DMC soared (trading volume)!

This week, the volume of intended trading rose sharply. It is understood that large downstream customers have actively inquired and placed orders. Individual enterprises began to sign orders in April in a centralized manner, and even some enterprises have signed all the orders in April this week. Data from 12 individual enterprises shows that the number of large downstream customers asking for orders this week exceeded 10000 tons.

The industry said that in 2022, the first round of centralized supply of upstream products will start. At present, upstream enterprises in Zhejiang, Shandong, Inner Mongolia, Yunnan and other places have disclosed the first batch of centralized supply of raw materials and the contract price. From the perspective of supply, the phenomenon of the upstream downstream expansion is still continuing. The three monomer plants in Zhejiang and Jiangxi have significantly reduced the supply scale of raw materials. Jiangxi manufacturers said that the demand side is mainly overseas, and currently export orders are full; A manufacturer with the highest proportion of downstream extension in Zhejiang has given priority to self use and export.

There are many kinds of downstream silicone products, mainly including silicone rubber, silicone oil, silicone resin, functional silane, etc. From the demand side, the downstream application scenario of organic silicon has gradually expanded from the initial defense and military industry to the fields of architecture, power, electronics, automobiles, textiles, personal care, etc. At the same time, under the promotion of new energy and other policies, emerging application fields continue to emerge, such as new energy, photovoltaic, 5G communication, emerging electronics, mother and child care, etc.

President Ye, the person in charge of a downstream listed enterprise, said: maintain the view that the current DMC downward cycle may end at the end of the second quarter, but the DMC price rebound may be limited. It is expected that DMC will mainly operate at a low level, and the silicone industry chain may experience great changes. The fluctuation of DMC and other silicone raw materials will accelerate the optimization of China's silicone industry structure to a certain extent, and leading enterprises may gradually lead the industry development.

According to market news, many famous real estate developers cut down orders for related traditional building silicone adhesive products, reducing the demand for the whole year by more than 35%, because it is predicted that the demand for real estate is moderate. In this regard, the person in charge of the relevant silicone adhesive enterprises said that at present, all production is normal, and no major changes have taken place; A listed enterprise said on the interactive platform that the building silicone adhesive products have maintained stable cooperation with customers. At present, the order situation has increased as expected, and has been implemented normally. There is no case of customers cutting orders.

However, it is worth noting that the enthusiasm for investment in silicone monomer is high, and new and reconstruction and expansion projects continue to increase rapidly. There is a risk of phased overcapacity, which may lead to oversupply. This should attract the attention of the production enterprises, control the risks, and strengthen the innovative research and the development of the downstream high-performance product technology of silicone.