Rise up, rise up! DMC silicone oil 'sudden change in wind direction'! The leader has made another move. On August 5th, mainstream quotes for DMC, 107 glue, raw glue, and silicone oil will be available. Take a look!-Iota

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News > Dynamic industry > Rise up, rise up! DMC silicone oil 'sudden change in wind direction'! The leader has made another move. On August 5th, mainstream quotes for DMC, 107 glue, raw glue, and silicone oil will be available. Take a look!

Rise up, rise up! DMC silicone oil 'sudden change in wind direction'! The leader has made another move. On August 5th, mainstream quotes for DMC, 107 glue, raw glue, and silicone oil will be available. Take a look!

Rise up, rise up! DMC silicone oil 'sudden change in wind direction'! Last week, the industrial silicon market stopped falling and stabilized, and market sentiment continued to improve. It is reported that the transaction price of DMC silicone oil generally rebounded by 100-200 yuan on Friday, with the mainstream transaction price of DMC ranging from 13000 to 13200 yuan/ton. Sources reveal that Hubei and Zhejiang have restarted limited orders for individual units, what does this mean? Individual factories follow the existing "limited quantity mentality", which may be seen by some as a means of competing in a new price range.
Is the price war of organic silicon about to come to an end? At the end of July, multiple silicone giants announced brand rejuvenation strategies, with price increases ranging from 10-15%. On July 31st, Xin'an Corporation issued a notice of price adjustment for silicon-based products, stating that due to the serious competition and vicious competition in the current industry's general products, and based on the need to maintain the healthy development ecology of the industry and Xin'an's own business, after careful and comprehensive evaluation, Xin'an's silicon-based materials business will adjust the prices of Xin'an's organic silicon and inorganic silicon series general products from August 15th, 2024 or the date allowed by the contract. Based on different product lines and markets, the average increase in adjustment is 10%! Mr. Wu also recently stated that the price war in the second half of the year may experience a slowdown. After fierce competition in the first half of the year, the market may gradually form a new price equilibrium point.
According to sources, "selling silicon at a loss" will eventually come to an end, and the price increase of leading companies is coming. Last Friday, leading companies informed large customers by phone that their products will be adjusted in mid August, with a range of about 5-10%. Overall, the leading company did not cause any problems with the price this time, and it has remained stable for three consecutive months, sending a new signal to the market. Perhaps the turning point of the organic silicon price war is finally coming. The Central Politburo meeting emphasized the need to cultivate and strengthen emerging and future industries. We must vigorously promote high-level technological self-reliance and self-improvement, strengthen key core technology research and development, and promote the transformation and upgrading of traditional industries. We need to provide strong and effective support for the development of gazelle and unicorn enterprises. We need to strengthen industry self-discipline and prevent vicious competition in the form of internal competition. Strengthening the mechanism of survival of the fittest in the market and opening up channels for the exit of outdated and inefficient production capacity are believed to be beneficial for the long-term healthy development of the industry.
Without obtaining reasonable profits, the healthy development of the industry cannot be discussed. At the China Fluorosilicon Industry Conference held in May, several big names spoke out that the current domestic demand for organosilicon is not strong enough, the market competition is extremely fierce, and there is disorderly competition. Many organosilicon enterprises have seen a decline in profits or even losses, which has impacted the stability of the industrial chain and supply chain. The silicone industry is a fundamental industry in global manufacturing and is greatly affected by macroeconomic cyclical fluctuations. The upstream of the organic silicon industry chain is raw materials with high concentration. The price changes of upstream monomer factories have a significant impact on the middle and downstream organic silicon manufacturers. At the same time, the overall improvement and repair of the global macro level have established a trend of continuous rise in organic silicon prices, and the radiation effect of leading prices will further promote the transfer of relatively high concentration raw material fields downstream. At the same time, the comprehensive recovery of organic silicon demand driven by production also provides a rebound breeding ground for the transmission of gold, nine, and silver.
The latest survey data shows that 58% are still bearish. They believe that the unexpected lower than expected US CPI data in early July was the last straw that crushed overseas economic expectations, or it could be the whistle blowing event of this recession cycle. On the evening of July 11th, the June CPI data in the United States was lower than expected, indicating that US inflation is rapidly falling back. At the same time, the expectation of the Federal Reserve cutting interest rates has significantly increased, and the probability of a rate cut in September has increased to over 90%. The Fed's interest rate cuts in September will also bring about a new wave of interest rate cuts, essentially because many overseas economies are gradually entering into recession expectations. The Fed's interest rate cuts are a concentrated reflection of overseas recession expectations, but in the end, it is the Fed that cannot withstand them. The demand for organosilicon is mainly overseas, and once the European and American economies fall into recession, the demand for organosilicon may be dragged down.
DMC market trend: The focus of the domestic DMC market is on the rise, with mainstream market prices increasing by 100 yuan/ton. Under the macro level boost, the activity of replenishment funds has increased, and the rebound of large factories has driven the market to rise at a low level. The mainstream price in East China is 13200-13900 yuan/ton, and the transaction is still acceptable.
Silicone oil market: The domestic silicone oil market is consolidating, with mainstream market grades rising by 100-150 yuan/ton. The rise in leading prices has driven a rebound in spot prices of silicone oil, resulting in an overall rebound in market transactions and better shipments from joint venture brands. Anhui's top silicone oil brands are priced at over 16000 yuan/ton, cracking material silicone oil is priced at over 13000 yuan/ton, and Dow Xinyue Wacker silicone oil is priced at 19500-21500 yuan/ton.
107 glue market: The domestic 107 glue market has slightly followed suit. Raw material DMC has stopped falling and boosted, and cost support has strengthened. The market has made some attempts to follow suit. It is reported that the import price of 107 glue is 15500-16500 yuan/ton, and the domestic mainstream brand price is 13950-14800 yuan/ton. The price of cracked 107 glue is quoted at 13200-13500 yuan/ton. The industry supply has increased, with some maintenance grades experiencing significant increases, and the overall increase is limited. Buying is relatively cautious in chasing higher prices, with average transactions.

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