According to the monitoring of Baichuan Information, since mid-February, the domestic organic silicon market has been driven by low corporate inventories and good downstream orders, and the prices of basic products such as DMC, raw rubber, and 107 rubber have bottomed out. After the DMC price rose by 1.67% on February 18, it rose again by 1.09% on the 19th. The price in the East China market has reached 18,500 yuan / ton; the market price of raw rubber in East China has reached 19,500 yuan / ton, up 500 yuan from the 18th; The price was 18,800 yuan / ton, up 300 yuan from the 18th.


According to the analysis, due to the recent general overhaul of manufacturers and the apparent decline in the operating rate during the Spring Festival, the supply of organic silicon market has decreased, and the inventory level of enterprises has been low. And the downstream procurement has a stronger mentality to get goods. With the arrival of the peak season in March, downstream procurement demand will be further released. In addition, recent progress has been made in the Sino-US negotiations, and the ease of the trade war is conducive to the improvement of the export situation. It is expected that with the improvement of upstream and downstream improvement, organic silicon is expected to usher in a periodical rising market, and the profitability of industry companies is expected to improve.


In terms of related companies, according to the Silicone section of the selected stock treasure library (xuangubao.cn),


Xin'an Co., Ltd .: The company is one of the second largest organic silicon monomer enterprises and the largest herbicide glyphosate manufacturer in China. It has an organic silicon monomer production capacity of 340,000 tons, equivalent to DMC's equity capacity of 145,000 tons, and is a national business chain. The most complete and largest silicon-based new materials company. The company benefited from the increase in the prices of silicone and glyphosate in the first half of the year. The company's net profit increased by 237.20% year-on-year. At present, the company's PE is only 7.4, and the valuation recovery is expected to follow in the future;


Hesheng Silicon Industry: The company is a leading company in China's industrial silicon and organic silicon industry. In the first half of the year, the company's organic silicon monomer production capacity was 330,000 tons (corresponding to DMC equivalent of 165,000 tons), and its supporting power plants and graphite electrode plants were Production started in July, and the operating rate is expected to rise significantly in the second half of the year. With the concentration of the silicone industry increasing, prices continue to strengthen, and performance is expected to continue to improve.


Sanyou Chemical: It has an annual output of 200,000 tons of organic silicon monomer, with a market share of about 10%, ranking among the top five in the industry. Self-produced organic silicon is mainly used to produce room temperature adhesives, high temperature adhesives, silicone oils and defoamers.


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