According to institutional data, in the first week of March, the domestic silicone market price was raised by 300 yuan/ton. Last week, the transaction price continued to increase by 500 yuan / ton.


Wacker Chemical is responsible for the high-level silicone business. According to the reporter, the price of silicone has risen all the way after the Spring Festival this year. In particular, the upstream market has increased by a large margin, with different varieties, with an average increase of 10% to 15%.


Silicone concept stock


According to analysis, the price increase of organic silicon is mainly due to the continuous increase in the operating rate of the downstream, and the stocking is considerable. It is said that the stocking volume of a number of downstream large plants has been added to the end of March, resulting in a compact single-unit plant and low inventory, and the price of silicone intermediate DMC continues to rise.


The data shows that the domestic organic silicon monomer unit has gradually increased its operating rate since March, and the current domestic plant construction has remained above 80%. As of March 14, the total capacity of the monomer units under the name of 14 major monomer manufacturers in China was about 3.035 million tons.


“The current single-unit enterprises are starting to work normally, but the inventory is still low. With the downstream orders being active, the superimposed demand season is gradually coming, and the price of organic silicon continues to rise.” Yang Owen, an analyst at Chuan Cai Securities, said.


Downstream of the organic silicon industry chain also shifts cost pressures through price increases. Following the release of the price increase letter by silicone rubber companies at the end of February, only half a month later, some silicone rubber companies issued price increases last week to announce product price increases.


“With the start of construction and other industries, the downstream products of silicones entered the peak demand season in March.” Pu Qiang, an analyst at Guojin Securities Resources and Environment Research Center, believes that after the rapid decline in the previous period, the price of silicone products has fallen to a historical low. . At present, the downstream enterprises have a good willingness to purchase at low prices, and the procurement demand has also rebounded. The industry is in a state of both supply and demand, and the overall price of products has rebounded, and the profitability of enterprises has been repaired.


"At present, the company has sufficient operations, the market supply and demand are booming, the inventory is at a low level, and the downstream orders are in good condition." Li Wenjing, an open source securities analyst, predicts that the market is expected to continue to warm up as the demand season approaches.