(Original title: Organic silicone market supply is tight and prices rise)
Organic silicone concept stocks benefit from rising organic silicon prices
Entering March, the domestic organic silicone intermediate DMC quotation has It generally stands above 20,000 yuan/ton, up nearly 10% year-to-date, and nearly 60% higher than last year’s low. At present, the inventory of silicone monomer companies remains low, and they are mainly completing early orders and suspending orders from small customers. Downstream players are generally optimistic about the market outlook and have obvious intentions to stock up on goods. The supply of goods in the market has been tight for nearly half a year.
Market analysts believe that rising costs and reduced supply are the main reasons for this round of price increases for organic silicon. On the cost side, the rise in energy prices will raise the price center of the silicone industry; on the supply side, losses have caused some production capacity to be shut down for a long time, and industry concentration continues to increase. Environmental protection has led to the normalization of some production capacity interruptions, and the industry’s excess level has been greatly alleviated. As prices rise, the entire industry is expected to usher in a wave of inventory replenishment, prices can be smoothly transmitted downwards, and industry profits will also increase.
Focus on the target
Xinan Co., Ltd.: the second largest organic silicon monomer manufacturer in China. In recent years, the company has optimized its resources by acquiring the organic silicon assets of Hongda Lihong Company. configuration, the gross profit margin was still 16.15% during the cold winter period of the silicone market.
Sanyou Chemical: Mainly engaged in soda ash and chemical fiber industries, with organic silicon as its subsidiary industry. The company already has a production capacity of 100,000 tons of organic silicon and will build a new 100,000-ton device at the end of 2014. <!–
