Why the silicone raw material ‘s price is going through the roof？
2021-10-13
September 2021 is an important time when the silicone industry can be recorded in history.
The silicone spot market price has shown a wave of climax trend Recently. In the past month, the cumulative increase has reached more than 70%.
DMC materials: a sharp rise of 13000 yuan/ton a day, from 37500 yuan/ton at the beginning of the month to 40000 yuan/ton, 50000 yuan/ton and 60000 yuan / ton. It took only two weeks, and the industrial chain storm came unexpectedly.
From Global Silicone website news on October 12: the domestic silicon raw material manufacturers giants collectively raised the price of silicone raw material today,
with an external quotation of 84600 yuan / ton. The silicone industry said that the concentration of domestic silicon material production is too high, and it is expected to impact 100000 + / ton in the future.
What is the reason for the rise of silicone raw materials in 2021?
1, The global epidemic continues to spread, resulting in shutdowns in many production-oriented countries, port congestion,
rising international logistics costs, and a serious impact on the global silicone industry chain,
2 The price rise of energy materials: oil, natural gas and coal have triggered a certain energy crisis.
3 Since the outbreak of the epidemic, the major central banks around the world have opened monetary drainage to varying degrees.
Excessive monetary development will bring inflation. Under global economic integration, this international transmission has exacerbated the rise of raw material prices.
4 With the spread of global inflation, the whole silica gel material market has also set off a rush to buy raw rubber since 2021 / July.
As more and more manufacturers join in hoarding raw rubber and compound rubber, the prices of raw rubber and compound rubber have been soaring.
5 Under the multiple influence of China's energy "dual control" policy and power restriction policy, the supply of metallic silicon is reduced,
while the demand for polysilicon and silicone materials is growing, driving the price of raw materials to record highs.
6 This year, the expansion of Chinese rubber compound manufacturers was blocked, and many new units were shut down,
which had some reasons for the rise of silica gel materials.
7. The sharp increase in seasonal demand and the continuous rise in global raw rubber prices led to panic buying by many buyers,
pushing up the raw rubber prices.
Raw rubber soared from about 22000 at the beginning of the year to 65000 now, up 196%, the largest increase in 12 years.
In fact, the industrial chain storm is spreading to other parts of the world. Against this background, the price of silicone also shows an obvious acceleration trend.
The price evaluation may have been divorced from the supply and demand level.
There are discussions in the industry on the topic of "whether the price rise tide will continue to 2022", and there is no conclusion at present.
It can be predicted that the price rise tide will still be the focus of the whole industry in the future.
