Summary and Trend Chart of Silicone Market (August 22–28, 2016)

In the domestic market, the market price of organic silicon DMC remains between 13500.00 and 14500.00 yuan/ton, and the mainstream transaction price remains around 14000.00 yuan/ton. Compared with last week, the price has increased by 200.00 yuan/ton, with a growth rate of 1.45%; The market price of dimethyl silicone oil remains in the range of 15500.00 to 16500.00 yuan/ton, and the mainstream transaction price remains around 16000.00 yuan/ton, with no change in price compared to last week.

In the international market, the FOB export price of organic silicon DMC remains around 2050.00-2200.00 US dollars/ton, and the mainstream transaction price remains around 2100.00 US dollars/ton, with no change from last week's price; The FOB export price of 201 methyl silicone oil remains around 2500.00 to 2700.00 US dollars per ton, with the mainstream transaction price remaining around 2560.00 US dollars per ton. Compared to last week, the price remains unchanged.

This week, the domestic organic silicon DMC market has been operating steadily. At present, the mainstream price of organic silicon DMC in China is around 14500 yuan/ton, and the market transaction center has shifted upward.

In terms of products, the overall stability of the organic silicon market this week has been affected by factors such as the G20. There are many companies in Zhejiang that have stopped production. The mainstream price of organic silicon DMC in China is around 14500 yuan/ton, and the transaction price has not shown a significant increase for the time being. Some manufacturers' ex factory prices have risen to 15000 yuan/ton. At present, domestic organic silicon enterprises have insufficient supply of goods. Although downstream factories mainly rely on inquiries, with the consumption of raw materials in the early stage of procurement, orders for organic silicon DMC are gradually increasing. It is reported that an industry conference was held in Jinan on August 23, and it was agreed that the DMC price should not be lower than 14500 yuan/ton of clean water acceptance delivery price. After the conference, enterprise offers were gradually raised. As of this Thursday, the mainstream offers in the domestic DMC market are centered around 14500-15000 yuan/ton. In terms of equipment, currently affected by environmental protection and G20 factors, organic silicon enterprises in Zhejiang and Jiangxi regions have stopped or reduced production.

In terms of the industrial chain, the upstream metal silicon price of organic silicon DMC is currently stable with a slight decrease, and the market is mostly wait-and-see with few actual orders. The operating load of downstream rubber and silicone oil manufacturers is relatively low, and there is a lot of room for actual negotiations. The inventory of manufacturers is reasonable, and observation is the main approach.

In terms of industry, the G20 summit to be held in Hangzhou, China from September 4th to 5th, 2016, has led to the shutdown and maintenance of facilities by Zhejiang Xin'an Chemical Group and Zhejiang Hesheng Silicon Industry Co., Ltd. Currently, the ex factory price of Xin'an is 14000 yuan/ton, and the ex factory price of Hesheng Silicon Industry is 15000 yuan/ton. Inner Mongolia Hengyecheng Group Co., Ltd. is currently resuming production. Shandong Jinling Chemical's annual production capacity of 150000 tons of organic silicon monomers has resumed production. Tangshan Sanyou has suspended production for maintenance. Luxi does not accept orders, it may take a month for parking and maintenance, and Dongyue has a small quantity and cannot ship. The decrease in production capacity in the domestic silicone market, coupled with the gradual depletion of market inventory, has driven the heating up of the silicone DMC market.

In summary, analysts believe that the overall operating rate of domestic organic silicon DMC manufacturers has decreased, and some manufacturers have stopped production for maintenance, resulting in a decrease in overall domestic production and a gradual balance between supply and demand. At the same time, the price of organic silicon DMC was relatively low recently, and there were many downstream orders, resulting in inventory consumption by manufacturers and insufficient supply of organic silicon DMC in the market. With the gradual consumption of raw materials in the downstream market, the supply of organic silicon DMC in the market will become tight. It is expected that the market price of organic silicon DMC will remain stable with a moderate upward trend in the short term.

Product definition:

Monomer DMC: The primary form of dimethyl cyclic siloxane (DMC) is an organic-inorganic compound synthesized by hydrolysis of dimethyl dichlorosilane as the main raw material, with silicon oxygen (Si-O) bonds as the main chain and organic groups directly connected to silicon atoms. Here, the purity (ring) is ≥ 99.8%; PH value 7; Refractive index (25 ℃) 1.3945-1.3946; Moisture content<0.05% is the main indicator.

Dimethyl silicone oil: Dimethyl silicone oil is a type of silicone oil composed of polydimethylsiloxane. Chemical standard HG/T 2366-1992. This is based on the kinematic viscosity (25 ℃) of mm4/s: 500 ± 18; Refractive index (25 ℃): 1.400-1.410; Flash point (cup opening method) ℃: 300; Specific gravity (25 ℃): 0.965-0.975 is the main indicator.