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, silicone DMC (Dimethylcyclosiloxane Mixture) was quoted at 60,000 yuan/ton on September 27, 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.


　　Shengang Securities stated that the price of DMC-based silicone products continues to hit new highs. From the perspective of the supply side, the global production capacity of organic silicon is gradually shifting to Asia, and domestic technologically backward companies have stopped production and limited production. The new capacity is mainly 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.


　　 Within the year, many listed companies are also increasing their industrial chain layout. On September 27th, 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, guarantee 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 intends 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 operation, 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.


　　 Baichuan Yingfu said that since the third quarter of this year, the supply of silicon metal, an upstream product of organic silicon, has been in a tight supply, which has provided strong support for the rise of organic silicon prices. The start-up load of enterprises has decreased, and subsequent prices are expected to continue to rise.