Organic silicon runs smoothly!

This week (October 30 to November 5, 2022), the silicone market ran smoothly. Looking back to the third quarter, as the price of upstream DMC and other products fell, the cost pressure of downstream manufacturers such as silicone oil and silicone rubber was relieved, the gross profit began to repair, and the expectation of profit improvement was enhanced. It is worth noting that the new capacity of silicone DMC is intensively released, and the downstream demand is difficult to digest in the short term.

In the third quarter of 2022, Huitian New Material's quarterly gross profit rate reached the highest level this year. When Huitian New Material was investigated, it said that since June this year, the price of organic silicon raw materials began to fall. Recently, the overall price has been relatively stable, and has also returned to a relatively reasonable range. It will play a positive role in the gross margin repair of Huitian New Material, and the product profit space will be further opened.

The metal silicon on the raw material side fell slightly this week; The domestic methanol market is weak and volatile, and the unit maintenance is increasing; The production in Sichuan and Xinjiang has gradually recovered, but the interference factors of the epidemic situation in Xinjiang still exist. In the dry season of Yunnan, power generation is insufficient and the supply is tightened. The production cost has risen, and the large silicon metal plants have a strong desire to support the price. However, the overall production cost has room to fall due to the high level of industrial inventory.

This week, many silicone monomer plants have shutdown maintenance plans. The monomer plants in Jiangxi, Zhejiang and Inner Mongolia are operating normally, with an average operating rate of about 50%.

Vapor phase white carbon black: the price of silicon tetrachloride at the feed end was stable this week, and the supply of methyl trichlorosilane entered, and the price rose sharply. At present, the supply of gas silicon is sufficient, the market trading sentiment is better, and the manufacturers are mostly horizontal.

Precipitated white carbon black: the market trend of soda ash and sulfuric acid at the raw material end has not changed much this week, the overall starting load of soda ash is at a high level, and the supply is sufficient; The coal market is running steadily; The inventory of precipitated silica manufacturers is sufficient. The market of silica for shoes and tires is improving, and the price has increased; The price of silica for silicone rubber is stable.

Forecast: The organic silicon market is stable as a whole this week, the monomer factory intends to stabilize the price, and the production reduction operation continues. After the terminal manufacturer has made up the position in the early stage, it is mainly consuming the existing inventory, and the atmosphere for new orders is weakened. On the whole, 50% of the single units have been operated, more maintenance units have been added, and the supply is relatively reduced; The downstream demand is weak, and the procurement of rigid demand is maintained, and the overall demand is not increased significantly. It is expected that the trend of the silicone market will maintain stable operation in the short term, and it is also necessary to pay close attention to the commencement changes of monomer enterprises and downstream procurement.