The hottest silicone industry faces a cold spell a

2022-08-26
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The silicone industry is facing a cold wave and reshuffle.

since this year, silicone enterprises across the country have encountered a cold wave that has never been seen before, resulting in difficulties in production and operation at home and abroad, and a deteriorating living environment. Industry analysts pointed out that the main reason was the oversupply of industrial capacity, weak demand, and the low price strategy adopted by international competitors to suppress Chinese counterparts. This is what I learned when I attended the economic situation analysis meeting of the petroleum and chemical industry in Zhejiang Province last weekend

according to the industry, at present, the price of domestic silicone monomer has been at a historical low, most production enterprises have fallen into losses, and the number of enterprises that stop production and reduce production has increased significantly. Zhejiang Xin'an Chemical Industry Group Co., Ltd. is an enterprise with the highest production scale and technical level of silicone in the country. According to the relevant person in charge of the company, the apparent consumption of silicone in China this year is equivalent to about 550000 tons of siloxane, an increase of less than 10% over last year, which is the lowest growth rate in the past five years. On the other hand, there are 16 domestic silicone monomer enterprises, with an annual monomer production capacity of about 1.9 million tons, equivalent to more than 850000 tons of siloxane. It can be seen that the capacity of the domestic silicone market is far greater than the demand, and this situation is expected to be difficult to change in the short term

internationally, the current annual production capacity of silicone monomers in the world is about 1.95 million tons, and the market demand is about 1.4 million tons, which is also oversupply. Especially since October, affected by the European debt crisis and the national economic policy to curb inflation, the weak demand in the silicone market has further intensified, resulting in a sales revenue of 15billion yuan, and the price of silicone monomers has fallen all the way. At present, domestic silicone monomer manufacturers are basically unprofitable

in addition, recently, due to the slowdown of downstream demand, especially since the 400000 ton/year silicone monomer project jointly invested by international silicone giants Dow Corning and wacker in Zhangjiagang last year was put into operation, it has given play to its advantages of scale, technology and low cost of localized production, and implemented the low-cost sales strategy in the domestic market, which has caused a great impact on the market, and the pressure of industry integration has further increased, The competition in the industry tends to be white hot

compared with most domestic peers, for more information about the latest conference this year, please contact: Although Xin'an chemical industry has comparative advantages in production cost and scale, facing such a depressed market, it is forced to accelerate the adjustment of product structure and extend the silicone industry chain to downstream products with higher added value, such as high-temperature adhesive, room temperature adhesive, silicone oil and other industries through technological innovation

enterprises in the industry generally believe that Dow Corning obviously controls the voice of the domestic silicone market. If the company continues to adhere to the strategy of price reduction competition under the same processing conditions, the price of main silicone products will be difficult to get out of the weakness, and the industry will face a new round of reshuffle. Therefore, the participating enterprises proposed that the national silicone manufacturers should only unite to actively discuss countermeasures. At the same time, Zhang Yi, the founder of the bamboo fiber industry network and the leader of China's bamboo fiber industrialization, said that he called on the industry management departments to attach great importance to it and take effective measures to help the industry tide over the difficulties, otherwise the prospect of China's silicone industry will be bleak

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