August 8: Spot market explores upward trends!

Entering Thursday, regardless of your beliefs or purchases, single factories have continued to keep prices stable or implement slight increases. Currently, major manufacturers have not yet made any adjustments, but it’s highly likely they won’t act contrary to this trend, as stabilizing orders remains positive. For the mid to downstream market, with the continuous slight rise in DMC prices, many companies with insufficient inventory are seizing the opportunity to replenish at lower prices, leading to improved orders. Single factories are showing strong sentiments in defending prices. However, terminal demand remains weak, and while bearish sentiments have largely subsided, the bullish support is limited. Thus, downstream companies are hesitant to accept high-priced raw materials, currently focusing on low-price purchases.

Overall, the organic silicone market's rebound has begun to sound its horn, and the increasing frequency of single factories suspending sales further signals price hikes. Currently, single factories are quoting DMC at approximately 13,300-13,500 yuan/ton. With the price increment notice set to be implemented on August 15, expect further upward push in mid-August.

107 Glue and Silicone Market:

This week, rising DMC prices provide support for 107 Glue and silicone pricing. This week, 107 Glue prices are at 13,600-13,800 yuan/ton, while major players in Shandong have temporarily halted quoting, with some slight increases of 100 yuan. Silicone pricing is reported to be 14,700-15,800 yuan/ton, with localized increases of 300 yuan.

In terms of orders, silicone adhesive companies are awaiting further developments. The top manufacturers have already stocked up significantly last month, and the current bottom-fishing sentiment is moderate. Additionally, many enterprises are facing tight cash flow, leading to weak procurement demands. In this context, the supply-demand dynamics in the 107 glue market are polarizing; subsequent price hikes in line with rising DMC prices may result in slight increases.

Furthermore, major manufacturers have significantly increased prices for high-hydrogen silicone by 500 yuan ! The mainstream pricing for high-hydrogen silicone oil currently ranges from 6,700 to 8,500 yuan/ton. Regarding methyl silicone oil, as silicone ether prices have retreated from their highs, silicone oil companies maintain a marginal profit margin. In the future, prices may rise with DMC hikes, but the fundamental demand from downstream remains limited. Therefore, to sustain smooth order taking, silicone businesses are cautiously adjusting prices, primarily maintaining stable quotes. Recently, foreign silicone has also remained unchanged, with distributor sporadic quotes between 17,500 and 18,500 yuan/ton, with actual transactions being negotiated.

Pyrolysis Silicone Oil Market:

Currently, new material suppliers are slightly increasing prices, prompting downstream replenishments. However, pyrolysis suppliers are constrained by supply-demand issues, making significant improvements in the market challenging. As the upward trend has yet to be pronounced, pyrolysis suppliers are waiting for rebounds to effectively secure orders; currently, pyrolysis silicone oil is quoted between 13,000 and 13,800 yuan/ton (tax excluded), operating cautiously.

Regarding waste silicone, while there has been some movement under the bullish market sentiment, pyrolysis suppliers are exceptionally cautious about bottom fishing due to prolonged losses, primarily focusing on depleting their existing stock. Waste silicone recovery companies are not simply raising prices indiscriminately; currently, they report slight increases, priced between 4,200 and 4,400 yuan/ton (tax excluded).

In summary, if the price of new materials continues to rise, there may be certain improvements in the transactions of pyrolysis and waste silicone recovery. However, turning losses into profits requires cautious price adjustments, as leaps could lead to unrealistic price hikes with no actual transactions. In the short term, there may be slight improvements in trading atmosphere for pyrolysis materials.

Demand Side:

Since the beginning of this year, favorable policies in the real estate market have bolstered demand in the construction adhesive sector, aiding some silicone adhesive companies’ expectations for “golden September”. However, ultimately, these favorable policies lean towards stability, making rapid improvement in consumer levels unlikely in the short term. Current demand release is still gradual. Additionally, from the end-user market perspective, the orders for silicone adhesive remain relatively sparse, especially in the summer, where outdoor high-temperature agricultural projects reduce the need for silicone adhesive. As a result, manufacturers are continuously adopting price-for-volume tactics to stimulate transactions; thus, silicone adhesive companies exhibit caution towards stockpiling in response to rising prices. Moving forward, inventory management will hinge on order fulfillment, maintaining inventory levels within a safe range.

