China Xiamen Juguangli Import & Export Co., Ltd Company News

Today's A-share market closes, the 10% drop of Hesheng Silicon Industry's stock is the A-share limit!   Yesterday, the actual transaction price of silicon blocks also adjusted back 1,000 yuan per ton for the first time! According to SMM reports, Yunnan's silicon companies that stopped production of silicon that caused a surge in silicon metal in the early stage will partially resume production on the 26th, but the follow-up production restriction control policy will be adjusted according to energy consumption monitoring.   Hesheng stated on the investor interaction platform: This year, all areas of the country will be restricted from power and production, and Hesheng’s production plants in various places are currently operating normally and normally accept orders and deliver goods.

Most global commodities fell on September 20, and the VIX index, known as the "panic index," soared. Singapore iron ore futures fell sharply by more than 11%, hitting a new low since May 2020. Since setting a record high in May this year, the price of Singapore's iron ore futures has begun to plunge, and it has fallen about 60% from the high. It has become the commodity with the largest decline recently, and silicon metal has also fallen.   What is metal silicon? Metallic silicon, also known as crystalline silicon or industrial silicon, is mainly used as an additive for non-ferrous alloys. Metallic silicon is a product smelted from quartz and coke in an electric furnace. The main component of silicon is about 98% (in recent years, 99.99% of Si is also contained in metallic silicon). The remaining impurities are iron and aluminum. , Calcium, etc. The main component silicon content is usually above 98.5%, below 99.99%, and the remaining impurities are iron, aluminum, calcium and so on.   "Metallic silicon" (also called industrial silicon) is a trade name that appeared in the mid-1960s. Its appearance is related to the rise of the semiconductor industry. The international common practice is to divide commercial silicon into metal silicon and semiconductor silicon. Metallic silicon is a product smelted from quartz and coke in an electric furnace. The main component of silicon is about 98% (99.99% of Si is also contained in metallic silicon), and the remaining impurities are iron, aluminum, calcium, etc. . Semiconductor silicon is used to make high-purity metal silicon for semiconductor devices. It is sold in the form of polycrystalline and single crystal, the former is cheap and the latter is expensive. It is divided into a variety of specifications due to its different uses. According to statistics, the world's total consumption of metal silicon for aluminum alloys accounts for about 60% of metal silicon, less than 30% for organic silicon, about 3% for semiconductors, and the rest for iron and steel smelting and precision ceramics.   From a global perspective, the consumption of metallurgical silicon is more than that of chemical silicon. However, with the continuous development of science and technology, the use of chemical silicon in the production of organic silicon and semiconductors has been expanding, and it is widely used in the production of organic silicon. Silicon monomer and polymer silicone oil, silicone rubber, silicone resin building anti-corrosion, waterproofing agent, etc., they have unique properties such as high temperature resistance, electrical insulation, radiation resistance, and waterproofing. Used in electrical, aviation, machinery, chemical, pharmaceutical, national defense, construction and other sectors.                    

On September 13, the US "Chemical Weekly" released the latest "Global Chemical Companies Billion Dollar Club" rankings. The ranking is based on the company's chemical sales in 2020. The threshold for this year's billion-dollar club rankings is 2.8 billion US dollars, of which BASF, Sinopec, and Dow Chemical occupy the top three. German chemical giant BASF continues to hold the top spot, and this company has topped the list 10 times in the past 13 years.   The top ten chemical companies are not much different from 2020. Among them, three Chinese companies enter the top ten on the list, namely Sinopec, Formosa Plastics Group, and China National Chemical Corporation. Among them, Formosa Plastics Group and China National Chemical Corporation rank 4th and No. 4 respectively. 7. Both are up one place from the 2020 ranking.   From the perspective of country distribution, most chemical companies are in the United States, Japan, China, and Germany. The number of companies in the four countries is 28, 16, 13, and 9, respectively. Among the 13 companies shortlisted in China, Hengli Petrochemical and Rongsheng Petrochemical have risen sharply. Among them, Hengli Petrochemical rose to 14 from 27 last year, and Rongsheng Petrochemical rose to 24 from 51 last year.

Hesheng Silicon Industry (603260) announced two expansion plans, with a total of 7.615 billion yuan invested in the construction of industrial silicon and organic silicon projects, all of which are located in the Stone Industrial Park of Shanshan County, Xinjiang. Hesheng Silicon Industry is optimistic about the future demand for silicon raw materials. The company stated that in terms of organic silicon, in the long run, in addition to the continuous growth of demand for organic silicon raw materials in downstream traditional industries, energy-saving and environmental protection industries such as photovoltaics and new energy, construction of ultra-high voltage and ultra-high voltage power grids, smart wearable materials, 3D printing and The development of 5G and other emerging industries has provided new growth points for organic silicon, and the market demand for organic silicon will maintain a rapid growth trend. In terms of industrial silicon, with the rapid growth of photovoltaic installations in the next few years, the new polysilicon production capacity will be gradually released. The construction of the above-mentioned industrial silicon projects will prompt the company to promote the continuous expansion and strengthening of the industrial silicon industry, effectively guaranteeing the rapid future of industrial silicon downstream Increase the demand for stable supply of raw materials, ease the survival pressure of enterprises in downstream industries, and promote the healthy and sustainable development of the industry. Hesheng Silicon's business covers both organic silicon and industrial silicon. It is one of the companies with the most complete business chain and the largest production scale in the domestic silicon-based new materials industry. According to financial reports, as of the first half of the year, the company's industrial silicon production capacity was 730,000 tons/year, and organic silicon monomer production capacity was 930,000 tons/year. It is worth mentioning that Hesheng Silicon currently has business cooperation with Daquan Energy (688303), Xinjiang GCL New Energy Material Technology Co., Ltd. and other silicon companies in Xinjiang. Hesheng Silicon's recent stock price has risen rapidly, with a year-to-date increase of 538.42%. The stock price has doubled in the last month and set a record price of 243 yuan per share on September 3. As of the close on September 8, the stock price closed at 212.48 yuan per share.

