In the twinkling of an eye, it is 2022. Looking back on 2021, I believe everyone feels a lot.






In 2021, the silicone market experienced ups and downs and constant stimulation. At the beginning of the year, there were wave after wave of price increases, and the upstream and downstream played games again and again, challenging the psychological pressure bearing capacity of every silicone person. This year, raw materials soared unprecedentedly, and the prices of DMC, raw rubber and silicone oil continued to hit record highs. Some people made a lot of money, while others were miserable. For a long time, the industry was shrouded in the anxiety of closing the offer and not reporting the goods behind the models






In 2021, there are many uncertainties in the epidemic situation and the external environment. Under the turbulent situation, we witnessed the popularity of rodent killing pioneers, experienced the troubles caused by carbon neutralization and power and production restriction, witnessed the continuous increase of monomer plants' production capacity, expansion of market share, M & A and strong power combination, and many emerging fields such as photovoltaic and liquid silica gel are still erupting






While opening 2022, let's take stock of what major events have taken place in the silicone industry in 2021, a tough, tortuous and extraordinary year.






Review of silicone DMC price trend in 2021








At the beginning of the first quarter of 2021, the price decline stimulated the downstream to prepare goods before the year. At the beginning of January, the low quotation of DMC was 19000 yuan / ton, and then driven by the bottom reading mood in the downstream. In mid and late January, DMC hit the bottom and rebounded. After the Spring Festival, the silicone market opened a bull market. After the Spring Festival, the mainstream opening quotation of DMC was 22300-23000 yuan / ton. In mid March, DMC once entered the 30000 era. Due to the rapid rise, it made an appropriate correction.


In the second quarter, April and may were relatively stable, and the DMC price fluctuated between 25500-28000 yuan / ton. In June, a sudden accident, DMC rushed into the 30000 era,


In the third quarter, the most shocking time node in the silicone market, which remained at a high level of 30000 yuan in July. In August and September, under the atmosphere of uncontrolled soaring and limited production, the transaction prices of new orders of major monomer factories also hit new highs. Especially in the week after the mid Autumn Festival, the speed soared in 10000. In September, DMC reached 63500 yuan / ton, breaking the highest price in decades of history.


In the fourth quarter, after the national day, DMC stood at the highest point of the year, 64200 yuan / ton. At this time, the downstream was plagued by power restriction, the increase could not be transmitted, and the atmosphere of forced production reduction and loss permeated the whole market. On October 20, the price began to plunge. The offers of major manufacturers were gradually reduced, running ahead in advance, and upside down occurred one after another. The downstream of high-level goods preparation suffered heavy losses. In mid December, DMC returned to the opening price after the Spring Festival in 2021, and the mainstream quotation was 23000 ~ 23500 yuan / ton. However, at the end of December, the price picked up again. As of December 30, DMC quoted 25500-26500 yuan / ton.


2022 is a big year for the centralized production of new silicone production capacity. The external environment is still full of turbulence. Will the supply and demand pattern be reversed? What new changes will the industry usher in? We continue to pay attention together.


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The new capacity of silicone monomer has been put into operation






Hesheng Shihezi 200000 ton siloxane project is fully produced!






At the end of January 2021, the distillation unit of Hesheng silicon Shihezi 200000 ton siloxane project has been successfully commissioned, and silicone intermediates were produced on February 10. The 200000 ton siloxane project covers an area of 935 mu with a total investment of 4.27 billion yuan. It is a downstream extension product of Xinjiang western Hesheng Silicon Industry Co., Ltd. with an annual output of 300000 tons of industrial silicon. On August 23, Hesheng silicon explained the current unit production and future planning of the company: the 200000 ton siloxane project in Shihezi has been fully produced.










Yunnan energy investment 400000 tons, phase I 200000 tons put into operation






The 400000 ton silicone monomer project of Yunnan Energy Investment Co., Ltd. was started on December 25, 2019. The project is constructed in two phases, with an annual output of 200000 tons of silicone monomer production line in each phase. On October 30, 2021, the chemical commissioning was fully started. At 00:40 a.m. on December 8, the first batch of 110 glue slowly flowed out of the outlet of production line 1, marking the successful output of the 200000 t / a silicone production unit of Yunnan energy investment phase I, and the completion of the production process.










Stellar chemistry: the silicone project has officially entered the trial production stage






On December 29, stellar technology announced: Recently, the trial production scheme of "120000 tons / year high-performance silicone polymer project" of Inner Mongolia stellar Chemical Co., Ltd., a subsidiary of stellar technology, was reviewed and approved by the expert group. It has the conditions for commissioning and can officially enter the trial production stage.










Dongyue silicon material: trial production of 300000 t / a silicone monomer and 200000 t / a silicone downstream product deep processing project






On December 31, Dongyue silicon announced that the company's fund-raising project "300000 t / a silicone monomer and 200000 t / a silicone downstream product deep processing project" has completed the main construction, equipment installation, commissioning and various acceptance works. The trial production scheme has been demonstrated by experts and approved by relevant departments. It meets the trial production conditions. The company will follow the product process The production process is arranged in stages and sequence.








