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September---Historic Moment of Silicone

2021/10/23

What is the current situation of the global economy and manufacturing industry?

Half is sea water and half is flame.

The downstream lacks money, cores, and consumption; upstream lacks coal, electricity, and various raw materials...

What's more serious is that the US dollar flood has begun to impact the global economy, coal prices hit a record high; oil prices may reach 100 US dollars per barrel; natural gas prices soar all the way, and Europe is about to experience the coldest and most expensive winter...

As a result, some people predict that the global economic crisis and large-scale inflation will hit all-out soon...

This year, the silicone industry is experiencing the biggest storm in history. Under the influence of the "energy dual control" policy and the single-order policy, the supply of metal silicon has decreased, while the demand for polysilicon and organic silicon has continued to grow. Therefore, the market has an unusually strong atmosphere for speculation, which has pushed the price of metal silicon to record highs.

In September, there was a large-scale power cut, with two openings and five stops, and one opening and six stops...

In September, in addition to the wave of price hikes, there were also waves of "power curtailment" frequently used, starting two and stopping five, opening two and stopping two, opening one and stopping six... unprecedented, especially in Yunnan. Reducing the operating rate of silicon metal by 90% is the most sensational in the silicone market. As soon as the news came out, the price started a crazy scene of 10,000 yuan per day.

In three months before the "year-end exam", 16 regions named by the Ministry of Industry and Information Technology, including Guangdong, Zhejiang, Yunnan, and Jiangsu, have taken measures one after another. Although official media have criticized this emergency brake method, it is too vigorous in China. The “dual energy consumption control” policy is very strict. According to the current attitudes of provinces and cities, the intensity of energy consumption control in the fourth quarter is still not slack, and the start of production after the holiday is still full of variables.

The road is not alone, the world is one family. We are more deeply aware of the meaning of a community of destiny than ever before. Under the new crown epidemic and the increasingly complex international political and economic situation, everyone has a deep sense of uncertainty and has explored and researched ways of survival. Co-existence is the focus of discussions on related topics.

Take sealant companies as an example. As the prices of raw materials continue to rise, competition and cost pressures continue to heat up. Many companies turn their heads on quality when they reach the top of their innovation. Boiling material and filling with inferior fillers. In the short term, it may seem that it is only using some means that ignore the bottom line to grab the market, but in the long term, this will be a fatal disaster for the industry, users, and own company. It is foreseeable that its ultimate The result will only be notorious in the entire industry chain.

The silicone industry has become an important basic and leading industry for the high-quality development of China’s economy due to its high technical content, high added value, and strong compatibility with various sectors of the national economy. Its development is directly related to China’s development. Innovation or healthy development of strategic emerging industries. At present, the technological development of the silicone industry is advancing by leaps and bounds, and the ability of independent innovation has been greatly improved. However, at the same time, there are still “stuck necks” in key areas, and the issue of “strong foundation” for industrial upgrading is imminent.

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