SunSirs: The Silica Market Had Been Operating Steadily This Week (March 15-22)

Price trend

According to the commodity market analysis system of SunSirs, as of March 22, the average price of high-quality rubber grade silica in China was 5,833.33 RMB/ton. This week, the silica market price remained stable, with limited fluctuations compared to the same period last week. The overall market supply and demand balance of silica was the main factor, and the mainstream market price was around 6,000 RMB/ton.

Analysis review

This week, the domestic price of silica had remained stable. As of March 22, downstream demand was weak, and the purchasing atmosphere was cold. Downstream procurement was mainly on demand, and the willingness to hoard goods was not obvious. Upstream raw material hydrochloric acid prices had fallen, and the focus of negotiations was relatively low. The domestic hydrochloric acid market price had dropped significantly this week, with the average market price dropping from 100 RMB/ton at the beginning of the week to 92.5 RMB/ton at the weekend, a decrease of 7.50%. The weekend price had dropped by 53.28% year-on-year, and silica lacked favorable support on the cost side. Latest quotation from the manufacturers: Jinan Jinrihe Chemical Co., Ltd. quoted 5,000 RMB/ton, which remained stable compared to the same period last week. Jinan Century Lianxing Economic and Trade Co., Ltd. quoted 6,000 RMB/ton, and the price of silica did not fluctuate significantly this week. Shandong Botao Group Co., Ltd. quoted 5,000 RMB/ton. The manufacturer stated that the downstream demand was small, shipments were slow, small orders were the main focus, and the number of new orders was limited.

Chemical index: On March 21, the chemical index was 856 points, a decrease of 1 point from the previous day, a decrease of 38.86% from the highest point in the cycle of 1,400 points (2021-10-23), and an increase of 43.14% 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 there was insufficient demand in the silica market, coupled with a lack of support from upstream costs, it is expected that the silica market will lack upward momentum in the short term and maintain a stable and weaker trend.

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