Recently, various unexpected situations such as high temperatures, typhoons, epidemics, floods, heavy rains, and power rations have followed one after another. Some large domestic single factories have overhauled equipment and facilities or cannot operate normally, and the production and transportation of large amounts of raw materials have been restricted. The market supply relationship has tended to Tight, and some fell into interruption for a while. At the same time, many large overseas factories announced force majeure and were forced to cut production and suspend operations. Tight goods prices are rising, and a new round of price increases for silicones kicks off? 


Monitoring data shows that currently 20 chemical companies in China and abroad have announced price increases, and some leading companies have even made arrangements for September price increases. The top 10 domestic monomer companies are also collectively closed today, and the quotations of the holders have risen by 500 yuan per ton, and the limited supply is limited. Today, DMC holders quoted a maximum of 31,000 yuan. According to the industry, the market price continued to rise last month until it softened slightly in the last few days of the month, but rebounded sharply after only a few days. The quotation of a single company drops by 100 and rebounds by 500 each time. This is what the previous issues said: "Every time you squat, you are jumping higher."

As for the main reason for the price increase, most of the monomer plants said it was affected by the sharp rise in raw material prices and the continued upward trend. In addition, the shortage of shipping containers and rising freight rates under the raging epidemic, as well as the rise in coal and electricity prices brought about by global energy shortages, have put companies under severe pressure on the cost side.

Silicone sealant raw materials reference price on August 5

New material DMC: the highest price is 31 yuan/KG, soaring ↑
Cracking DMC: 26 yuan/KG soaring ↑

Domestic D4: 31-32 yuan/KG up ↑
Import D4: 33.5 yuan/KG up ↑

Waste silica gel: 7.6-8.5 yuan/KG up↑

New material 107 glue price: 31 yuan/KG, up ↑
Pyrolysis material 107 glue: 26 yuan/KG, up ↑

New raw rubber price: the highest reported 33.5 yuan / KG rose sharply ↑

Shin-Etsu: Low inventory and stable price
Dow: Low inventory, stable prices
WACKER: Low inventory and stable prices

Precipitation glue price: 29 yuan/KG, up ↑
Fumed gum price: 33.5 yuan/KG, up ↑
Dimethicone (domestic): 30.5 yuan/KG stable
Cracking material silicone oil: 26 yuan/KG stable
Dimethicone (import): 36 yuan/KG stable
▲Data source: related companies on August 5, for reference only, the market changes too fast, subject to actual negotiations

Because a lot of company can't bear the impact of the price increase of organic silicon raw materials. Although many mid- and downstream companies have begun to raise prices, but due to product attributes and the time limit for transmission to consumer terminals, the price increase rate is far behind the price increase of organic silicon raw materials. Many silicone mid-stream and downstream companies lament: When can the price of raw materials be stopped?
 
Industry insiders believe that: transportation obstruction caused by the spread of the epidemic, combined with extreme weather and frequent production accidents in many countries, has resulted in increased uncertainty in the domestic silicone market in the second half of the year, and the overall market inventory may remain low for a long time. Under the tight supply of goods, mid- and downstream enterprises should broaden their purchase channels, and reasonable stocking will be the top priority.