Revealing the reasons for the rise in silicone, who is driving it?
Environmental factors:
The fourth batch of central environmental protection inspections was launched this month. The central government inspected Jilin, Zhejiang, Shandong , Hainan, Sichuan, Tibet, Qinghai, and Xinjiang (including the Xinjiang Corps) have carried out inspection work to achieve full coverage of inspections in all provinces (autonomous regions and municipalities) across the country. Shandong and Sichuan are major organic silicon provinces, with production capacity accounting for approximately 40% of the country’s total production capacity .Strict environmental inspections have led to frequent maintenance and rectification of organic silicon this month, and the maintenance capacity has greatly increased. Another important reason is that Xin’an Maitu’s equipment has been shut down and brought online. Currently, about 120,000 tons of equipment are operating normally, which has caused enterprises to operate at a low level and reduce product supply, causing prices to rise!
Raw material factors:
According to statistics, domestic metallic silicon is 441# (metallurgical grade) The mainstream transaction price has increased from 12,300 yuan/ton in early August to the current 14,100 yuan/ton. The main reason is that the raw materials, raw coal, graphite electrodes, etc. have been seriously suspended due to a series of reasons such as environmental protection and safety audits, making it difficult for silicon companies to find raw materials and production. Restricted, the silicon market is in short supply. The rise in raw materials strongly supports the silicone market!
Affected by the low start-up of glyphosate units, the supply of methyl chloride Insufficient, price increases, coupled with the recently released list of public complaints and transfers of mass complaints and reports and border supervision and reforms in Leshan City, Sichuan Province, which involves two major suppliers of glyphosate, will it lead to the company’s maintenance and suspension of production? It remains to be seen in the future market Inspection.
yuan/ton
In August, metallic silicon 441# (metallurgical grade, Guangzhou Huangpu Port Price)
Price Trend
Downstream mentality:
The largest area of downstream demand for silicone monomers is the silicone rubber industry , if each of these silicone rubber manufacturers stock up on average two to three tons more, even if all existing domestic rubber compound manufacturers start operations, they will not be able to make up for this gap in the short term. Downstream panic prices continue to rise, affecting corporate production and the purchasing atmosphere is active. Adding fuel to this rising market!
Market trend:
In the short term, silicone monomers are out of stock and upstream raw materials Factors such as rising silicon metal prices and rebounding downstream demand will continue to drive up DMC prices. In the medium to long term, after the domestic silicone industry has experienced a sustained downturn caused by overcapacity since 2011, some companies have permanently exited. Under the pressure of environmental protection, existing With insufficient production capacity and limited new production capacity, the supply and demand pattern of the industry has improved significantly.
Silicone oil quotations from some companies:
Dow Corning Silicone conventional viscosity methyl silicone oil is quoted at 28,000-30,000 yuan / ton (delivery including tax and packaging), the current downstream procurement is active, and the agent’s quotation is firm. Wacker methyl silicone oil quotation is suspended.
Domestic conventional viscosity methyl silicone oil quotations for early orders are concentrated in 23,000-25,000 yuan/ton, currently most manufacturers have closed prices and will not quote.
Zhejiang Xin’an is affected by maintenance and raw material shortages, and the supply of silicone oil is trending Tight. The manufacturer is not selling to the outside world for the time being and will not report for sale.
Tangshan Sanyou manufacturer’s silicone oil device operates at a low level, and the shipment volume is relatively high Less. More for contract users. Orders are scheduled until the end of September. There is no bulk export and no quotation yet. The monthly output of high hydrogen-containing silicone oil with a hydrogen content of 1.5-1.6 is about 200 tons. font>
Shandong Dongyue dimethyl silicone oil is affected by environmental protection and raw materials , the output is very small. The company has small inventory, so it will not accept orders or quote for the time being.
Jiangxi Xinghuo Silicone Factory monomer manufacturer maintains 300,000 tons The left and right devices are running, with a small amount of inventory, and some are for self-use. At present, methyl silicone oil is mainly supplied to contract customers, and we are not accepting orders at the moment.
Hubei Yichang Kelin Silicone Materials Co., Ltd. Methyl Silicone Oil Year The production capacity is 10,000 tons, and the monthly production of dimethyl silicone is about 600 tons. Orders are scheduled until mid-September. The supply of goods has been tight recently, and new orders in the market are not available for the time being.
From: China Silicone Forum
e=”word-wrap: break-word; color: rgb(62, 62, 62);”>Preliminary order quotations for domestic conventional viscosity methyl silicone oil are concentrated at 23,000-25,000 yuan/ton. At present, most manufacturers have closed their orders and do not quote.
