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Silicone DMC market steadily enters 2020

Views: 11     Author: Site Editor     Publish Time: 2020-01-07      Origin: Site

Source: Business Club Time: 2020-01-07

1. Price Trend

News Figure 7

According to the monitoring data of the business community, as of January 7, the average price of the silicone DMC market in several mainstream regions monitored by the data was 18,700 yuan/ton, which was a decrease of 70 yuan compared with the end of the previous month (December 31). /Ton, a decrease of 0.36%.

2. Market analysis

Products: In 2020, the domestic silicone market continues to operate steadily. Only a few manufacturers have reduced the silicone DMC by about 300 yuan/ton. The current mainstream price of silicone DMC is 18300-19000 yuan/ton, and some low prices are 18100 yuan/ Tons, as the Spring Festival is getting closer and closer, the heat of stocking is gradually declining, some of the mid- and downstream factories will be shut down for vacations, and the market trading atmosphere will gradually become dull. Due to the different inventories of various manufacturers, some manufacturers may slightly reduce their quotations, and they want to stimulate the volume of the year before, but the overall impact on the current silicone market is not significant. In January, the factory equipment maintenance increased, and the overall market operating rate fell At the beginning, some mid- and downstream factories will be shut down one after another until the start of the holiday, and the market is currently operating smoothly.

Start-up of the plant: Aiken Silicone’s Jiangxi base plant has a capacity of 450,000 tons/year. This week’s plant is operating normally. It is estimated that there will be a maintenance plan in late January; Hubei Xingfa has a capacity of 180,000 tons/year. The operation was resumed in mid-month, and the annual production capacity exceeded 300,000 tons/year after being put into operation; Shandong area: Luxi Chemical is currently operating smoothly; Shandong Jinling is expected to have maintenance plans in early January; Shandong Dongyue has a production capacity of 250,000 tons/year, At present, the operating rate is about 7 floors; Zhejiang area: Zhejiang Xin'an and Zhejiang Hesheng are currently in normal operation; Tangshan Sanyou has a production capacity of 200,000 tons per year, and it is expected to have maintenance plans in January.

Industry chain: Silicone oil and 107 gum are supported by the cost of upstream DMC. Currently, the market reference quotation is still firm and stable. The silicone oil market transaction is slightly lighter. As the Spring Festival approaches, downstream demand weakens, and a small part of the stocking demand makes new orders limited. The market's resistance to high prices has always existed, and the downstream stocks are mainly cautious. 107 glue manufacturers currently deliver pre-orders mainly, the inventory pressure in the short term is not large, and the overall supply and demand fundamentals are still good. On January 6, the external quotation of methyl silicone oil (conventional viscosity) manufacturers was around 19000-20500 yuan/ton; the external quotation of 107 rubber manufacturers was around 19000-20200 yuan/ton.

3. Future market forecast

Business community analysts believe that the market has basically completed hoarding goods before the holiday, the current market demand is relatively weak, and the factory inventory pressure is small. Under the current weak supply and demand situation, it is expected that the price fluctuations will not be large before the holiday and the market will remain stable until the Spring Festival the Lord.

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