The Growth Situation of Silicone Raw Material Cost

Most of DMC brand holders have adjusted the spot price. The spot price up to 36100 yuan/ton. Imports of silicone oil rose to 51000 yuan/ton. And 107 rubber increased to 37000 yuan/ton.

At the beginning of 2022,silicone raw material price rises continue to spread. It is a hard time for the silicone sealant manufacture and can not bear the cost pressure. Most of manufacturer have increased the unit price.

According to the information, in the first quarter of 2022, more than 30 brand silicone rubber enterprises announced price increases, up to 40%.

After experiencing a wave of fierce raw material price rises, there are also many downstream giants began to turn “defense” for “attack”, they got together to make their own raw materials. ”Self-sufficiency” can not only effectively resist the risk of raw material price fluctuations, but also reduce the cost of enterprise operation. According to the current signals released by the major monomer giants, the price rise of raw material will continue in 2022, the volatility of raw materials is large, and the downstream enterprises of organic silicon should go all out to prepare for a tough battle.

At present, the rising price of raw materials is a common problem faced by the whole silicone industry. The middle and downstream enterprises are in the middle link. No matter they produce or sell, they are bound to be affected by both the upstream supply side and the downstream demand side. Only by constantly improving the management ability and innovation ability can become stronger in resisting risks. Improve product quality through innovation and get out of the dilemma of price competition caused by the high homogeneity of low-end market; Through innovative application, improve enterprise operation and production efficiency, optimize management, brand pricing is the solution.

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