The peak demand season in March parallels the expansion of production capacity! How high can silicone go?

107 rubber market: In February, the domestic 107 rubber market rose. Last week, the market price of 107 rubber was 35000-36000 yuan / ton, an increase of 10.42% in the month. Due to the abundant pre-orders of 107 plastics in the single plant, the overall warehouse pressure is controllable. 107 plastics actively follow up the DMC increase. Other 107 plastics factories have a prominent shortage of DMC supply. In order to reasonably control costs, they are more cautious in receiving orders based on raw material inventory. It is expected that in early March, the supply of 107 rubber is still tight.

From the perspective of demand, the downstream room temperature rubber market is gradually entering the peak season, and the policy of the real estate industry has also improved after the year, and the demand is expected to rise. , Silicone rubber manufacturers actively follow up, while selectively accepting orders. In February, a number of large silicone rubber manufacturers announced an increase of 5%-15%, but the terminal feedback on the supply of silicone rubber that was rapidly rising was general, and the wait-and-see atmosphere still existed.

 Overall, the current price range of 107 rubber is stable at a high level under the support of fundamentals. Although the terminal has wait-and-see, demand will definitely increase in March. It is expected that the first 107 rubber will run at a high level in mid-March.

Silicone oil market: In February, the domestic silicone oil performance was optimistic. Last week, the silicone oil market was quoted at 40,500-41,000 yuan/ton, an increase of 15.54% this month. First, DMC prices continue to rise, and cost support continues to increase; then, in terms of demand, domestic downstream demand has steadily increased, export orders have continued to exert force, and the post-holiday stockpiling has been followed up quickly; secondly, foreign brands of silicone oil have risen again, and agents’ quotations are concentrated at 47,000- The range of 49,000 yuan/ton is relatively large with the domestic silicone oil price, which further benefits the domestic silicone oil market.

  On the demand side, March is the peak season for domestic downstream demand, and a large foreign factory has shut down its equipment for maintenance. The silicone oil gap still needs to be supplemented by domestic companies, and the price of export orders is higher than that of domestic ones. Silicon oil manufacturers are more inclined to take the export market. According to our understanding from a number of silicone oil manufacturers, orders were basically placed in the middle and late March, and the inventory and arrival of DMC were lower than expected. It is expected that in March, the silicone oil market will continue to be optimistic. With sufficient pre-sale orders, manufacturers will continue to shift the focus of new orders.