SunSirs: The Silica Market Was Mainly Focused on Stable Operations (February 22-29)

Price trend  

According to the analysis system of the commodity market of SunSirs, as of February 29th, the average price of high-quality rubber grade silica in China was 6,000 RMB/ton. This week, the silica market price remained stable, with no significant changes compared to the same period last week. After the Spring Festival, the demand for silica in the market was still good, and enterprises began to resume production one after another, with a significant increase in supply. Downstream demand was average, and the overall market mainly focused on procurement for basic needs, As of February 29th, the mainstream price was around 6,000 RMB/ton.

Analysis review

This week, the price of silica in the market had remained stable, maintaining the previous trend. The mainstream price was around 6,000 RMB/ton, and the negotiation atmosphere was still good. Demand based replenishment was the main focus, while upstream cost support was average. Downstream rigid demand procurement was the main focus, and inventory consumption was slow. The overall market upward space was limited, with manufacturers mainly offering discounts and taking orders, and the number of new orders was limited. Latest quotations from enterprises: Jinan Jinrihe Chemical Co., Ltd. offered a price of 6,000 RMB/ton, Shandong Botao Group Co., Ltd. offered a price of 5,600 RMB/ton, and Jinan Century Lianxing Economic and Trade Co., Ltd. offers a price of 6,000 RMB/ton. The overall price of silica is mainly stable.

Chemical index: On February 28, the chemical index was 869 points, a decrease of 1 point from the previous day, a decrease of 37.93% from the highest point of 1,400 points in the cycle (2021-10-23), and an increase of 45.32% from the lowest point of 598 points on April 8, 2020. (Note: The cycle refers to 2011-12-01 present).

Market outlook

SunSirs' silica analyst believes that in the short term, the silica market is mainly stable with a stronger trend, and the mainstream price is maintained at around 6,000 RMB/ton.

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