The price of silicone continued to rise, and most of the sole manufacturers continued to close their orders. The market prices were different, and the ability to receive orders was insufficient. Downstream manufacturers have reduced or stopped productions due to the shortage of raw materials. It is expected that the relationship between supply and demand in the silicone market will remain tense in the future.
Raw material product details 2020-11-23
DMC: The price of DMC continued to rise, the market supply was tight, and the demand was increasing. Single manufacturers executed pre-orders, and some manufacturers placed orders until the first quarter of next year.
Polyvinyl formal adhesive for construction 107: The price of Polyvinyl formal adhesive for construction 107 is scattered, and the price rises, with tight supply. As the temperature drops, the demand for silicone glue may decrease in the later period.
Crude rubber: The price of crude rubber continues to rise, the market supply is tight, and downstream manufacturers are struggling to find goods or facing production cuts.
Compounded rubber: The price of compounded rubber continues to rise. With the cost pressure of upstream and strong demand from the downstream the price of the compounded rubber runs high in a short period of time.
Silicone oil: The price of silicone oil continues to rise, and the textile industry around the world has ushered in a peak season. The increase in demand has pushed up the price of silicone oil and there is a fear of high in downstream.
Silicon metal: The price of metal silicon remained stable. The price of 421# silicon metal in the Port of Huangpu is about 12900-13000 RMB/ton.
Methanol: The methanol market continued its upward trend with active downstream purchases and stable shipments.
Methyl chloride: The price of methyl chloride dropped, and the market quotation this weekend was around 3300 RMB/ton.
A fire broke out in Hesheng Silicon Industry, and the price is skyrocketed! DMC rose by 4000 RMB 2021-11-6
A fire broke out in Hesheng Silicon Industry, and the price is skyrocketed! DMC rose by 4000 RMB
On June 8, 2021, the largest organosilicon factory in China exploded, and a fire accident occurred in the second-phase trial production line of the finished product packaging workshop of Hesheng Silicon Industry affecting 200,000-ton sealant project. In June 10, the organosilicon market Luxi DMC broke through the 30,000 RMB mark in the opening price, and soared to 30,800 RMB/ton within half an hour, and increased by 4,000 RMB/ton within two days. Closed and skyrocketed, silicone has a high price without any stock.
At present, the rest of the remaining sloe factories still say that they will continue closure and remain on the sidelines. People in the middle and downstream markets are panicking. In addition to sharply rising quotations of DMC day by day, and panic is spreading in the market. Midstream and downstream manufacturers are looking for sources of goods. Sitting and staring while facing the uncertainty of offers in the DMC market, most of the polyvinyl formal adhesive for construction 107 and silicone oil manufacturers can only follow the footprint of the market as to closing their market price.
From the perspective of demand: the downstream has always been afraid of the high price that results in a low inventory as they only prepare for the demand in the early stage. Now, seeing the skyrocketing and inability to purchase goods, the entire market has become very impatient, and downstream silicone rubber manufacturers are constantly seeking stock, queuing up, and waiting for the upstream market to receive orders. In this state of high cost and small inventory, in order to protect their own interests, downstream silicone rubber manufacturers can only continue to issue notification letters, discuss one by one, and suspend orders. On the whole, we are in a situation of demand exceed supple, and the demand is in a panic and has to inquire about the goods and place orders, which further increases the imbalance between supply and demand. In the short term, it is expected that silicone oil and polyvinyl formal adhesive for construction 107 manufacturers will continue to provide limited supply, and the market gap will be difficult to meet. However, the price of silicone has reached a high level, and some downstream users are already unable to bear it. The room for continued increase and the degree of impact on the load of the sole factory should be carefully paid attention to.
On June 8, 2021, the largest organosilicon factory in China exploded.
Yunnan industrial silicon production has decreased by 90% since August, and the price has soared nearly three times 2021-9-30
In response to the “double control of energy consumption” policy implemented by the authorities in China, the Yunnan government has ordered silicon manufacturers to cut production by 90%, causing the price of industrial silicon raw materials to jump nearly 300% since August this year.
Silicon prices soared 300%! China’s power curtailment shortage becomes more severe 2021-10-04
The second most abundant element in the earth’s crust, silicon, has become rare, with shortage of silicon due to power cuts and production cuts China, which caused prices of silicon soaring 300% in two months. Bloomberg reported that the global energy crisis has affected the world economy, from natural gas to electricity shortages, which further affect various fields such as silicon, fuel oil, and fertilizers, and silicon shortages have seriously affected many downstream industries such as solar energy and automobile manufacturing.
Silicon prices soar, which foster the rise in raw materials 2021-10-02
Power cuts in China have led to a shortage of metal silicon supply, and the price of metal silicon has risen sharply, threatening the supply of auto parts, computer chips and other products, which will contribute to the rise in global raw material prices, causing the world to experience a “price shock” again and adding new obstacles on the road to recovery of the economy.
