Jiang Xi Xin Jia Yi New Materials Co., Ltd.

Increacing Raw Material Price

Domestic market quotations: material costs continues to rise. Dow Corning, Wacker announced price increases, the rise range is 10-25%. In recent years, China's domestic chemical raw materials prices continue to rise, which has entered a new round of the high tide of price. Employees from foreign raw materials manufacturers strike,while the Chinese government has shut down a large number of small and medium raw material producers as environmental pressure. Since March 2017, the increase in cost and the decrease in supply are the main reasons for this round of price rise of organosilicon.

In terms of cost, the rise in energy prices will lift the central supply of the organosilicon industry,and the loss made some enterprises shut down for a long time will lead to the concentration of industry increased continuously,and environmental protection also leads to the interruption of partial production,so the degree of overcapacity in the industry will greatly alleviate. As the price rises, the entire industry may appear a period of complement stock market,so the price can be carried out smoothly, and the industry's profit will increase. The deeper reason is the low stock,with the environmental verification of some provinces in central and eastern China, the shutdown of the raw material enterprises will soon cause the market to be out of stock,and the price rises will soon spread all over the industry, which is also a very objective reason.

Recently, by Dow Corning distributor and Wacker's official website,we know that the main organosilicon products price of Dow Corning will be raised,the increase is 10%-15%, which will be implemented in October 15th.

Wacker's official website:
Since November 1, 2017, Wacker chemical group whose headquarters located in Munich up-regulated the prices of organosilicon polymers, silicone oil and other organosilicon products at the stage of production. The increase in this price is also involved in the gas phase silica products sold by the HDK® brand. According to the difference in the product range, area and business area, as long as the existing customer contract allows,the price increase can be up to 25%.

After 5 years of market test, the number of organosilicon enterprises has been reduced, especially the reduction of the number of upstream raw material enterprises has objectively led to the increase of the market share of the existing large enterprises,and the change of their production devices will inevitably affect the downstream, and the objective environment leads to the market will continue to rise at a high probability.
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