After the Spring Festival holiday, China's Silicone DMC market rose steadily. The reporter of China Securities Journal learned from a number of silicone manufacturers that at present, most silicone manufacturers have abundant orders on hand. In order to cope with the rising market demand, the production line of silicone enterprises maintains a high operating rate.
Insiders said that the continuous recovery of downstream demand is the main reason for the recovery of silicone prices, and the overall profitability of the industry is expected to rebound significantly in the first quarter of this year.
demand continues to recover
Since January 28, China's Silicone DMC market has started to rise, and the wind silicone index has risen 9.84% to 4112.80 points. Since February 14, the downstream demand of silicone DMC market has continued to recover.
Organosilicon, that is, organosilicon compounds, including all kinds of small molecular compounds and high molecular polymers. Its downstream products generally include silicone rubber, silicone oil and silicone resin, which are widely used in construction, electric power, electronics, automobile, textile and other fields. At present, the construction field is the main application terminal of silicone, accounting for more than 30%.
According to the monitoring data of the business agency, as of February 15, the average price of organosilicon DMC market in the mainstream areas monitored by the business agency was 32080 yuan / ton. Compared with the price on February 13, the average price increased by 660 yuan / ton, or 2.1%; Compared with the price on February 1, the average price increased by 420 yuan / ton, or 1.33%.
According to the business news agency, recently, large factories in Shandong have continuously raised the ex factory price of silicone DMC, with a cumulative increase of 1300 yuan / ton. The ex factory price of silicone DMC in this factory has risen to 32300 yuan / ton, and most of the quotations of other factories have followed the increase of the market, with the adjustment range from 300 yuan / ton to 500 yuan / ton.
Zhang Yingying, an analyst of Zhuo Chuang information industry, believes that the recovery of downstream demand is the main reason for the recovery of silicone prices. Many enterprises have stock demand before the Spring Festival. In addition, many downstream enterprises have copied the bottom after the sharp decline of silicone prices. At present, the inventory has bottomed out, and the orders of silicone enterprises have obviously recovered.
On February 11, Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) said on the investor interaction platform that the company's organic silicon order receiving and production scheduling are arranged as a whole, without distinguishing between foreign markets. At present, there are sufficient pre orders and the inventory is low.
Shandong Dongyue Organosilicon Materials Co.Ltd(300821) also said that compared with the end of the fourth quarter of last year, the current silicone market demand has recovered, and the company's order situation is also relatively ideal.
profit is expected to improve
Benefiting from the strong downstream demand of the industry, the performance of silicone industry is satisfactory. On February 16, Tangshan Sanyou Chemical Industries Co.Ltd(600409) released the performance express, which showed that the company's net profit attributable to shareholders of Listed Companies in 2021 was 1.671 billion yuan, a year-on-year increase of 133.03%.
Tangshan Sanyou Chemical Industries Co.Ltd(600409) said that in 2021, the prices of the company's leading products soda ash, viscose staple fiber, caustic soda, PVC and silicone products rose sharply year-on-year. The supply market was affected by the transmission of the sales market and regional environmental protection constraints, and the prices of the company's main raw materials pulp, calcium carbide, silicon block, raw coal and raw salt continued to rise. The company focused on its main business, strengthened management and control, paid close attention to efficiency, and achieved significant year-on-year growth in operating performance.
In this context, listed companies have strengthened the layout of silicone. On the evening of February 14, silicone leader Hoshine Silicon Industry Co.Ltd(603260) announced that it planned to invest and construct the "silicon-based new material industry integration project of Xinjiang central Hoshine Silicon Industry Co.Ltd(603260) Co., Ltd." with an estimated total investment of 17.5 billion yuan. The company said that in 2021, benefiting from the strong rebound in the downstream demand side of the industry and the impact of industrial policies, the industrial silicon and silicone industries ushered in a strong boom cycle, and the production and sales of the company's main products were booming during the year. The company expects the net profit to reach 8.5 billion yuan to 8.7 billion yuan in 2021, with a year-on-year increase of 505.28% to 519.52%.
On the evening of February 6, Shandong Dongyue Organosilicon Materials Co.Ltd(300821) announced that the "300000 t / a silicone monomer and 200000 t / a silicone downstream product deep processing project" of the raised investment project had achieved phased results, and the 300000 t / a silicone monomer device had successfully produced qualified silicone ring products on January 31, 2022. Subsequently, the company will actively promote the trial production of 200000 t / a deep processing device for silicone downstream products.
Shandong Dongyue Organosilicon Materials Co.Ltd(300821) it is estimated that the net profit attributable to the parent company will reach 1.013 billion yuan to 1.289 billion yuan in 2021, with a year-on-year increase of 260.72% to 359.1%. The company said that during the reporting period, the market demand of the company's silicone products was strong, the price increased significantly year-on-year, and the profitability increased significantly compared with the same period last year.
Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) it is estimated that the net profit attributable to the parent company will reach 2.6 billion yuan to 2.7 billion yuan in 2021, with a year-on-year increase of 344% to 362%. The company said that during the reporting period, the prices of its main products, including glyphosate, silicone and industrial silicon, increased significantly year-on-year, and the profitability increased significantly year-on-year.
Looking forward to the future, industry insiders said that the silicone market is expected to be relatively stable this year, and the profit space of silicone production enterprises has also been repaired.
