SunSirs: The Silica Market Was Stable in January

Price trend

As of January 29th, the average price of rubber grade silica in the domestic market was 5,933.33 RMB/ton. In December, the silica market remained stable with limited price fluctuations, and the mainstream price remained at 6,000 RMB/ton.

Analysis review

In January, the overall market price fluctuation range of silica was limited, always maintained at around 6,000 RMB/ton. The overall negotiation atmosphere was flat, with downstream rigid procurement as the main focus and average demand. The enthusiasm for stocking was not strong, and manufacturers mainly offered discounts and took orders. The number of new orders was limited, mostly small orders. Latest quotations from enterprises: Jinan Jinjinquan Economic and Trade Co., Ltd. offered a price of 5,000 RMB/ton, Jinan Xinhou Trading Co., Ltd. offered a price of 5,500 RMB/ton, and Jinan Jinrihe Chemical Co., Ltd. offered a price of 6,000 RMB/ton.

Silica is used in colored rubber products to replace carbon black for reinforcement to meet the needs of white or translucent products. Silica also has super adhesion, tear resistance, heat resistance and aging resistance, so it can also replace part of carbon black in black rubber products to obtain high-quality rubber products, such as off-road tires, engineering tires, radial tires, etc., which are widely used.

On January 28, the silica commodity index was 133.63 points, unchanged from the previous day, a decrease of 13.70% from the highest point in the cycle of 154.84 points (2021-12-06), and an increase of 49.46% from the lowest point of 89.41 points on October 7, 2016. (Note: The cycle refers to 2011-09-01 present).

Market outlook

SunSirs' silica analyst believes that there was insufficient support on the upstream cost side and weak downstream demand. It is expected that the silica market will mainly operate stably in the short term, with limited price fluctuations.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.