The production cut in China has led to insufficient supply of metal silicon, and the price has soared by 300% in less than two months. Following the old worries of bottlenecks in global supply chain and tight power supply, it has added new worries to enterprises and consumers.
The shortage of metal silicon underscores the multiple ways in which the global energy crisis is affecting the economy. Silicon is widely used in the production of a wide variety of products, including computer chips, cement, glass, auto parts, and so on. It is also used in solar panels to help convert sunlight into electricity; silicone, made from silicon, is more commonly used in medical implants, caulk, deodorant, microwave oven gloves, and so on.
The shutdown tide is coming again! Many provinces and cities in China start their emergency response 2021-11-19
The enterprises that had previously suspended production due to “dual control” and “limited power” have not fully resumed production. Recently, due to environmental protection factors, Xiamen’s polyester plant has ushered in a “wave of production shutdown”!
- Due to environmental protection requirements, two sets of polyester plants with a capacity of 380,000 tons of a factory in Xiamen were temporarily shut down, effecting the products of polyester filament, polyester staple fiber and chips. The time of restoring is to be determined.
- Due to environmental protection factors, on the afternoon of the 16th, the PET bottle flake device with an annual output of 240,000 tons in East China facotry will be shut down for maintenance, and the time if restarting is to be determined.
- Xiamen Xianglu polyester filament plant temporarily stopped on the 16th, effecting a total production capacity of 140,000 tons of polyester filament per year.
Not only in East China, but Henan, Anhui, Hebei, Liaoning, Shandong, Shanxi and Sichuan have recently issued warnings of heavily polluted weather, requiring companies to reduce emissions, shift peak or stop/reduce production.
What is the reason for the soaring price of silicone raw materials in 2021? 2021-11-21
Recently, many “price adjustment letters” from suppliers of silicone raw materials were received, and the prices of raw materials have not been actively lowered. Once there is a turbulent situation, the prices will all rise. What is the reason for the continuous increase in the prices of silicone raw materials?
The global epidemic is improving, the economy is gradually recovering, and industries in Europe and the United States are beginning to gradually normalize their production. Nowadays, many companies of raw materials are gradually optimistic about the future market. After nearly a year of dormancy, industrial development will also increase in revenge, and the prices of various materials also have an upward trend.
Since the production cost of silicone in factories outside China is higher than that in Chinese factories, and it is a hazardous chemical, the production volume of silicone raw materials in countries other than China has been greatly reduced. The soaring price of silicone rubber raw materials is mainly due to the sharp rise in the prices of crude rubber and DMC, while crude rubber is the main raw material for the production of silicone rubber with DMC as its main raw material. Once the price of DMC rises, it will lead to an increase in the overall price of the silicone industry. Due to the recent sharp rise in the price of DMC materials, the price of crude rubber and silicone rubber has been directly affected.
Why did the price of silicone rubber start to rise wildly in the second half of this year?
This situation is mainly related to the epidemic. In the first half of the year, due to the outbreak of epidemics, foreign trade exports fell sharply, resulting in a sluggish market economy, so the price fluctuations of silicone raw materials were small. Since the second half of the year, Chinese companies have resumed work and production for a period of time, and production has basically returned to normal levels. Coupled with the second outbreak of the epidemic abroad, many foreign orders have been transferred to domestic factories for production. In particular, the entire price of the chemical industry has risen across the board recently, and DMC materials have also been directly affected. More specifically, a silicone factory was shut down due to a fire accident, causing silicone prices to jump. On November 15, the price of East China silicone DMC has reached 24,000 RMB per ton. In the short term, due to the contradiction between supply and demand, the price may still rise.
As an important organic compound, DMC materials not only have important applications in the silicone industry, and also with the non-toxic feature of DMC, it can be used as a methylating agent or carbonylating agent instead of highly toxic phosgene, methyl chloroformate, dimethyl sulfate, and so on, which improves the safety of production operations and reduces environmental pollution. As a solvent, DMC can replace freon, trichloroethane, trichloroethylene, benzene, xylene, etc. for paint coatings, cleaning solvents, and so on. As a gasoline additive, DMC can increase its octane number and oxygen content, thereby improving its antiknock. In addition, DMC can also be used as an additive for detergents, surfactants and softeners. Due to its wide range of usages, DMC has been hailed as the “new cornerstone” of the organic synthesis nowadays.
Since DMC materials are widely used in all walks of life, once the demand of other industries increases, the supply of DMC materials will be in short supply and the price will rise. In addition, the market demand was not strong in the first half of this year, and the price of materials basically tended to be low-cost. DMC manufacturers and crude rubber manufacturers have a mentality of speculation. With the help of strong market demand and the second outbreak of epidemics, this has contributed to the recent Silicone raw materials skyrocketed.
