Silicone prices continue to rise, related companies increase their layout

Silicone prices have continued to strengthen recently. According to data released by the consulting agency Baichuan Yingfu, the price of silicone DMC (Dimethylcyclosiloxane Mixture) on September 27 was 60,000 yuan/ton, an increase of more than 60% within the month. The prices of upstream and downstream products in the industrial chain, such as metallic silicon and simethicone, are also running at a high level.


Shenang Securities stated that the price of DMC-based silicone products continues to hit new highs. From the supply side, the global production capacity of organic silicon is gradually shifting to Asia, and domestic technologically backward companies have stopped production and restricted production. The new production capacity mainly comes from the expansion of leading companies, and the industry concentration has increased significantly.


From the point of view of the downstream products of organic silicon, products such as silicone rubber and silicone oil are widely used in construction, electronic appliances, textiles and clothing, energy and other fields. In addition, due to the excellent high temperature resistance, compression resistance, radiation resistance and electrical conductivity of organic silicon materials, they are gradually being used in emerging fields such as 5G, new energy vehicles, photovoltaics, and chip semiconductors.