Silicone DMC soars 30% this month, related companies will be affected

Recently, the prices of domestic organosilicon intermediates and downstream products have risen sharply. On March 17th, the highest spot price of organosilicon DMC in East China was 30200 yuan / ton, returning to the 30, 000 era. Most enterprises negotiate on a case-by-case basis according to the situation of the day and negotiate prices in real time. DMC export offer is US $4750 / ton. A number of large monomer companies have raised their quotations again, and WACKER recently announced that it will raise the global price of all its silicone products from April, with price increases ranging from 10% to 20%. Since the beginning of this month, the price of some products such as DMC has risen by 30%. The price of some products such as DMC, raw rubber and 107rubber has risen more than 60% from the lowest level in early December 2020.

The agency believes that, on the one hand, because the downstream room temperature glue has entered the peak demand season of traditional gold san silver four, on the other hand, there are fewer stocks downstream affected by the fall in high prices before the Spring Festival, and the recovery of the spring market has led to a sharp rise in prices in the domestic silicone market. According to the relevant data, the weekly output of the industry is about 29500 tons, the weekly inventory is only about 21000 tons, the industry inventory is only about 5 days, and the inventory is low. At present, the starting load of domestic silicone enterprises is tight, while the operating rate of foreign enterprises is generally low due to the impact of public health events, and the supply of foreign brands, mainly Dow, Wacker and Xinyue, continues to be tight after the Spring Festival. at the same time, it also aggravates the tight situation of domestic supply and demand. At present, the enterprise pre-sale order in April is good, and it is expected that the domestic silicone market will continue to rise from March to April. With the expansion of the vaccination scope of novel coronavirus, the impact of the epidemic on the world will gradually fade in the future, and a large recovery of the global economy will be a high probability event, which will drive the growth of silicone demand.

In A shares, you can pay attention to Hesheng Silicon Industry (49.41 + 3.89%, diagnosis stock), Runhe material (27.18 + 2.22%, diagnosis stock) and so on.