At present, the market demand for silicone is strong, and the company's major products such as silicone intermediates, 107 glue and 110 glue are in short supply, resulting in a tight production capacity.At present, the market price of silicone DMC has skyrocketed, reaching the highest point in history.DMC's high price is strong, and the basic raw materials of organic silicon in Guangdong, where the middle and downstream companies are most concentrated, are in short supply. The mid-stream and downstream are "grabbing".Goods merchants have a clear bullish mentality, and they are reluctant to sell, and their quotations have risen.

Yesterday, the A-share silicone sector continued to rise, which led to the rise of individual stocks in the sector.Since the beginning of August, the Flush silicone concept segment (885912) has repeatedly set new highs, and the cumulative increase has exceeded 40%.On the news, silicone DMC has shown a sustained upward trend recently, with prices rising continuously, and the market price has hit a new high in the past two years.At present, most domestic silicone monomer plants, including A-share listed companies, are producing at full capacity, and the spot supply on the market is tight, which can be described as "a single order is hard to find."Most corporate orders have been scheduled until late November to the end of November.

According to industry insiders, organic silicon companies will enter a centralized maintenance period in August. The operating rate in the first half of this month is slightly lower than that in early July, and downstream inventories are gradually decreasing. Therefore, the price of organic silicon will be difficult to reduce in the short term.

Imports are tight, and the overall on-site supply is relatively tight, supporting the spot market.However, high-priced transactions are not easy, and some product manufacturers are not shipping smoothly. Under the pressure of cost, the mindset of the holders is general and stable.The downstream has limited ability to accept high prices, and the downstream industry has a low operating rate. The industry has a cautious attitude and just needs to purchase.

In the long run, silicone has a wide range of application scenarios, with more than 7,000 types of terminal segmentation products.It is estimated that in the next 5 years, the downstream market of organic silicon will usher in major outbreaks in various fields. By 2025, the relevant market will rise from the current 50 billion yuan to 94.5 billion yuan, and the prospects are very promising.

my country has become a major producer and consumer of organic silicon, and the advantages of domestic organic silicon products have become increasingly prominent.According to data from the National Silicon Industry Green Development Strategic Alliance, my country has transformed from a net importer of organic silicon to a net exporter since 2014. In 2020, the cumulative export of organic silicon was 243,000 tons, an increase of 8.5% over the previous year; the import was 152,000 tons. An increase of 2.9% over the previous year.

Industry organizations predict that silicone market prices are expected to be high in the second half of 2021, and that domestic new production capacity will gradually invest another 400,000 tons of production capacity in the second half of the year, but the actual output increase is expected to be around 2022.

On the whole, the increase in output in 2021 is mainly due to the new 400,000 tons of production capacity of Hesheng Silicon Industry. This capacity has begun to be released in the first half of this year, but the supply situation is still relatively tight.

Securities institutions believe that due to the vacuum period of new production capacity and the low inventory of the whole industry, the price of organic silicon products is expected to continue to rise in the future.The sharp rebound in organic silicon prices has increased the performance of related companies. As prices continue to rise, industry leaders are expected to benefit from the focus.

Huangshan Qiangli Chemical Co., Ltd., as a company that continuously innovates the research and development and production of organic silicon products.At present, we have successfully completed the upgrade of the production line. In addition to greatly increasing the production capacity, we have also achieved better control of the quality of bulk goods.Qiangli Chemical's main production capacity is placed on the two commonly used silicone oils, polydimethylsiloxane (dimethyl silicone oil) and vinyl-terminated silicone oil, as well as other products such as silicone oil emulsion and textile auxiliaries.Catering to the general trend of the domestic and foreign silicone market, we will open up a new world of our own-good silicone oil, QiangLi manufacturing, win with quality, and win the world with quality.