According to relevant media news: The industry generally believes that the mismatch between supply and demand is the dominant factor. "From the supply side, in the context of policy tightening, the new production capacity of the main production areas of silicone is limited, resulting in a supply gap." The executive partner of Shanghai Minghuan Asset Management Center said that from the demand side, silicone is in my country has a very wide range of applications, and the consumption growth rate is obvious, which greatly supports the market demand for organic silicon. In the case of relatively insufficient supply, with the gradual increase in the demand for organic silicon, the price of organic silicon DMC is likely to rise but hardly fall.
Silicone is called "industrial monosodium glutamate", and mainly includes more than 8,000 downstream products in four categories: silicone rubber, silicone oil, silicone resin and silane coupling agent. Among them, the demand for silicone rubber and silicone oil accounted for 66% and 22% respectively. The main application area of silicone rubber is real estate and home furnishing, while the key application area of silicone oil is textile and clothing. Since the beginning of this year, as the global economy continues to recover, overseas demand has grown strongly, and downstream orders have increased significantly, which has driven the demand for organic silicon products.
Analyzing the market outlook, this year and the next two years will be a major year for new organic silicon production capacity, and the contradiction between supply and demand will be alleviated. According to Zhao Naidi, the domestic production capacity of organic silicon has reached 3.725 million tons per year. Because of the long production cycle of organosilicon monomers. Generally, it takes 2 to 3 years. Superimposed on the impact of the 2020 epidemic, the production cycle of some new organic silicon monomer production capacity has been delayed. It is expected that the domestic organic silicon monomer production capacity will increase significantly from 2021 to 2022.
At present, major manufacturers such as Hesheng Silicon (603260), Xin'an Stock (600596), Xingfa Group (600141) and Dongyue Silicon (300821), which are listed on China's A-share silicone listed companies, have all deployed and are expected to add 1.05 million tons of new production capacity this year.
