Chemical City Review: How to fill in the silicone market gap?

Since the second quarter of this year, many chemical products have experienced a trend of high shocks and demand has shrunk. However, the prices of organic silicon products have not only been high, but also the supply of products is in short supply.

The lack of demand for organic silicon production has also affected the healthy development of related industries. Silicone materials are known as "industrial monosodium glutamate" and are widely used in the automotive, construction, textile, chemical, light industry, food, aerospace, instrumentation, medical and health fields. The rapid development of these downstream industries has made our country organic. Demand for silicon is growing at a rate of 20% per year. According to statistics, there are currently about 300 organosilicon processing companies in China. The annual demand exceeds 300,000 tons, while domestic self-sufficiency is only about 100,000 tons, and nearly 70% needs to be resolved by imports. However, in the international market, the supply of organic silicon products also falls short of demand. The supply gap for this year is expected to be about 400,000 tons. Such high demand growth and the gap between supply and demand make it difficult to raise the prices of organic and domestic silicone raw materials.

The severe imbalance between supply and demand in the domestic silicone market has brought great pressure on the continued development of downstream industries. At the same time, due to the relative backwardness of domestic organic silicon monomer production technology, barriers to the development of organic silicon technologies and the long construction period of new devices, the supply of organic silicon monomers will not show significant growth in the coming years. The supply gap is difficult to fill in the short term. Therefore, in the current situation where the domestic variety and level of organic silicon products are difficult to meet market demand, strengthening the strength of domestic enterprises in scientific and technological development, attracting foreign investment, and accelerating the introduction of foreign advanced technology and management experience, has become China's organic silicon industry to achieve sustainable The key to development.

Recently, there is a voice in the development of silicones that silicone processing is a high-energy-consuming industry that consumes large amounts of wood and mineral resources. However, China currently imports a large amount of processed silicone monomers and materials each year while exporting large amounts of silicon blocks, which is obviously not as economic as its own processing. As for the consumption of wood, we can learn from foreign experience. For example, Dow Corning's factory in Brazil is relying on its own trees to guarantee the demand for wood for processing. What is important is that the development of the organic silicon industry in China must make the plate bigger. In the current situation where the domestic level is relatively low, it is a short cut to adopt the “ism,” but when we introduce it, we must introduce mature products. International projects and technologies really begin with the goal of building a "harmonious society."

From the experience of the development of foreign silicone industry, the market development is taking a bottom-up development model, and the output is matched with the downstream demand, and this takes a sustainable development path. At present in China, due to the conflict between supply and demand, the market gap will continue to exist after the expansion and proposed investment projects are completed. Therefore, there is still a lot of room for market development. To this end, the relevant state departments have listed silicone as an industry that actively encourages development, encourages foreign investors to increase investment, and conducts cooperative R&D with domestic silicone companies. This policy is undoubtedly a big plus for the healthy development of the domestic silicone market. However, to truly achieve the sustainable development of the silicone industry, integrating the upstream and downstream industries, and filling the gaps in the domestic market, it also requires joint efforts and sincere cooperation.

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