although a small number of companies stock the right amount at present, more companies are still waiting and waiting for the quotations of mainstream manufacturers before making a decision

Raw material price callback

From the perspective of raw materials, the silicon metal market has begun to cool in the past two months

In the early stage, due to the "dual control" of energy consumption and power curtailment, the production capacity of metal silicon was limited, and the price rose sharply.

Also constrained by the short-term limit of electricity production, the downstream areas such as aluminum alloy and polysilicon have also been reduced significantly, thereby reducing the demand for metal silicon.

Wang Yuwu, an analyst at Beijing Guohua New Materials Technology Center, said that due to the uneven quality of metal silicon, it is expected that some products may not be used for silicone production

Gradually increase production

The surge in the price of organic silicon in the early stage is highly correlated with the "dual control" of energy consumption

　　However, in the face of the increasing shortage of coal and electricity, relevant state departments have proposed to vigorously promote coal mines with the potential to increase production to release production capacity as soon as possible

　　At the same time, Yunneng Silicon Material's first phase of 200,000 tons/year of organic silicon monomer will be put into production soon.

　　Zhejiang Xin'an Chemical Group Co.

　　Some insiders also said that due to the full production of many companies in the early stage, there were more corporate maintenance plans in the fourth quarter, and there may be behaviors that reduce production and become very expensive

　　End market downturn

　　Faced with aggressive silicone prices in the early stage, coupled with the impact of limited electricity and sluggish terminal consumption, downstream manufacturers have reduced their demand for silicone raw materials

　　There are many categories of downstream organic silicon products, involving real estate, electronic appliances, new energy and other fields

　　From the perspective of the real estate industry, Crane Real Estate Research believes that housing prices have only risen but not fallen for 20 years, creating a black hole for real estate "gold absorption", backlashing the physical industry and restraining residents' consumption

　　From the perspective of subdivided downstream areas, the market demand for silicon-lead alloys is relatively limited, and there is resistance to excessively high organic silicon prices

　　In addition, the demand of downstream silicone rubber manufacturers is sluggish, and it is superimposed into the off-season, and downstream transfer costs are even more difficult

　　Just when the price of organic silicon began to loosen, the price increase letter from the international giants of Dow and Wacker once again caused the market to panic
.

　　In this regard, Wang Yuwu believes that although Dow's monomer production capacity is not small, its downstream products are very abundant, many of which are special-purpose, excellent performance, and irreplaceable
.
Moreover, the price of the previous orders has not been adjusted substantially like the domestic manufacturers, so this price adjustment is also a normal category, and the adjustment of Wacker Chemie is also the same
.
In the short term, the silicone market is expected to remain in a high stalemate stage
.