Global Silicone Network News: On August 18, China's A-share silicone concept sector was active, with a gain of more than 6% as of the close. Among them, Chenhua (300610), Xin'an (600596), Dongyue Silicon (300821), and Hongbai New Material (605366) have strong daily limits. Hesheng Silicon (603260) rose 7.55% to 132.26 yuan, hitting the daily limit at one time, and closing the daily limit again at 8.20, to close at 148.03 yuan, and the current total market value is 159.08 billion yuan. In addition, Runhe Materials (300727) and Sibao Technology (300019) followed suit, with an increase of over 12%.
Overall, the market performance of the silicone sector this year is no less than that of the lithium battery industry chain. Looking at the price trend this year, compared with the low price in early February, the price of some silicone products has increased by more than 40%.
Looking ahead, considering that the 110,000-ton polysiloxane plant of Momentum in the United States is expected to be shut down by the end of 2021, the global supply of silicone production capacity will be tight. Superimposed on the peak consumer demand season in the third quarter, the silicone industry is expected to maintain a high degree of prosperity.
Specific to the A-share market, benefiting from the increase in organic silicon prices in the first half of the year, the performance of related leading companies hit a record high. As prices continue to rise, industry leaders are expected to benefit mainly.
Since August, as the raw material market continues to ferment, price increases have swept the entire silicone market. Following the price increase of raw materials such as titanium dioxide, a number of organic silicon companies followed suit and issued price increases. The price of organic silicon basic raw materials has almost "rised" continuously, and the increase has been even higher than that of each wave.
