At the beginning of the new year, China's domestic silicone market ushered in recovery again. Relevant reporters learned from a number of organosilicon production enterprises that most of them currently have sufficient orders on hand, and some companies have extended their orders to after the Spring Festival, and the production lines have also maintained a high operating rate to cope with the rising market demand.
Organosilicon, that is, organosilicon compounds, including all kinds of small molecule compounds and polymers. Its downstream products generally include silicone rubber, silicone oil, silicone resin three categories of products, widely used in construction, power, electronics, automotive, textile and other fields, the construction field is the most important terminal application of silicone, accounting for more than 30%.
Since this year, the market price of silicone products began to come out of the slump, according to relevant information statistics, the current price of silicone DMC products is about 30,000 yuan per ton, up 12.74%.
The increase in downstream demand is the main reason for the increase in the price of silicone, and at the same time, the surge in overseas demand has also driven the market price of silicone. Some relevant business people said that the current price of organic silicon in overseas markets is still at a high level, which is nearly RMB10,000 per ton higher than the price in China's domestic market. Many foreign downstream companies have begun to increase purchases from Chinese silicone manufacturers, resulting in a further tightening of domestic silicone supply and demand.
The ups and downs of the silicone market last year caught the upstream and downstream enterprises of the industrial chain off guard, and the relevant enterprises will avoid a similar situation again. It is expected that the silicone market will operate relatively steadily in the future, and the profit space of the silicone production enterprises will recover somewhat, but it is difficult to reach the level of the third quarter of last year.
