DMC's leading enterprises give way to profits!

  On April 20, the domestic silicone market continued to be "cold in the late spring", and most manufacturers took the initiative to give up about 4% of the profits for all their products. However, the prices of overseas giants are firm. Shinyue Chemical announced that since May 2022, the prices of all silicone products shipped by Shinyue Chemical at home and abroad will increase by 10%. The responsible persons of Dow, Wacker and Meto said that they would also follow up and transfer the factory price. 

  It has been analyzed by domestic celebrities that after the domestic brutal growth, the silicone industry chain industry will inevitably have overcapacity and a major reshuffle will occur. In terms of upstream and downstream, it is certain to eliminate a batch, which means that the demand for upstream raw materials will decrease, and the performance and stock prices of each major upstream will naturally decline. It is only a matter of time.

  The industry believes that the homogenization bubble of the silicone industry chain is still large, and there is still a lot of room for elimination in the future.

  According to the data of the Association, there are still 400000 tons of new devices being tested in China from April to June, and the products will be put on the market soon. With the 500000 tons already put into production in the first quarter, 900000 tons of individual capacity will be added in the first half of this year, 200000 tons will be added by the end of 2021, and the cumulative increase of individual capacity this year will exceed 1.1 million tons.

  In order to seek new growth markets, domestic silicone manufacturers are vigorously exploring overseas markets. Including India and Southeast Asia markets with significant economic growth and expected growth in the future.

  Although overseas products kept rising, the epidemic continued to suppress domestic demand and cargo transportation, and factory procurement and order delivery were blocked. Various problems arose one after another. Supply and demand suffered double blows. The pressure of inflation+overcapacity on the silicone industry chain increased under multiple games, and the differentiation market continued.

  The adverse economic situation and the typical seasonal downturn in demand have led to a decline in the total shipments of products in the global silicone industry chain. In the first quarter, Hesheng's share of total shipments ranked first, and overseas Dow continued to lead in functional silicone shipments.