(Jiangxi New Materials Co., Ltd.)

[Gade Chemical Network Chemical Commentary]Organic silicone market this week The price is stable and weak. Manufacturers basically produce pre-orders. The domestic mainstream quotation is 13,800 yuan/ton, and some high-end quotations are around 14,100 yuan/ton. The transaction price dropped to 13,100-13,300 yuan/ton. At present, domestic silicone companies have sufficient supply, and downstream factories mostly focus on inquiries and have little demand. In terms of equipment, domestic silicone manufacturers are currently operating at a relatively high load, with some manufacturers operating at full capacity. Manufacturers have sufficient inventory and weak shipments.

(Jiangxi New Materials Co., Ltd.)

Industrial chain: At present, the upstream metal silicon market price of organic silicon DMC is generally stable. Recently, the organic silicon market has gradually become off-season, and the downstream demand for organic silicon has gradually decreased. Most of them are bought on demand. Manufacturers have sufficient inventory and the price trend is weak.

Industry: In 2015, the operating rate of the silicone monomer industry basically maintained full capacity, but in 2015 The base of monomer production capacity has increased. From this aspect, the operating rate of monomer industry in 2015 is still mainly on the downward trend. In the past two years, the operating rate of the domestic silicone monomer industry has remained around the mid-range, and the phenomenon of insufficient operating load has become prominent. On the one hand, there has been a lot of new production capacity. In 2014, the new production capacity was about 320,000 tons. In 2015, the new production capacity was 250,000 tons, the production capacity base has increased, but the pace of production growth has been slow and the production capacity utilization rate is low; on the other hand, the tight supply of raw material silicon blocks in 2014 has eased in 2015, but the weak downstream demand has made it even more Obviously, the silicone market in 2015 was “slow in the peak season and even weaker in the off-season.” Market prices frequently hit bottom, and the mentality of individual companies to limit production and protect prices increased significantly during the year. ​

Forecast of the market outlook:At present, the price of the organic silicon market is stable and weak, and the production load of manufacturers’ equipment is high. The supply of goods in the market is abundant, and the downstream market is gradually heading towards the off-season, and the demand is gradually decreasing. Most of them are based on buying on demand. The manufacturers have sufficient inventory and the price trend is weak. It is expected that the domestic silicone DMC market will be stable and soften in the near future.