Overall, while there’s an upward trend upstream, it has yet to generate a surge in downstream orders. Under the unbalanced supply-demand landscape, many companies still face the challenge of insufficient orders. Therefore, amid the upcoming "golden September and silver October", both bullish and cautious sentiments coexist. Whether prices genuinely increase by 10% or just spike temporarily remains to be seen, with another industry gathering set to take place in Yunnan, raising expectations for joint price stabilization. Going forward, it’s crucial to remain vigilant of price fluctuations and capacity changes in Shandong as companies seek to balance their sales rhythm.

Patent Summary:

This invention relates to a preparation method of vinyl-terminated polysiloxane using dichlorosilane as a raw material, which, after hydrolysis and condensation reactions, yields the hydrolyzate. Subsequently, under acidic catalysis and the presence of water, polymerization occurs, and via a reaction with vinyl-containing phosphate silane, vinyl termination is achieved, culminating in the production of vinyl-terminated polysiloxane. This method, originating from dichlorosilane monomers, simplifies the traditional ring-opening polymerization reaction process by avoiding initial cyclic preparation, thereby lowering costs and ensuring easier operation. The reaction conditions are mild, post-treatment is simpler, the product demonstrates stable batch quality, is colorless and transparent, making it highly practical.

Mainstream Quotes (as of August 8):

- DMC: 13,300-13,900 yuan/ton

- 107 Glue: 13,600-13,800 yuan/ton

- Ordinary Raw Adhesive: 14,200-14,300 yuan/ton

- High Polymer Raw Adhesive: 15,000-15,500 yuan/ton

- Precipitated Mixing Adhesive: 13,000-13,400 yuan/ton

- Fumed Mixing Adhesive: 18,000-22,000 yuan/ton

- Domestic Methyl Silicone Oil: 14,700-15,500 yuan/ton

- Foreign Methyl Silicone Oil: 17,500-18,500 yuan/ton

- Vinyl Silicone Oil: 15,400-16,500 yuan/ton

- Pyrolysis DMC: 12,000-12,500 yuan/ton (tax excluded)

- Pyrolysis Silicone Oil: 13,000-13,800 yuan/ton (tax excluded)

- Waste Silicone (raw edge): 4,200-4,400 yuan/ton (tax excluded)

Transaction prices may vary; please confirm with manufacturers. The above quotes are for reference only and should not be used as a basis for trading. (Price statistics as of August 8)

107 Glue Quotes:

- East China region:

107 Glue operating smoothly, quoted at 13,700 yuan/ton (including tax, delivered) with some temporary suspension of quotes, actual trading negotiated.

- North China region:

107 Glue stable operating with quotes from 13,700 to 13,900 yuan/ton (including tax, delivered), actual trading negotiated.

- Central China region:

107 Glue temporarily not quoted, actual trading negotiated due to reduced production load.

- Southwest region:

107 Glue operating normally, quoted at 13,600-13,800 yuan/ton (including tax, delivered), actual trading negotiated.

Methyl Silicone Oil Quotes:

- East China region:

Silicone oil plants operating normally; conventional viscosity methyl silicone oil quoted at 14,700-16,500 yuan/ton, vinyl silicone oil (conventional viscosity) quoted at 15,400 yuan/ton, actual trading negotiated.

- South China region:

Methyl silicone oil plants running normally, with 201 methyl silicone oil quoted at 15,500-16,000 yuan/ton, normal order taking.

- Central China region:

Silicone oil facilities currently stable; conventional viscosity (350-1000) methyl silicone oil quoted at 15,500-15,800 yuan/ton, normal order taking.