Latest Silicone Chemicals Information
At the end of March, the sentiment of domestic chemical industry market dealers holding off on quotations and hoarding stocks has continued to intensify. The number of enterprises suspending quotations has been expanding continuously. Coupled with multiple factors such as concentrated maintenance of production facilities in spring, restricted production capacity, low inventory levels, and abundant orders to be delivered, the supply of goods in the market has continued to tighten. Dealers in the industry have a strong bullish sentiment for the future market, and many manufacturers have entered a state of sealing quotations and observing the market, adjusting prices and preparing for strength. The upward trend of chemical product prices has been steadily advancing.
According to incomplete statistics, currently over 200 chemical and energy enterprises across the country have officially announced to stop reporting. This includes dozens of sub-sectors such as oil and gas refining, fine chemicals, and rubber and plastic raw materials, covering hundreds of mainstream products. The chemical production areas in Shandong, Hebei, and Henan provinces have a relatively high proportion. The main reasons for enterprises to stop reporting are the significant fluctuations in raw materials, low inventory levels, and supply guarantee contract holders. Currently, the trading pace in the market has significantly slowed down.
Under the strong overall market trend, the prices of specific chemical products have risen significantly. Last week, the prices of over 100 types of chemical raw materials in China continued to rise, and more than 200 types remained at high levels. Among them, the basic chemical raw material ferrous sulfate exhibited particularly extreme fluctuations, with a weekly increase of up to 42% and a year-on-year increase of as high as 112%. This raw material is widely used in water purifiers, pigments, preservatives, and other fields. The sharp increase in its price is directly pushing up the production costs of downstream enterprises and significantly reducing their profit margins.
