Organic silicon traditional peak season is coming, upstream and downstream enterprises are bullish

According to the monitoring of Baichuan Information, since the middle of February, the prices of DMC, raw rubber, 107 rubber and other basic products have bottomed out and risen, driven by the low inventory of enterprises in the domestic silicone market and the good status of downstream orders. The DMC price rose by 1.09% on February 19 after rising by 1.67% on February 18. The price in the East China market has reached 18500 yuan/ton; The market price of raw rubber in East China was 19500 yuan/ton, 500 yuan higher than that on the 18th; 107 The market price of rubber in East China was 18800 yuan/ton, up 300 yuan from the 18th.
Huixin believes that due to the recent widespread overhaul of manufacturers and the significant decline in the operating rate during the Spring Festival, the supply of silicone in the market has decreased, and the enterprise's inventory level is at a low level. The downstream procurement has a strong mentality of taking goods. With the arrival of the peak season in March, the downstream procurement demand will be further released. In addition, the recent Sino US negotiations have made some progress, and the easing of trade negotiations is conducive to the improvement of the export situation.
Huixin analysts expect that, driven by the improvement of upstream and downstream, organic silicon is expected to usher in a staged rise, and the profitability of industry companies is expected to improve.
Relevant concept units:
Xin'an Shares (600596): The company is the second largest silicone monomer manufacturer in China, with an equity capacity of 290000 tons/year for silicone monomer, and will expand 50000 tons by the end of the 19th year; The company has formed four series of products including silicone rubber, silicone oil, silicone resin and silane coupling agent, and has become an organic silicon enterprise with full industrial chain advantages; In 2017, the sales volume of organic silicon (converted into DMC) was 55100 tons, with a revenue of 6.121 billion yuan, accounting for 86.18%.
Sanyou Chemical (600409): The company has an annual production capacity of 3.4 million tons of soda ash and 500000 tons of viscose staple fiber, and has become a double leading enterprise of soda ash and viscose staple fiber. The annual production capacity of silicone monomer is 200000 tons, which is the largest silicone production base in North China.
Hesheng Silicon Industry (603,260): the industrial silicon capacity of the company ranks first in China, and the organic silicon ranks the top three; The company is engaged in the research and development of industrial silicon, organic silicon and other silicon based new material products, and is one of the enterprises with the most complete business chain and the largest production scale in China's silicon based new material industry; The Company's industrial silicon capacity is 350000 tons/year, the capacity of Shanshan's projects under construction is 400000 tons/year, the capacity of organic silicon is 335000 tons/year, and the capacity of projects under construction and raised investment is 200000 tons/year.