Silicone raw material prices suddenly skyrocketing, silicone manufacturers how to respond?

2020/11/20 17:16:36

The price of silicone raw material has soared in the past month, and now it has risen by more than 50%, and the price has broken through the 20,000 yuan threshold. It seems that the trend will continue. In theory, this year's severe epidemic, silica gel products industry has been impacted, so the demand for silica gel products should be less than in previous years, but why the price of silica gel raw materials has been "soaring"?

Why did prices fluctuate little in the first half of the year, but start to rise wildly in the second? This situation is mainly related to the outbreak of foreign epidemic. In the first half of the year, due to the outbreak of foreign epidemic, the export of foreign trade dropped significantly, leading to the recession of the market economy, so the price of silica gel raw materials fluctuated less. Since the beginning of the second half of the year, Chinese enterprises have resumed work and production for some time, and output has basically returned to the normal level. Coupled with the second outbreak of the epidemic abroad, many foreign orders have been diverted to domestic factories for production. Especially in the recent chemical industry across the board price rises, which DMC materials have also been directly affected.

The surge in the prices of silicone rubber raw materials is mainly due to the sharp increase in the prices of raw rubber and DMC, which is the main raw material for the production of silicone rubber. Once the DMC price goes up, it will cause the overall price of our silicon industry to go up. Due to the recent sharp rise in the price of DMC materials, it directly affects the price of raw rubber and silica gel.

As an important organic synthetic material, DMC material not only has important applications in silicone rubber industry. DMC is non-toxic and can replace phosphorescent gas, methyl chloroformate and dimethyl sulfate as methanol or sulfuryl compounds to improve the safety of production and operation and reduce environmental pollution. DMC can replace freon, trichloroethane, trichloroethylene, benzene, xylene and other solvents for painting and cleaning. DMC can increase octane number and oxygen content of gasoline, so as to improve the anti-explosion performance of gasoline. In addition, DMC can also be used as an additive for cleaning, surfactant and softener. DMC is known as the "new cornerstone" of organic synthesis because of its wide application.

Because DMC materials are widely used in various industries, any increase in demand for DMC materials in other industries will lead to a shortage of DMC materials and lead to higher prices. In addition, in the first half of this year, the market demand is not flourishing, raw material prices tend to operate at low cost, AND DMC manufacturers and raw rubber manufacturers have a mentality of high speculation, with the help of strong market demand and the second outbreak of foreign epidemic, leading to the recent surge of silicone raw materials.

Because silicone raw materials prices rise and fall with some regularity, if is rising sharply, will keep a period of rising trend again fell back quickly, so expect November to December, the silicone raw material prices will keep rising trend, the downstream silicone products factory should adjust the price according to your own production cost in time, otherwise it will damage due to silicone raw materials recent rise.

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