The news that BYD asked suppliers to reduce prices caused controversy in the market. However, relevant people from many silicone manufacturing companies said that so far they have not received any price reduction notices from BYD. As for the price reduction trend in the automotive industry chain in recent years, relevant personnel from Dow pointed out that this phenomenon is a structural or phased problem of production capacity, causing the entire industry to fall into the dilemma of increasing revenue without increasing revenue.


As of December 3, the prices of various products in the domestic silicone market are as follows: the mainstream spot quotation of DMC is 12,500-13,700 yuan/ton, the mainstream spot quotation of raw rubber is 14,000-14,300 yuan/ton, and the mainstream quotation of 107 rubber is 13,500-14,000 yuan/ton. tons, the mainstream quotation of silicone oil is 14,800-16,500 yuan/ton, the 421# metallic silicon is quoted at 12,500-13,100 yuan/ton, the methyl chloride is quoted at 2,650-2,750 yuan/ton, and the mainstream quotation of high hydrogen-containing silicone oil is 7,500-7,800 yuan/ton. The silicone market has “cooled” significantly since November. Silicone products such as raw rubber, cross-linking agents, silicon ethers, and gaseous silicones, which have attracted much attention due to their sharp price increases in the first half of the year, have seen sharp price declines recently. On December 2, the actual transaction price of raw rubber fell below 14,000 yuan/ton, while its price once rose to more than 19,000 yuan/ton in the first half of the year.


Industry analysts believe that multiple factors such as overslumping organic silicon prices in December, production cuts and maintenance, and high costs have superimposed on each other, making some individual manufacturers more willing to stabilize prices of varieties. At present, both domestic and foreign demand have improved, which has played an effective role in stimulating the digestion of domestic production capacity. Therefore, we are optimistic about the prosperity of the downstream silicone industry in the medium term. Judging from the current performance of listed organic silicon companies, the performance of some companies has not been significantly affected by the price fluctuations of organic silicon. The reason is that on the one hand, there are differences in the price declines of various types of organic silicon, and on the other hand, the performance of the company is different from that of organic silicon. There is a lag between silicon market quotes.