Home    Company News    Silicone prices continue to rise, and the concentration of production capacity continues to increase

Silicone prices continue to rise, and the concentration of production capacity continues to increase

Hits: 972 img

According to the monitoring data of the business agency, as of February 28, the average price of the organic silicon DMC market in the mainstream areas of the data monitoring is 22766 yuan/ton, which is compared with the price on February 1, 2021 (reference price 21,100 yuan/ton). The average price was raised by RMB 1,650/ton, an increase of 7.90%. Analysts believe that as early as the end of January, the domestic silicone DMC market has begun to explore, giving favorable support to the continued upward trend of the silicone DMC market in February.

In recent years, with the gradual maturity of emerging industries such as green tires, new energy vehicles, rail transit, composite flexible packaging, consumer electronics, outdoor advertising, solar energy, lithium batteries, LED lamps, 5G networks, and the continuous expansion of technology research and development and applications, functions The demand for silanes and specialty silanes is growing rapidly.

According to statistics, the actual domestic production of functional silanes in 2019 was about 270,100 tons (excluding intermediates), and the trend of production capacity concentrated in large enterprises is obvious. The National Silicon Industry Green Development Strategic Alliance predicts that from 2018 to 2023, the average annual growth rate of my country's functional silane consumption is about 10.2%.

With the hot market, leading companies in the industry chain are actively expanding production. On the evening of March 1, Chengdu Sibao Technology Co., Ltd. issued an announcement that as of February 24, 2021, Sibao Technology has issued additional 60,258,249 RMB ordinary shares (A shares), with a total raised capital of 840 million yuan. In place.

It is reported that the funds raised by Sibao Technology will be used for 100,000 tons/year high-end sealant intelligent manufacturing projects, national enterprise technology center reconstruction projects and supplementary working capital projects. Sibao Technology currently has 5 major production bases across the country, covering an area of 600 acres, with an existing production capacity of 100,000 tons per year. The company's business scale has grown rapidly, and its capacity utilization has become saturated. The production capacity of this fundraising project will reach 200,000 tons/year, which will help relieve pressure on production capacity, promote the expansion of the company’s business scale, optimize the company’s product structure, and increase the company’s profitability; at the same time, the company will expand the existing The National Enterprise Technology Center will improve R&D conditions, further enhance R&D strength, lead the innovation and development of the industry, and build a world-class national enterprise technology center.

According to the company's 2020 annual performance forecast, the company's annual net profit increased by 45%-65% over the same period of the previous year; product sales are expected to exceed 95,000 tons, an increase of more than 50% year-on-year; operating income exceeds 1.5 billion yuan, an increase of about 50% year-on-year . The company's sales of construction adhesives and industrial adhesives have gone hand in hand, achieving double growth in sales performance, accelerated import substitution in multiple segments, and strong market demand.

Experts said that China is the world's largest producer and consumer of organic silicon. With the development of high-end manufacturing and import substitution, especially the development trend of intelligent society brought by new infrastructure and 5G, it will inevitably bring about new materials and consumption structures. As a result of changes, functional silane, as a key material for various materials or processes, will develop more rapidly and will also present a situation of continuous innovation.

Online QQ Service, Click here

QQ Service

Wechat Service