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SunSirs: The Market of DMC Is Downward All The Way Since Entering November

November 14 2019 13:10:40     SunSirs (John)

Price trend

According to the data monitoring of SunSirs, as of November 13, the average market price of organosilicon DMC in several major areas monitored by the data is 16766 RMB/ton, down about 70 RMB/ton, or 0.4% compared with the beginning of the month (November 1).


Analysis review        

Product: From the beginning of November to now, the silicone market is unpredictable, and the market is under various pressures. The whole market is dominated by weak consolidation. Most of the cargo holders are trapped in losses, traders and dealers have high stocks. The downstream purchases on demand, and the cautious stock up mentality cover the whole silicone industry chain market. Most of the small and medium-sized manufacturers have fierce competition. The decline of orders directly affects the profit and loss of small factories, and also restricts their demand for upstream raw materials to a certain extent. On November 5 last week, the market of organosilicon DMC was slightly increased. On November 5, the data monitoring showed that the average price of the market was around 16900 RMB/ton, which was slightly increased by 70 RMB/ton compared with that on November 1. After a week of maintenance, starting from the beginning of this week (November 11), most of the mainstream manufacturers in the market have successively appeared to pay attention to the price of silicone DMC products, and the price has almost reached a new low in the year. Up to now, most of the manufacturers of silicone DMC are offering quotations in the market. The price reference is 16-17.5 RMB/KG. The low price has not driven the rush of the downstream market. The transaction is still in a slow state.

Industry chain: Recently, the prices of silicone oil and 107 rubber products in the downstream of organosilicon DMC have decreased slightly. The overall market is weak, and the market is stable temporarily. The downstream enterprises basically buy and use the products as they need. At present, the average reference price of 107 rubber in East China, South China and North China has remained stable at 17-18.5 RMB / kg (cash transfer), and the actual negotiated transaction price maybe make a small profit.


Market outlook

Analysts of SunSirs believe that: with the coming of winter, the market of organosilicon DMC has basically entered the off-season, and the trading atmosphere of the whole market is not active. In the short term, the overall price of organosilicon DMC may not be effectively back to the high point.


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