The price of silicone sealants continues to rise.

Affected by the closure of the main market and heavy snowfall logistics, the spot circulation of the organic silicon market is insufficient. When the cost and operating rate are uncontrollable, the midstream and downstream can only increase first. Under the resonance of multiple parties, the price has shown a rapid upward trend. As of February 21, the DMC of Shandong monomer plant was reported at 15,200 yuan/ton, and the DMC of other monomer plants has exceeded 15,500 yuan/ton, with a trend of sprinting towards 16,000. . In terms of cost: chemical grade metal silicon has been stable but has fallen recently, with the mainstream quotation of 421# at 15,000-15,600 yuan/ton, ending the inversion with DMC, and the recent recovery of monomer factory profits has initially achieved results.

At present, most individual factories still have the support of pre-sale orders, and one main supplier is missing, which gives the spot the confidence to support the price, and the upward trend is now strong. However, no amount of bullish voices can offset the risk of overcapacity. As prices rise step by step, the midstream and downstream sectors do not dare to be unprepared or overprepared. Before the big mystery of the leading factory is revealed, rising is the main tone.

107 glue and silicone oil market: DMC continues to rise, and monomer factories are mainly located in the north. The arrival of DMC will undoubtedly be delayed in the near future, so the inventory of silicone oil manufacturers is low. The price of 107 glue is close to that of DMC, so silicone glue factories prefer to purchase 107 glue. As of February 21, the 107 rubber market price is 15,900-16,200 yuan/ton, and the silicone oil market price is 17,000-18,000 yuan/ton. In the short term, there are more pre-sale orders from monomer factories, and the gold, three and silver prices are coming again. At this time The main force is closing the market, and the opportunity for silicone oil and 107 glue to increase will definitely not be missed. In addition, the price of silicone ethers is still stable at around 33,000 yuan/ton. Domestic silicone oil factories have already digested the low-priced silicone ethers in the early stage. Currently, high-priced silicone ethers are generally purchased, and the cost has increased significantly. Therefore, silicone oil factory inventories are expected to continue to rise.

Cracking material silicone oil market: As new materials rise, cracking materials will naturally follow the trend. However, business has not been good in the past two years. Cracking material plants have been slow to resume work after the holidays. They have not entered normal operation this week, and the same is true for waste silicone recyclers. However, as the rise in new materials continues and inquiries from cracking material companies increase, the operating rate is expected to increase rapidly. The current quotation of cracked material DMC is 13,500~13,800 yuan/ton (excluding tax), and the quoted price of cracked material silicone oil is 14,500~15,500 yuan/ton (excluding tax).

In terms of waste silica gel: Raw rubber and mixed rubber have increased significantly in the past two days, which has a certain impact on product factories. Therefore, there is a high probability that product factories will increase the raw edge receipt price. However, after the baptism of 2023, the supply and demand pattern of waste silica gel has reversed. Speculation is no longer arbitrary, and the trend is adjusted based on new information. This week’s raw edge price is 5,200~5,300 yuan/ton. Overall, the contradiction between supply and demand in the cracked material market has eased in 2024, and the overall situation is stable and improving.

On the demand side: Midstream and downstream enterprises are currently in the stage of "having food in hand and not panicking". Although they stocked goods at low prices before the holiday, the arrival after the holiday was less than expected. With the resumption of work and continuous digestion of inventory, there will be another "golden season". "Three" is the traditional peak season, so there is still a certain demand for stocking. And for silicone glue, it has endured an overall increase in costs for two or three months. Silicone oil, 107 glue, cross-linking agents, fumed silica, etc. have increased to varying degrees. The current cross-linking agent quotation is still 28,000 yuan/ tons, so silicone glue is more likely to rise in the short term. Some companies have taken the lead in issuing price increase letters. Dealers are preparing for the traditional peak season of March and are actively purchasing goods in the near future.

Overall, the competition this year is still very fierce, but the profit margins of individual factories that have been losing money for a whole year are also urgently needed to be repaired. A-shares are already pointing at 3,000 points, and the continued losses of organic silicon must be stopped. It is expected that the organic silicon market will maintain stability.