Monday, December 20, 2010

Silicone continuing price coating additives improved corporate earnings

Since the end of August, silicone products prices upward, domestic organic silicon manufacturers were all full production and profitability. Industry insiders said the silicone price in line with expectations, the current price relatively reasonable. Organic silicon prices mainly by real estate industry pull, its future price trends of concern.

Shenyin wanguo provides the latest data show that at the end of August to early September, the main product of silicone continuing price adjustment, DMC is basically a week by a times increase range 500-1000 Yuan. 12 September, DMC price reached 2.35 Yuan/ton. But in early August of Xin'an co. public information displays, silicone DMC price 1.9 Yuan/ton. Affected by financial crisis, silicone DMC at the end of 2008 fall 1.7 Yuan/ton.

The first half of this year, due to depressed prices for organic silicon, with the exception of wynca co., other similar enterprises most silicone production in the Red States. Wynca co. with silicone-glyphosate "chloride cycle" special craft, its organic silicon gross profit significantly higher than Bluestar new material and other listed companies.

According to estimates, now shenyin wanguo silicone DMC price up to 2.35 $/ton, manufacturing cost point 1.4 Yuan/ton, other costs including packaging, sales tax, shipping charges, management fees and finance charges, etc. After deduction of the cost that most manufacturers of silicone has made profits.

Bluestar new material dongmi also told reporters that the recent organic silicon prices, the company's profitability is continuing to improve. According to one recent Bluestar new material Jiangxi xinghuo silicone factory investigating industry researcher, blue spark June has ended for 8 months of losses, for the month of July, the sales volume of organic silicon all-time record high.

Guosen securities industry Chief Analyst Qiu Wei told reporters that organic silicon prices in expected, and this expectation has been listed on the stock price ahead of time to reflect on. Organic silicon prices mainly affected by lower real estate sectors pulling. Silicone products as performance of sealant, waterproofing agent, in the real estate field are widely used, and the real estate consumer related organic silicon demand accounted for 40% of total demand.

As far as I know, there are currently engaged in the production of silicone mainly three listed companies, including Sun co., Bluestar new material and macro daxincai. Of these, wynca shares outstanding technology, cost advantages, its resource recycling and to build a powerful competitive barriers. Bluestar new materials into silicone industry earlier, silicone production is currently ranked the first. The company is using advanced technology to Rhodia downstream value-added chain link extension.

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