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  • Demand peak season superimposed on tight supply, organic silicon industry chain reappears price increase

    The "golden three silver four" of silicone is here!


       "After the Spring Festival holiday, we had a lot of orders, and obviously felt that the raw materials were tight, and the prices rose, and some of the company's products were also adjusted upwards." Yesterday, a person in charge of a listed sealant company told a reporter from Shanghai Securities News.


      According to the monitoring of Baichuan Information, the domestic market price of silicone DMC was about 26,500 yuan/ton yesterday, an increase of 5,500 yuan/ton from February 20. It is reported that the tight supply during the peak demand season is the main reason for the surge in silicone prices after the spring holiday.


      According to the statistics of authoritative organizations, since March, most domestic silicone monomer manufacturers have had a low inventory, and the industry inventory has only been around 5 days. The operating rate of foreign companies is generally low, and the supply of foreign brands such as Dow, Wacker, and Shin-Etsu has continued to be tight since mid-to-late February, which has further aggravated the tension of domestic supply and demand. According to industry insiders, a number of large-scale organic silicon monomer companies have recently closed their orders without reporting them, and negotiated actual orders.


      According to agency forecasts, the current April pre-sale orders of silicone monomer manufacturers are good, and it is expected that domestic silicone prices may continue to rise from March to April.


       This round of silicone prices have soared, can downstream enterprises in the industrial chain bear it? Silicone monomers account for a relatively high proportion of sealants and are the main downstream products. Depending on the type of sealant, its proportion in the product cost is 30% to 40% or 60% to 70%.


    "Due to different customer groups, the price transmission capabilities of enterprises of different sizes are also different. After two rounds of raw material price increases since the end of 2020, the sealant industry is facing a reshuffle, and the concentration of the industry will be further improved." A sealant distributor told reporters .


       "Raw material prices have indeed risen a lot recently, but we can pass it on to downstream customers as appropriate." A relevant person in charge of a listed company producing sealant products in the southwest region said that after the Spring Festival holiday, the company has had plenty of orders and production is tight.


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