According to relevant media news: The industry generally believes that the mismatch between supply and demand is the dominant factor. "From the supply side, in the context of policy tightening, the new production capacity of the main production areas of silicone is limited, resulting in a supply gap." The executive partner of Shanghai Minghuan Asset Management Center said that from the demand side, silicone is in my country has a very wide range of applications, and the consumption growth rate is obvious, which greatly supports the market demand for organic silicon. In the case of relatively insufficient supply, with the gradual increase in the demand for organic silicon, the price of organic silicon DMC is likely to rise but hardly fall.   Silicone is called "industrial monosodium glutamate", and mainly includes more than 8,000 downstream products in four categories: silicone rubber, silicone oil, silicone resin and silane coupling agent. Among them, the demand for silicone rubber and silicone oil accounted for 66% and 22% respectively. The main application area of silicone rubber is real estate and home furnishing, while the key application area of silicone oil is textile and clothing. Since the beginning of this year, as the global economy continues to recover, overseas demand has grown strongly, and downstream orders have increased significantly, which has driven the demand for organic silicon products.     Analyzing the market outlook, this year and the next two years will be a major year for new organic silicon production capacity, and the contradiction between supply and demand will be alleviated. According to Zhao Naidi, the domestic production capacity of organic silicon has reached 3.725 million tons per year. Because of the long production cycle of organosilicon monomers. Generally, it takes 2 to 3 years. Superimposed on the impact of the 2020 epidemic, the production cycle of some new organic silicon monomer production capacity has been delayed. It is expected that the domestic organic silicon monomer production capacity will increase significantly from 2021 to 2022.   At present, major manufacturers such as Hesheng Silicon (603260), Xin'an Stock (600596), Xingfa Group (600141) and Dongyue Silicon (300821), which are listed on China's A-share silicone listed companies, have all deployed and are expected to add 1.05 million tons of new production capacity this year.

Global Silicone Network, September 6th: Canalys estimated in its latest report on the global electric vehicle market that global sales of electric vehicles (including plug-in hybrids) reached 2.6 million in the first half of 2021, an increase from the first half of 2020 160%. Among them, Tesla leads the world with a 15% market share. Volkswagen Group ranked second with a market share of 13%. SAIC-GM-Wuling, a joint venture of SAIC, GM and Wuling, ranks third with a market share of 11%. The BMW Group ranks fourth with a market share of 6%. Stellantis) ranked fifth with a 6% share.

On August 29, Dow announced that it had safely closed its manufacturing operations in Louisiana. The Dow Chemical Plant on the U.S. Gulf Coast has developed a comprehensive and clear hurricane preparedness plan to minimize production interruptions while protecting the safety and health of employees, communities, and the environment.   At present, Hurricane Ida makes landfall near the Port of Fourchon, Louisiana, with a maximum sustained wind speed of 150 mph (241 km/h). It became a category four hurricane on the Saffir-Simpson storm level.It was not reduced to a Category 3 hurricane until the evening of the 29th local time.   The Gulf of Mexico and Louisiana are home to oil and gas exploration companies and petrochemical plants. According to the US Bureau of Security and Environmental Enforcement (BSEE), as of the 29th local time, producers in the region have shut down approximately 96% of their oil and 94% of their natural gas production. There is a high probability that petrochemical plants along the coast will also be affected.   The impact of the hurricane on energy and chemical products has two paths: one is that the supply of crude oil and natural gas at the cost end will be affected, and the chemical industry will be supported by costs, and prices will rise; the other is that the hurricane will further affect the start of petrochemical plants in coastal areas and the supply of chemical products will be affected. Prices have risen.   In addition to Dow, Exxon Mobil, Shell, and BASF also cease production. Huntsman was on the sidelines last Friday, but said he would take preventive measures once the storm intensified.

Global Silicone Network News: International oil prices continued to fall this week. As of the close of this morning, WTI October crude oil futures fell 2.14% to $62.14 per barrel, a cumulative decline of about 8.5% this week. Brent's October crude oil futures fell 1.91% to $65.18 per barrel, a cumulative decline of about 7.3% this week. WTI crude oil futures and Brent crude oil futures both recorded their biggest weekly declines since November 2020.   Analysts believe that the decline in international oil prices reflects on the one hand the weakening of the market’s expectations for economic recovery under the background of the continued spread of the Delta Covid-19 pandemic, and the strong U.S. dollar. Investors are avoiding risky assets. On the other hand, the Fed has hinted that it will be The start of reducing asset purchases within the month also suppressed oil prices.

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.

The main component of ordinary silicone is silicon dioxide, which is also called silicic acid gel.   Medical silicone is also called silicone rubber. Silicone rubber is one of synthetic rubbers. Its chemical name is polymethylvinylsiloxane. It is composed of dimethylsiloxane monomers and other organosilicon monomers in acid or alkaline catalysts. Under the action of polymerization.   Medical silicone is a biological material that is widely used in cosmetic surgery. It has many forms, such as: liquid silicone oil, jelly-like silicone, foamed silicone sponge, and elastic solid silicone rubber. At present, solid silicone rubber is mostly used. Silicone rubber has good biocompatibility, no irritation to human tissues, no toxicity, no allergic reactions, and minimal rejection of the body; it has good physical and chemical properties and can maintain its original properties during contact with body fluids and tissues. Elasticity and softness, will not be degraded, is a fairly stable inert material. It can withstand high temperature and can be sterilized. It is easy to process and shape, easy to process and engrave shape, and easy to use.