Methyl silicone oil is still the main variety of silicone oil at present

China’s silicone oil products are mainly concentrated in the middle and low end, with methyl silicone oil and hydrogen-containing silicone oil as the main products, which are mainly produced in accordance with domestic monomer production capacity. Among them, the production capacity of methyl silicone oil accounts for around 56%, and hydrogen-containing silicone oil and vinyl silicone oil. The production capacity accounts for about 15% respectively. Methyl silicone oil is the most typical and common silicone oil product. The domestic product name is 201 series; the main model of Dow in the United States is PMX-200 series; the brand name of Wacker in Germany is AK series; the brand name of Shin-Etsu Japan is KF series.

In 2021, the domestic simethicone price experienced a narrow range to a period of rapid rise. During the year, the major downstream textile, daily chemical and silicone rubber industries performed generally. Dimethicone lacked strong support downstream, and the price of silicone oil mainly fluctuated with changes in raw material prices. However, in the second half of the year, under the support of tight supply and demand, the decline of silicone oil has slowed down. At the same time, the price difference with the raw material DMC has gradually widened. Compared with the parallel product silicone rubber (14405, 160.00, 1.12%), its profit level is higher As of mid-December, the domestic methyl silicone oil price has dropped to 32,000-33,000 yuan/ton, and the price difference with domestic DMC has reached the level of 7,000-8,000. Normally, the price difference between the two is mostly 2,000-3,000 yuan/ton.


The reasons for this situation are analyzed by Zhuo Chuang Information. On the one hand, under the influence of the epidemic in 2021, the operating stability of foreign monomer and silicone oil production facilities has declined, and the shutdown and negative load time have increased compared with previous years. The production of foreign brand silicone oil has declined, and the global The decrease in supply circulation and the flow of some international orders to the domestic market support the optimism of silicone oil export orders, and foreign customers have a better acceptance of high-priced silicone oil in the domestic market. On the other hand, due to the high purchase price of metal silicon raw materials, foreign silicone oil manufacturers have kept their silicone oil costs high, and the price reduction did not follow the domestic silicone oil prices. At present, the bulk cargo operation range of domestic agents is 45000-50000 yuan/ton. It also supports the high price of domestic silicone oil.


Long and short are intertwined, and methyl silicone oil is mainly used to make up for short-term losses


The current silicone oil market is both positive and negative. The price of raw material DMC is close to the cost line, and some companies have already fallen into a loss. It is expected that the short-term DMC price will have limited room for a sharp drop, and the cost of silicone oil is expected to stop falling. On the whole, it is expected that the short-term silicone oil price will continue to show a complementary downward trend, and it is expected that the price will gradually return to the range of the normal price difference with DMC.