Big price increase! All Shin-Etsu silicone products will increase in price by 10%-20%! The domestic silicone market may remain at a high level!
Big price increase! All Shin-Etsu silicone products will increase in price by 10%-20%! The domestic silicone market may remain at a high level!
Yesterday, Japan’s Shin-Etsu Chemical Group announced that it will increase the prices of all its silicone products globally! !
Price increase range: Worldwide, all Shin-Etsu silicone products
Price increase: 10%—20%
Effective time: January 2018
Shin-Etsu said that this price increase is mainly due to the increase in the price of metallic silicon, the main raw material of organic silicon, and the reasons for this situation are China is the main producer of silicon metal – the prices of raw materials, carbon electrodes and coal in China have increased significantly, resulting in a significant increase in the production cost of silicon metal. In addition, the rise in the price of silicon metal is also related to China’s increasingly strict environmental inspections and some enterprises. Stop is directly related. Taking these factors into account, the price of metallic silicon may rise further; in addition, the energy costs and transportation costs of silicone production are also increasing.
It is for these reasons that Shin-Etsu decided to increase the price of silicone products!
At present, the domestic silicone market negative factorsIncrease:
1. The Golden Nine and Silver Ten have passed, and the silicone market has gradually entered the off-season;
2. Part of the domestic production capacity has been gradually released, and the supply level has increased;
3. Silicone downstream companies resist the suspected price control behavior of individual companies.
The silicone market is showing a softening trend, and corporate quotations have mostly declined slightly.
However, will the silicone market achieve a 180-degree turn and prices fall rapidly? I’m afraid it’s unlikely, mainly due to the following factors:
1. The construction period of large-scale new domestic production capacity is long and it is difficult to put it on the market in the short term;
2. Environmental protection inspections have gradually become the norm, and some small and medium-sized silicon companies have been shut down and difficult to reopen;
3. International silicone giants such as Wacker, Shin-Etsu, Elkem, and Dow Corning have increased their prices. Unless domestic silicone production capacity is seriously overcapacity, these companies will Lowering prices and spitting out fat is less likely.
Therefore, Shin-Etsu’s follow-up this time may not push domestic silicone prices to rise further.However, this collective price increase by international silicone giants may keep the domestic silicone market operating at a high level!
