A new wave of organic silicon expansion has arrived

Nov 29, 2019

 In recent years, due to the economic recovery in Europe and the United States, the international organic silicon production has increased slowly, while domestic single-capacity companies have significantly increased their capacity expansion. With the actual expansion of China's organic silicon monomer production, China's monomer enterprises have begun to battle overseas markets, and the export volume of primary forms of polysiloxane has been increasing year by year. Especially since August 2017, due to environmental inspections and low supply, domestic prices of organic silicon products have risen sharply, and the corresponding overseas export volume has increased significantly. According to customs data, in the first three quarters of 2017, China's total export volume of polysiloxanes in primary forms was 153,200 tons, a year-on-year increase of 47.25%. Among them, exports to South Korea, the United States and India accounted for about 41% of total exports.
The number of imports has increased sharply, and South Korea's imports account for 21%
From January to September 2017, China's total export volume of polysiloxane in primary form was 153,200 tons, a year-on-year increase of 47.25%. Among them, the monthly export volume in January-September 2017 was higher than the same period in 2016, with the largest increase in August, an increase of 82.4% year-on-year.
Among them, because Dow Corning and Momentive have production facilities in South Korea and South Korea ’s electronics and automotive industries have greater demand for organic silicon, South Korea became the largest importer from January to September 2017, with total imports of about 32,000 tons, accounting for 21%; the United States imports about 17,000 tons, accounting for 11% of total exports; India imports about 14,000 tons, accounting for 9%. In addition, Japan, Vietnam, Taiwan, Turkey, Thailand, and the Russian Federation are also regions with large silicone exports.
A new round of expansion is coming, and export products need to be upgraded
According to statistics, China has at least 1 million tons of new silicone production capacity in 2018, and a new round of expansion has arrived. Among them, Xinan Maitu Phase II is under construction, and the overall capacity will increase by about 50,000 tons after commissioning. Xinan will add 200,000 tons of monomers in Zhenjiang. It will be completed in 2019, with a total capacity of 550,000 tons. Other expansion plans such as Xingfa expanded 180,000 tons by 400,000 tons, Dongyue expanded by 400,000 tons, Hesheng Sichuan increased by 100,000 tons by 180,000 tons (close to completion), Hesheng Xinjiang built 200,000 tons; in addition, it was closed unexpectedly in 2014 and had Sanjia Group's planned 80,000-ton organic silicon / 50,000-ton metal silicon plant in Inner Mongolia has been planned to restart, and external cooperation is being sought. The silicone plant at the base has not been put into use. Silicon metal has been in operation for many years, and has good taste, which can meet the demand for 200,000 tons of organic silicon monomer. There is still room for expansion in the future, and its location and cost have certain advantages. Blue Star Fire previously planned to continue to launch 200,000 tons of units in the second phase of the new project.
If the above expansion is achieved by half, the market will be over-renewed in 2019. If all is achieved, it may take about five years to digest these new capacities. Although the export volume of domestic monomer enterprises has increased in recent years, most of them are low-end products, which cannot meet the demand for high-end products in overseas markets. In the future, as the demand for high-end products in overseas markets increases, if domestic products are not upgraded and upgraded, overseas There will also be no significant improvement in sales. Therefore, in the future, domestic enterprises should increase their R & D efforts and actively adjust their product structures in order to better base themselves on domestic and foreign markets.