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The decline of organic silicon is obvious, and a new round of "price war" is coming

Views: 0     Author: Site Editor     Publish Time: 2021-12-06      Origin: Site

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107 Glue Market: Last week, the 107 Glue market offer was adjusted with the price of raw material DMC, and the mainstream price of 107 Glue market is now 31,500 yuan/ton, which is lower than last week by 1,500 yuan/ton, but some manufacturers place orders for more than 100 tons. The preferential price is as low as 28,000 yuan/ton, and it continues to be upside down with DMC. At present, 107 rubber manufacturers are under pressure, the superimposed off-season is deepening, and downstream demand is weak. Therefore, even in the case of production cuts and substantial profits, the manufacturers’ difficulty in shipments is still high, and inventories are accumulated.


Silicone oil market: Last week, DMC prices moved to the silicone oil market: Last week, DMC prices fluctuated downwards, and the cost-side support of silicone oils became weaker. The price of silicone oils was adjusted downwards accordingly. The mainstream quotations in the silicone oil market are now 36000-38000 yuan/ton, which is more Compared with last week, it dropped by RMB 1,000/ton. Regarding imported silicone oil, Zhangjiagang, a foreign brand, was shut down for maintenance, and the supply of goods was still tight. Because the price of domestic silicone oil was extremely advantageous, agents had no choice but to sell at a higher price. They had no choice but to follow the market, and the quotation was also lower, due to different channels. The wide offer is between 50,000-60,000 yuan/ton. As the cost-side support of silicone oil weakened, the price of silicone oil was adjusted downward. The mainstream price of silicone oil market is now 36,000-38,000 yuan/ton, a decrease of 1,000 yuan/ton compared to last week. Regarding imported silicone oil, Zhangjiagang, a foreign brand, was shut down for maintenance, and the supply of goods was still tight. Because the price of domestic silicone oil was extremely advantageous, agents had no choice but to sell at a higher price. They had no choice but to follow the market, and the quotation was also lower, due to different channels. The wide offer is between 50,000-60,000 yuan/ton.

On the demand side, with the overall vacancy of the silicone market, domestic demand for silicone oil has not improved for the time being. Coupled with the arrival of the downstream off-season, the tenders of textile, silicone rubber, and daily chemical plants are mostly rigid demand, and the overall trading atmosphere is light. Therefore, silicone oil manufacturers can only sell products at a profit. However, in foreign markets, due to the shutdown of Zhangjiagang installations and maintenance, the supply gap of foreign brands has not been filled. As a result, domestic silicone oil exports still maintain a good momentum, which is favorable for silicone oil market offers. However, Christmas at the end of December and the Spring Festival in January are affected by shipping schedules and local holidays. After mid-December, export orders may be expected to decrease.

On the whole, the silicone oil market is mixed, and the demand side is generally weak. Therefore, it is expected that in the short term, the silicone oil market offers may be slightly adjusted.


The raw rubber market: Last week, affected by the decline in the raw material DMC market, the cost of the raw rubber industry was negative, and the bearish sentiment of the rubber compound market increased greatly. Although the raw rubber factory only dropped by 500 on Tuesday, it fell by 500 on Thursday. Some manufacturers fell again, and the mainstream quotations in the current raw rubber market were 32500-34000, which fell 500-2000 yuan/ton within a week. At present, the raw rubber market has a stable start-up load and sufficient supply. However, terminal demand continues to be flat, which drags down the market mentality and superimposes the weak performance of DMC. The inventory pressure of raw rubber factories continues to rise, and traders are also actively clearing warehouses. It is expected that raw rubber will be cleared this week. Apart from making up for the overall decline, it will continue to bottom out.

Rubber compound market: Due to the continuous callback of raw rubber prices, the support for the cost of compound rubber has weakened, and the offer of compound rubber market has also declined. The mainstream quotations of the compound rubber market are now 27500-29000, and some transactions in southern China have low prices. To 25000-26000 yuan/ton. In the case of the overall market with unfavorable sentiment, some rubber compound manufacturers have re-emerged in order to stimulate shipments, but the transaction feedback is still unsatisfactory. In addition, the downstream silicon product factories are going to the end of the year to checkout. The difficulties this year are known to be unprecedented. Many manufacturers have too much financial pressure at the end of the year and have a strong attitude to keep prices down.

On the whole, in the case of insufficient cost support and terminal demand delays, raw rubber will continue to lower its quotations, and the rubber compound market will undergo a new round of price wars.


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