Silicone prices continue to rise, related companies increase their layout

Silicone prices continue to rise, related companies increase their layout


Silicone prices have continued to strengthen recently. According to the 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 industry chain, such as metallic silicon and dimethyl silicone oil, are also running at a high level.


Shenang Securities stated that the prices of DMC-based silicone products continue 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 capacity is mainly from the expansion of leading companies, and the industry concentration has increased significantly.


From the perspective of downstream products of organic silicon, products such as silicone rubber and silicone oil are widely used in construction, electronics, 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.


During the year, many listed companies are also increasing their industrial chain layout. On September 27, Huitian New Materials issued an announcement stating that the company signed a "Strategic Partnership Framework Agreement" with Jiangxi Blue Starfire Silicone Co., Ltd. on September 25, thereby increasing the depth and breadth of upstream and downstream supply chain cooperation. Under the new normal of the economy, we will support each other to establish the core competitive advantage of the industrial chain, ensure the sufficient supply of organic silicon raw materials, and meet the growing market demand of the company's downstream application industries.


On June 4, Huitian New Materials also issued an announcement stating that it plans to use its self-raised funds of RMB 2003 million to invest in the construction of a photovoltaic single-component silicone sealant project with an annual output of 30,000 tons. After the new production line is completed and put into production, the subsidiary Shanghai Huitian's photovoltaic single-component silicone production capacity will increase by more than 59%. During the year, Xingfa Group, Sanyou Chemical and other companies are also increasing the layout of related industrial chains.