The recent continuous increase in prices is mainly affected by many factors: The progress of new production capacity is lower than expected; and the demand for downstream production resumption has increased; what’s more, the foreign market demand has led to an increase in exports, all these factors lead to the spot market is in short supply.

In the first half of this year, 900,000 tons of monomer production capacity has been built to be put into production, but it is currently in the commissioning stage, and the progress of production is not as good as expected. It is expected to be put into the market in the second quarter.

The large downstream real estate industry of silicone started construction after the Spring Festival, the demand for room temperature glue increased,  silicone products in the market recovered, and high temperature glue increased significantly are exceeded expectations, all resulting in a tight supply of raw materials.

The epidemic situation in foreign countries has gradually become normalized, management has begun to be liberalized, the economy of various industries has recovered, the demand for silicone has increased, and exports have increased significantly recently.

Because of all the above factors, it is expected that prices will fluctuate at a high level in the short term, and may continue to rise.