In such a large system of world industry, developed countries are mainly centralized in the West, relying mainly on capital, and of course they are also the consumer countries. China is a producing country, and the producing country imports various raw materials. The rise in raw materials will inevitably increase production costs, thereby compressing the operating profits of producing countries. Although they are processed into various commodities and sold to consuming countries, the Western countries have already benefit from China. And they don’t have to be accountable to their own consumers.
In order to alleviate the epidemic crisis, printing money frantically. In 2020, the United States printed 3.2 trillion US dollars, Japan printed 5 trillion US dollars, and the total amount of money printing in the world’s eight major economies were close to 100 trillion RMB. Due to the large amount of money released by the central banks of various countries, global liquidity is flooded, and rising tides are inevitable. Almost everything will rise in price, and raw materials have no exception. This is the power of Western countries to export inflation. After such a toss, it is still the enterprises in the producing countries to pay the bills. The silicone factories said, “If you knew that the price would increase, you should order more!”.
In 2021, with the launch of the global Covid-19 vaccine, it is also hoped that the macroeconomic situation all over the world will recover, and it is hoped that the price of silicone raw materials will gradually fall in the second half of the year.
DMC, crude rubber, Polyvinyl formal adhesive for construction 107, and silicone oil price increase and out of stock.
At present, most of the downstream has officially started the production, the demand for silicone raw materials has increased, and the price has been rising slightly after the holiday. However, after a short-term closure, the quotations of leading companies were significantly increased yesterday, and the price of silicone oil reached 39,000 RMB per ton.
The recent price increase is mainly due to the shortage of the spot market. At present, the new production capacity has not been officially put into the market, and it is expected that product output will be launched in March. But even if there is no new production capacity, other production capacity has been in good production in the near future, and the supply is guaranteed. The reason for the sudden shortage of stock is more confusing. At present, the increasing demand for downstream resumption of work and production, and the recent increase in exports are the reasons for the shortage of silicone raw materials.
The rise in upstream raw materials of silicone raw materials has led to the price increase of downstream products. At present, some downstream manufacturers have begun to issue price increase letters, with an increase of 10%-15%. Metal silicon continued to rise slightly. According to the analysis of the silicone raw material market, the increase in supply is less than expected and smaller than the increase in demand. The overall supply and demand are basically matched or slightly insufficient. Both the silicon material and silicon wafers maintain a basically normal circulation of inventory, and there is still room for replenishment of inventory. In addition, the installations in China have started one after another, and the preliminary procurement has been gradually followed up. It is expected that the price of silicon materials will continue to remain stable and slightly increase in the short term.
DMC broke 33000 RMB, the price of silicone oil and metal silicon both increased, and the price increase letter was flying everywhere, with an increase of 10%-15%.
The recent continuous increase in prices is mainly affected by a number of factors: the progress of new production capacity is less than expected; the demand for downstream resumption of production has increased; foreign market demand has led to an increase in exports, and the spot market is in short supply; the hype atmosphere is heavier and so on.
In the first half of this year, 900,000 tons of sole production capacity has been built to be put into production, but it is currently in the commissioning stage, and the progress of production is not as good as expected. It is expected to be put into the market in the second quarter.
As for the downstream demand, the large downstream real estate industry of organic silicon will start the production after the holiday, which increases the demand for room temperature rubber, picks up the demand for the market of silicone rubber products. It is difficult to find one single Bing Dwen Dwen in the market. The demand for high temperature rubber increases greatly, and the overall downstream demand will exceed expectations, leading to the tight supply of raw materials in the market.
Rising continuously, rising every day. The prices of silicon rubber, metal silicon, DMC, and polyvinyl formal adhesive for construction 107 continues to rise, and the country once again issued a document to ensure the supply and stable prices.
Recently, the rising tide of commodity prices has resumed. In China’s domestic industrial products, the prices of iron ore, glass and other commodities have risen sharply by more than 20%. In terms of agricultural products, the prices of palm oil, soybeans, rapeseed meal, etc. have risen by more than 10%. The rare earth price index have risen to 426.8 on the 15th, which is up 24.78% from the beginning of this year that sets a new high in a decade; internationally, it is represented by crude oil prices approaching US$100, which has attracted much attention.
Similar to the beginning of last year, the price of organic silicon also continued to rise in the same period last year. However, recently, the departments of Chinese government have begun to issue documents to stabilize the supply and ensure prices. The “Several Policies for Promoting the Steady Growth of the Industrial Economy” issued by 12 departments including the National Development and Reform Commission was released to the public. In terms of ensuring supply and stabilizing prices, the “Several Policies” propose to ensure stable supply and price of important raw materials and primary products such as iron ore and fertilizers, hoping to play a stabilizing role in the market.