Silicone soared more than 80percent in a month! Some downstream companies complain and others applaud

category:Finance
 Silicone soared more than 80percent in a month! Some downstream companies complain and others applaud


What is the situation?

Silicone monomer in short supply

The domestic DMC quotation of organosilicon has increased from 15000 yuan / ton on May 6th to 33000 yuan / ton on November 26th, with an increase of 120% in more than half a year. The increase has exceeded 80% since November. Source: Baichuan Yingfu

It is understood that the production of silicone monomer listed companies, at present most of the enterprises do not report, the actual single negotiation.

On the 27th, the 500000 T / a silicone monomer unit of Xinan Co., Ltd. operated smoothly and negotiated with each other.

Xingfa group silicone monomer 360000 tons / year, currently three sets of operation, the average load is about 80%, DMC temporarily closed on the 26th, the actual single negotiation.

Sanyou Chemical Co., Ltd. has a capacity of 200000 tons / year. The two sets of units are in normal operation. DMC will not make a report. The main task is to receive orders in the early stage of production scheduling.

According to Zhuo Chuang information monitoring, at present, most orders of domestic silicone monomer factories have been scheduled to the middle and late December, and the ability of new orders is insufficient. As of November 27, except Luxi Chemical Co., Ltd., which had spot sales, most of the other monomer plants did not receive orders, mainly owed orders in the early stage of delivery, and basically had no inventory.

According to industry insiders, silicone is a capital intensive industry, with a production expansion cycle of about 2-3 years, so it is difficult to build a large number of new production capacity in the short term. Domestic production capacity of 1.1 million tons is expected to be put into operation in 2021, but it is mainly concentrated in the second half of 2021. Only 400000 tons of production capacity of Hesheng silicon will be put into operation in the first half of 2021. This means that there is no room for expansion on the supply side in the short term, and prices are still strong in the near future.

It is difficult for some downstream enterprises to take delivery of goods

Main application source of silicone monomer: Baichuan Yingfu

In the interview, the reporter found that not only small enterprises, but also large enterprises in the industry also faced the problem of raw material procurement.

26, another production of sealant related to the listed company told reporters, previously the company generally has 1 to 2 months of raw material inventory, but now only 1 month or less than 1 month.

Raw materials rise sharply, how do downstream enterprises react? Industry insiders say that different scale enterprises have different price transmission capacity because of different customer groups. Some small enterprises have stopped production because of difficulties in getting goods and high production costs. The sealant industry is facing a reshuffle in this round of raw material price increase, and the industry concentration will be further improved.

It is understood that silicone monomer accounts for a high proportion in the sealant. According to the variety of sealant, the proportion of sealant in the product cost is 30% - 40% or 60% - 70%.

As the leading enterprises in the sealant industry, several listed companies such as Sibao technology, huitou new materials and Jitai Co., Ltd. said that although the rise of raw materials has a certain impact on the company in the short term, the impact of raw material rise has been basically transmitted through product price adjustment.

Sibao technology said that the upstream price increase should be dialectically considered. The company and its major customers signed open-ended contracts at the beginning of the year. That is, if raw materials rise, the companys products will also be adjusted accordingly. The companys current scheduling is also very tight, has been in mid December, the current product supply is in short supply. In the short run, because of the lag of product price rise and the rise of raw material price, a certain product profit will be squeezed, but in the long run, the industry concentration will increase. Now raw material manufacturers protect their core customers. It is relatively difficult for small enterprises to get raw materials now, and they are more sensitive to the rise of raw materials. If this situation continues for a period of time, the industry concentration is expected to further improve. Silicon treasure technology related person in charge told reporters.

Sibao technology is a leading enterprise in the field of organic silica gel. The field of construction glue has successfully entered the brand Library of Hengda, Biguiyuan, Greenland, Longhu, China Resources and other real estate groups. At the same time, the company expands products in the fields of photovoltaic, new energy vehicles, electronic and electrical.

The companys silicone sealant production capacity of 65000 tons, products are widely used in construction engineering, home decoration, container manufacturing, steel structure manufacturing and other fields. The products are positioned in the middle and high-end market. Among the top 100 real estate enterprises in China, more than 90 large-scale real estate enterprises have entered the brand library.

The relevant person in charge of the company recently told reporters that the prices of raw materials were relatively stable before September this year, even lower than last year. After September this year, the price of silicone raw materials has nearly doubled from the lowest point this year. The company has adjusted the price to digest the impact of rising raw materials. At present, the company has sufficient orders and is in the state of full load production.

On the 26th, Huitian new material related person in charge told reporters that the company has been through reasonable price increases to the downstream transmission of raw material prices. Previously, the company also said on the investor interaction platform that the price fluctuation of raw materials has a certain impact on the cost control of the company. At present, the company has sufficient inventory. At the same time, it will actively take measures to transmit to the downstream in a reasonable and orderly manner, digest the price rise factors and reduce the relevant impact.

Huitian New Material Co., Ltd. is the largest adhesive manufacturer in China. It has high-performance organic silica gel, polyurethane adhesive, acrylate adhesive, anaerobic adhesive, epoxy resin adhesive and other products. It is widely used in automobile manufacturing and maintenance, communication electronics, household appliances, led, rail transit, new energy, engineering machinery, soft packaging, high-end construction and other fields. Editor: Quan Zeyuan source of this article: Shanghai Securities Journal Editor in charge: Zhong Qiming_ NF5619

Huitian New Material Co., Ltd. is the largest adhesive manufacturer in China. It has high-performance organic silica gel, polyurethane adhesive, acrylate adhesive, anaerobic adhesive, epoxy resin adhesive and other products. It is widely used in automobile manufacturing and maintenance, communication electronics, household appliances, led, rail transit, new energy, engineering machinery, soft packaging, high-end construction and other fields.

Editor: Quan Zeyuan