Metal silicon rises! Organic silicon replacement welcomes the boom!

Yesterday, silicon metal rebounded across the board and its price soared. At present, the demand side is the main contradiction between the supply and demand of silicone. Affected by the epidemic, the upstream initiative to reduce production capacity+the release of overseas production capacity blocked+consumption improved, and silicone products are expected to gradually rise from the downturn. At present, the industrial chain is at the starting point of a new cycle, and the spot prices of silicone related products are at the bottom of the region, with a high value of replenishing inventory. The industry believes that the value of functional silicone oil is five times that of ordinary silicone oil. After comprehensive replacement, it can not only improve the industry concentration, but also greatly increase the scale of the silicone industry. The silicone oil leaders benefit deeply.

According to the latest industrial data, the replacement rate of functional silicone oil has reached 66%, which is expected to further increase in the fourth quarter of this year. At the same time, as the fourth quarter is the traditional peak season of the industry, the growth rate of functional silicone oil demand will maintain. Since this year, the leading enterprises in the silicone oil industry have actively promoted new products to upgrade the product structure, improve the profitability of products, and thus bring about the improvement of silicone oil profits.

Pet silicon products are booming! The advantage of this year is that the demand is stable and the growth rate is fast, which is similar to essential consumer goods to a certain extent. Therefore, in the context of the overall low consumption data, the consumption of pet silicon products has become more prominent. From the customs data, the cumulative export volume of pet silicon products from January to August was 23.1% year on year, and the growth rate was still stable. In the fourth quarter, with the arrival of the overseas consumption peak season, downstream customers started to replenish inventory, which is expected to continue to drive the demand for pet silicon products. In addition, the recent appreciation of the US dollar is relatively large, which will continue to drive the increase of exchange earnings. Overseas orders are mostly settled in foreign currencies. The appreciation of the US dollar will contribute to the exchange earnings of domestic pet silicon products, thus increasing the net profits.

The domestic silicone market remains weak and stable. The upstream supply is expected to be tight due to transportation restrictions, but the actual supply is limited, and the subsequent changes remain to be observed; The overall market demand is still weak, especially the foreign economy is under pressure, the export competition is increasing, and the domestic trade sales competition is increasing;