[hot stocks] silicone rose strongly by the daily limit of Sanfu shares, Hesheng Silicon Industry and Chenguang New Materials.

Organic silicon plate rose strongly today, as of 13:45, Sanfu shares, Hesheng Silicon Industry, Chenguang Xinliao rose by the daily limit, Runhe material, Dongyue Silicon material, Jinyinhe and so on rose one after another.

According to SMM, the weekly operating rate of Xinjiang silicon plants has declined, the output of low-grade silicon with oxygen has decreased, and the supply of large factories has been rapidly reduced, but taking into account the increased output and supply of other plants in Xinjiang after the completion of maintenance, Xinjiang's output is expected to decrease by 2000 tons month-on-month in June, which has little impact on the metal silicon supply and demand market, so there is no need to panic excessively, and the resulting fluctuation of silicon prices is limited. The time for Yunnan silicon plant to resume production is short, the supply of tradable spot goods is less, and the possibility of short-term downward price of Yunnan silicon is small. Except for some brands which rose slightly this week, the prices of other brands remained stable.

Silicone DMC has continued to rise over the past month, with the spot price of SMM#DMC averaging 30350 yuan per tonne on June 29, up more than 70 per cent in the past month, according to SMM.

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Wanlian Securities pointed out that on the supply side, in the context of tighter policies and limited scale expansion, the main production provinces of Xinjiang and Sichuan have basically stopped the examination and approval of coal-fired power stations to limit the increase in production capacity, entering the stage of slowing production capacity. The supply gap is beginning to appear. On the demand side, the domestic downstream demand for organosilicon has obvious growth rates such as multi-purpose, wide growth and new areas, which strongly supports the demand for organosilicon. On the whole, while the supply is still relatively tight, the downstream silicone demand increases sharply, and the silicone DMC market price will continue to fluctuate at a high level in the short term. It is recommended to pay attention to the relevant leading enterprises.