Why is silicone price booming? Have you gotten the latest news?

Since 2021, the global silicone market demand continues to grow, superimposed on the reduction and withdrawal of overseas capacity. As the new epidemic control, domestic market strong recovery in demand picks up, silicone downstream enterprise order increases obviously, domestic monomer manufacturers inventories continued low, especially in the second half of the domestic monomer release new capacity not exceeding the expectation ", the recent DMC spot supply tension, combined with silicone monomer production rising raw material prices, The market price of DMC continues to hit new highs, and the continuous rise of raw material prices has brought great pressure to the downstream enterprises of silicone, which has caused a serious impact on the healthy development of the industry. JWT had announced the price adjustment to our customers, as the production cost of silicone keypads rise sharply under this unprecedented pressure.

Besides, the price booming of silicone, is largely related to the policy “dual control of energy consumption”. With the introduction of specific power and production limits in many places, the output of industrial silicone has been greatly affected. Same to JWT, our production capacity of silicone keypads will be largely reduced than normal conditions.

Here are the latest price adjustment come from the organic silicone market: After the Mid-Autumn Festival, silicon metal rose 20,000 RMB in 2 days. On Sept. 24th, 421# chemical grade silicone metal rose to 65500 RMB/ton, with a monthly increase of over 127%. Based on the strong support of the raw material end, DMC also jumped continuously. On Sept. 26th, the latest quotation of a manufacturer from Shandong Province was 63300 RMB/ton, which increased by 20,000 RMB/ton in only 4 working days after the festival. While other mainstream monomer factories only quoted on Friday, DMC quoted 60000-60500 RMB/ton, which was limited to receive orders within one hour, and then immediately closed. As of Sept. 26, DMC increased by more than 64% in a month and about 240% year-on-year. The price of silicone oil, silicone rubber synchronously rise.