Further improve the industrial chain and invest in industrial silicon projects by several monomer plants






1、 Hesheng silicon industry - industrial silicon Division: it is located in Xinjiang and has established "coal electricity silicon" integrated circular economy industrial park in Shihezi and Turpan. By the half year of 2021, the company's industrial silicon has reached 730000 tons / year. Subsequently, it is planned to carry out the hydropower silicon circular economy project - 800000 T / a industrial silicon in Zhaotong Industrial Park, Yunnan Province; The subsidiary will also invest in the second phase of the coal electricity silicon integration project of Xinjiang Eastern Hesheng Silicon Industry Co., Ltd., with an annual output of 400000 tons of industrial silicon project










2、 Dongyue Group announced that on September 30, 2021, Dongyue fluorosilicone Technology Group Co., Ltd., a wholly-owned subsidiary of the company, entered into a capital injection agreement to inject 152 million yuan into Hainan Guji investment partnership. After the capital injection, the capital injection amount of the company in Hainan Guji will account for about 89.73% of its registered capital.






Hainan Guji is a limited partnership fund engaged in investment activities with its own funds. Through its subsidiaries, it has injected a total of about 182 million yuan into the registered capital of two industrial silicon companies, namely Sichuan Leshan Xinhe Power Comprehensive Development Co., Ltd. and Sichuan Leshan Chuanhui burden Co., Ltd. Hainan Guji subsidiary holds about 82% equity of each of the two industrial silicon companies.






The two industrial silicon companies have built 13 smelting submerged arc furnaces with an annual design total capacity of about 130000 tons. 100000 t / a industrial silicon capacity has been approved and is under construction. Once completed, the total annual design capacity will further increase to about 230000 tons.










3、 Xin'an shares announced on the evening of November 25 that it plans to invest 246 million yuan to acquire 100% equity of Jingcheng silicon industry. Jingcheng silicon has an existing industrial silicon capacity of 54000 tons / year. After the completion of property right delivery, it is expected that the company will achieve self-sufficiency in industrial silicon in January 2022.






Xin'an has an industrial silicon production capacity of 100000 tons. In addition to acquiring external production capacity, Xin'an also improves the industrial silicon layout through self built projects. First, we will continue to promote the Pingwu Tianxin high purity silicon project. The production capacity of 32500 tons in phase I of the project is expected to be put into operation in the fourth quarter of 2022. In addition, the 100000 ton industrial silicon project under construction in Yanjin, Yunnan will also be put into production in the second half of 2022. In addition to the company's existing 100000 tons of industrial silicon and the newly acquired Jingcheng silicon industry, it is expected that the industrial silicon capacity of Xin'an Co., Ltd. is expected to reach more than 300000 by the end of 2022. It is worth noting that for the 100000 ton industrial silicon project under construction in Yanjin, Yunnan, the actual EIA application is 150000 tons and has been approved; Pingwu Tianxin phase II project construction procedures are also being handled simultaneously.










4、 In September 2021, Xingfa group said in the investigation of Xingfa group by relevant institutions: the situation of industrial silicon cloth is inevitable, and the company will consider that it is imperative to cut in by itself or related parties. The company does not want to be stuck in industrial silicon after the expansion of silicone production capacity. The company's style is layout and industrial integration. After the dual carbon strategy, it is difficult to increase the capacity of industrial silicon, and the company may adopt stock mergers and acquisitions. The company may also adopt strategic cooperation to ensure the source of industrial silicon under the same conditions. The company has silica resources. The company now transports the silica resources in Hubei to the southwest, processes them into industrial silicon, and then transports them to Yichang for consumption. The company has a certain foundation in industrial silicon. Now it just needs to build industrial silicon production capacity and stick to core assets.


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Organic silicon enterprise M & A






1. 120 million euros! Wacker acquires 60% of Shandong silicon technology






On October 27, 2021, Wacker, a chemical group headquartered in Munich, invested about 120 million euros to acquire 60% of the shares of Shandong silico new materials Co., Ltd. (Shandong silico), a special silane manufacturer in Jining, China. Both parties have signed relevant agreements. The whole transaction is expected to be completed in the first half of 2022 after being approved by the government regulatory authorities and passing the antitrust review.










2. Maitu announced the acquisition of KCC silicone business in Korea






Watford, New York - (January 6, 2021) - maitu high tech materials company ("maitu") announced that it had signed an agreement to acquire the silicone business of Korea KCC group ("KCC") in Korea and the UK and the silicone sales business in China. The acquisition will further strengthen maitu's global strength in high-end silicone products and professional applications.










3. Aiken acquired a new factory to accelerate the development of special silicone business






February 10, 2021: ekon signed an agreement to acquire a new plant near Lyon, France, which specializes in the production of highly specialized functional silicone (OFS) products. The acquisition further consolidated ekon's strategy - growth and specialization. The transaction price of the acquisition is tens of millions of euros, and it is expected to be officially put into operation by the end of 2021.










4. Sanfu Co., Ltd. plans to acquire 100% equity of othea Tangshan






On July 14, 2021, Sanfu Co., Ltd. announced that in order to optimize the company's industrial structure, further extend the company's industrial chain, improve the circular economy system, and improve the company's product added value and comprehensive competitive strength, the company plans to acquire 100% equity of othea Tangshan from othea China, and the company has signed the equity transfer agreement with effective conditions with othea China.










5. 12 million yuan! Dongjiang group plans to acquire Accor silicone products






Dongjiang Group Holdings (02283) announced that the group recently signed an asset acquisition agreement with Dongguan Accor silica gel products Co., Ltd. (Dongguan Accor silica gel) to acquire all its assets at a price of 12 million yuan, including its design and production technology, intellectual property rights, scientific and technological team, production facilities, customer resources, etc, To expand the group's technology and production capacity in silica gel mold and production solutions, and further expand the group's product portfolio and market.