Last weekend, the silicone giant Dow Chemical announced a comprehensive increase in the prices of silicones, polymers, sealants and silicone rubber, up to 10%, the new price will take effect on April 1. Other major silicone manufacturers and traders-Shin-Etsu, WACKER, KCC, Momentive, etc., followed up the price hikes, ranging from 5% to 10%.


Agency data show that in the first week of March, the domestic silicone market transaction price increased by about 300 yuan / ton. Last week, the transaction price continued to rise by 500 yuan / ton.


The senior executive responsible for the organic silicon business of Wacker Chemical told the reporter of the Shanghai Securities News that the price of organic silicon will rise all the way after the Spring Festival this year, especially in the upstream, where the increase is large, and the average increase is 10% to 15%.


According to the analysis, the price increase of organic silicon first comes from the continuous increase in the downstream operating rate, and the strength of stocking is considerable. It is said that the stocking volume of many large downstream factories has been added to the end of March, which has led to the compactness of single-factory orders and low inventory, and the DMC price of silicone intermediates has continued to rise.


According to the information of Baibaichuan, the operating rate of domestic organic silicon monomer devices has gradually increased since March. At present, the domestic device operation has remained above 80%. As of March 14th, the total capacity of single-unit installations under the names of 14 major domestic monomer production companies was approximately 3.035 million tons.


"Currently, individual enterprises are operating normally, but inventory is still low. With the active downstream orders and the peak demand season gradually coming, organic silicon prices are likely to continue to rise." Chuancai Securities analyst Yang Ouwen said.


下游 The downstream of the organic silicon industry chain also shifts cost pressures through price increases. After the silicone rubber company issued a price increase letter at the end of February, only half a month later, some silicone rubber companies issued a price increase letter last week to announce product price increases.


“As construction and other industries start to improve, March ’s organic silicon downstream products enter the peak demand season.” Analyst Pu Qiang, an analyst at China Resources Securities Resources and Environment Research Center, believes that after a rapid decline in the early period, the price of organic silicon products has fallen to historical lows. . At present, downstream companies have a good willingness to purchase at low prices, and their purchase demand has also picked up. The industry is in a state of both supply and demand. The overall price of products has rebounded, and corporate profitability has been repaired.


"At present, the enterprise has started adequately, the market supply and demand are booming, inventory is low, and downstream orders are in good condition." Li Wenjing, an analyst at open source securities, predicts that the market is expected to continue to warm as the demand season comes.