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Weekly review of Silicone Market in China

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Weekly review of Silicone Market in China

Classification:
Industry dynamics
Author:
Source:
2014/07/11
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Review:
[Abstract]:
SiliconNetworkunderstandsthatinSeptember,thesiliconemarketre-emergedpricemix,onlyfromthepricepointofview,itisdifficulttoriseinAugustpricesagainsufferedadownturn,JiangxiStarfireDMCquotationhasbeen19,00

  Silicon Network understands that in September, the silicone market re-emerged price mix, only from the price point of view, it is difficult to rise in August prices again suffered a downturn, Jiangxi Starfire DMC quotation has been 19,000 yuan / ton, major customers have other preferential prices, most manufacturers price more than 18500-18600 yuan / ton, and Hesheng Silicon Industry DMC can be shipped at 1820 yuan / ton price. According to reliable information, the Jinling silicone project in Shandong Province has been forced to stop temporarily, while the Luxi chemical silicone project has been shut down for nearly three months. According to convention, this time of the year is when silicone enterprises are making a lot of money, but this year's situation is very good. It is known that Dao Kangning-Wake's 400,000 tons/year unit capacity at Zhangjiagang base seems to be officially launching a fierce attack on domestic monomer factories. The quotation for one product of dimethyl silicone oil alone dropped to 19,000-19,500 yuan/ton, and there is still room for a bargain of 1,000 yuan/ton, according to the DMC price. In addition to the price of about 3000 yuan / ton of dimethyl silicone oil, the price of DMC produced by Dow Corning is about 15000 yuan / ton. According to industry insiders, in addition to its 400,000 tons/year unit capacity officially released in July and August, Dow Corning's large-scale price reduction may also be aimed at weakening the competitiveness of domestic small and medium-sized enterprises with serious homogenization level, abandoning the profits of its low-end products and giving up its advantages in the market. For example, the terminal and high-end product markets have given full play to their technological advantages. It is understood that due to the appreciation of the RMB and the excessive supply of the market, the low international market advantage of domestic silicone products has been threatened unprecedentedly. Some silicone rubber products manufacturers, which mainly rely on exports, have already experienced a prolonged downturn in the market. Forced to shut down production, the resulting high-temperature glue supply to its upstream supplier is estimated to have reduced production by at least two-thirds. It is reported that the Jinling Organosilicon Project in Shandong Province has been suspended, while the western Shandong chemical industry is said to have not resumed production, Hubei Xingfa also said that if the late market is still as low as now, not excluding the possibility of another shutdown, it is said that the silicone industry is now losing money, parking the loss is less, but the loss of equipment is very large. But the more we do, the more we lose. Now, the situation in the domestic silicon market is not optimistic. If we don't make optimistic estimates, the situation may not be greatly improved by the end of the year. Is it true as predicted? The domestic silicone industry has entered the process of shuffling ahead of time, and the survival of the fittest has become a reality that silicone enterprises have to face?