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Silicone is rising again! Chemical giants have raised prices one after another, and merchants are reluctant to sell

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With the general rise of chemical raw materials, downstream industries have continued to increase demand for re-production after the beginning of the year, pushing up the price of organic silicon DMC again. The Cailian News reporter learned from a listed silicone company that the current price of silicone DMC is between 22,000 yuan and 24,000 yuan/ton, an increase of 2,000-4,000 yuan/ton compared to about 20,000 yuan/ton in early February. Regarding the later trend, some analysts believe that under the strong upward trend, merchants have a strong willingness to sell, and downstream inquiries are actively stocked, and there is a strong bullish mentality in the short term.

On March 4, Zhejiang Xin'an Silicone DMC temporarily reported 24,300 yuan/ton to the outside world, an increase of 300 yuan/ton compared to 2,400 yuan/ton on March 1; there is also news that the mainstream DMC quotation has exceeded 25,000 yuan/ton. . In the industrial chain, silicone rubber, silicon dioxide, gas silicon and other organic silicon products have risen to varying degrees.

Dow Chemical, a large international company in the industry, has recently announced that it will increase its silicone high-performance construction products from March 20. According to different product specifications, the increase will be 5%-20%; a week ago, the international giant tile Gram also announced an increase in the price of hydrophilic fumed silica by 20%.

Different from the last round of silicone soaring supply-side shrinking and other reasons, this round of rising is more because the downstream stocks are less stocked and the demand for re-production is superimposed, resulting in strong downstream demand. The above-mentioned company sources said that after the start of the new year, the downstream organic silicon industry chain resumed production, the market has recovered and demand has gradually rebounded. According to a reporter from the Financial Associated Press, the trend of decline after the surge in organic silicones a year ago caused a strong sentiment in the downstream to look forward to falling. Nowadays, downstream demand is increasing, leading downstream companies to urgently need to replenish inventory in the next year.

In addition, the cost-side increase is also the reason for this round of silicone price increases. According to data from Chemical Net, organic silicon DMC raw materials, silicon metal, methyl chloride, and methanol have increased significantly. Among them, silicon metal was quoted at 13,200 yuan/ton in Fujian on March 4, an increase of 1,200 yuan/ton compared to 120,000 yuan/ton last year. ; Trichloromethane only increased by more than 10% in 10 days. However, Dow's price increase letter mentions that raw material prices, environmental protection costs and rising logistics costs have a huge impact, leading to an increase in the cost structure.

Regarding the later trend, a chemical analyst believes that the organic silicon industry is a typical high-energy-consuming industry, and the carbon neutral target may limit the supply of the industry and push up its price. From this perspective, the price increase logic may have a long-term nature. However, the reporter noticed that as early as 2016, the silicone industry experienced a major reshuffle due to environmental issues, resulting in insufficient supply-side production capacity, which caused prices to soar for a while.

Some analysts believe that the market has a strong atmosphere for speculation, and merchants have a strong willingness to sell under the strong upward trend. Therefore, the continued bullish mentality of the silicone market will not fade in the short term. In this regard, a reporter from the Financial Association confirmed to an insider of a silicone DMC listed company that such a phenomenon did exist. It is reported that the industry has no shortage of non-reporting phenomenon.

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