Recently, there has been a stabilizing trend in the silicone industry. On Monday, the DMC (dimethyl cyclic siloxane) quotations of major monomer enterprises remained stable. Since the second half of 2024, many enterprises including Hesheng, Xinghuo, Xin'an, Xingfa, and Dongyue have begun to break away from the price internalization model and instead seek a high-quality development path driven by innovation, actively capturing new application scenarios.
As of January 6th, the market prices of organic silicon related products have shown a stable trend. The online quoted price for Luxi hydrolysate is 12300 yuan/ton, the mainstream spot price for DMC is between 12800-13700 yuan/ton, the mainstream spot price for raw rubber is between 14000-14700 yuan/ton, the mainstream spot price for 107 rubber is between 13500-14000 yuan/ton, the mainstream spot price for domestic silicone oil is between 14800-16500 yuan/ton, and the mainstream spot price for imported silicone oil is between 18500-19500 yuan/ton. In addition, the quotation for 421 # metal silicon is 12500-13100 yuan/ton, the quotation for chloromethane is 2650-2750 yuan/ton, and the mainstream quotation for high hydrogen silicone oil is 7500-7800 yuan/ton. Industry insiders have pointed out that the price of organic silicon has already reached a low point and is now shifting towards brand pricing. It is expected that there may be price increases during the industry cycle, such as during periods of gold, silver, silver, gold, nine, and ten.
At the same time, the silicone industry chain has also reached a new turning point. The domestic silicone industry is gradually revising its "low price strategy" pursued in the past year, and instead placing more emphasis on quality and brand pricing strategies. In the silicon products market, brand operators and contract manufacturers are exploring new strategies beyond the "low price strategy" in order to compete for new growth. The competition for cross-border marketing of silicone products is becoming increasingly fierce, and contract factories need to continue to seek profits from the supply chain, dig deep into supply chain efficiency, and "string beads into a chain" of enterprises, utilizing the advantages of industrial belt aggregation to gain global competitiveness.
In terms of strategic adjustment, silicone foundries are shifting from a "large and comprehensive" model to a differentiated positioning that shapes independent brands. The global silicone market holds enormous opportunities, but the situation is also more complex than the domestic market. Contract manufacturers need to recognize their strengths, face the challenges behind the new blue ocean, and learn to evolve themselves.
In addition, Vietnam has recently established a new silicone company with an annual production capacity of 6000 tons and a first phase investment of 81 million RMB. The company focuses on the field of adhesives, with products covering functional silicone materials such as silicone, conductive, heat-conducting, and shielding to meet the needs of overseas electronic products, new energy, and other industries.
However, not all industries are showing an optimistic trend. Stellantis Group, the world's fourth largest automaker, saw a 37% decline in car production in Italy in 2024, with sedan production reaching its lowest level since 1956. This trend reflects the challenges and changes in the global automotive industry.
At the same time, the shift in global trade has also prompted shipowners to shift from ordering larger vessels to ordering smaller ones. The number of large vessels capable of carrying over 17000 20 foot containers that will be delivered by 2025 will significantly decrease, while the delivery volume of medium-sized vessels will significantly increase. This change reflects the shipping industry's reassessment of market demand and risk.
In summary, the silicone industry and the silicone industry chain are undergoing an important period of transformation, while the global automotive and shipping industries are also facing new challenges and opportunities. Enterprises in various industries need to adjust their strategies in a timely manner according to market changes to adapt to the constantly changing business environment.