Recently, there has been a wave of price stability in the silicone market, with prices for dimethyl cyclic siloxane (DMC) from major monomer companies remaining stable on Monday. Since the second half of 2024, many industry giants such as Hesheng, Xinghuo, Xin'an, Xingfa, Dongyue, etc. have abandoned the price war model and instead focused on driving development through innovation, actively exploring new application areas, in order to achieve higher quality development.
As of January 6th, the latest data shows that the market prices of organic silicon related products have remained stable overall. Among them, the price of Luxi hydrolysate is 12300 yuan/ton, the mainstream price range of DMC spot is 12800-13700 yuan/ton, and the mainstream price range of raw rubber spot is between 14000-14700 yuan/ton. In addition, the mainstream spot price for 107 glue is 13500-14000 yuan/ton, while the mainstream spot prices for domestic silicone oil and imported silicone oil are 14800-16500 yuan/ton and 18500-19500 yuan/ton, respectively. Industry insiders generally believe that after the early price trough, the silicone market is gradually shifting towards a brand pricing model, and it is expected that prices will rise during the traditional peak season of the industry, such as the golden three silver four and golden nine silver ten periods.
At the same time, the silicone industry chain has also reached an important transformation node. The domestic silicone industry is gradually moving away from the prevalent "low price strategy" of the past year and placing greater emphasis on quality and brand building. In the silicon products market, brand operators and contract manufacturers are actively exploring new strategies beyond the "low price strategy" in order to seize more market share. With the increasing competition in cross-border marketing, silicone foundries need to continue to deepen supply chain management, improve supply chain efficiency, and enhance global competitiveness through the agglomeration effect of industrial belts.
At the strategic level, silicone foundries are shifting from a "large and comprehensive" development model to a differentiated positioning that shapes independent brands. Faced with the huge opportunities and complex situation in the global silicone market, contract manufacturers need to recognize their own advantages, actively respond to challenges, and continuously achieve self evolution.
It is worth mentioning that Vietnam has recently established a new silicone company with an annual production capacity of 6000 tons and a first phase investment of up to 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. The establishment of this new company will undoubtedly inject new vitality into the silicone market.
However, not all industries are showing an optimistic development trend. Stellantis Group, the world's fourth largest automaker, experienced a significant decline in car production in Italy in 2024, with a drop of up to 37%. Among them, the decline in sedan production is particularly significant, reaching the lowest level since 1956. This trend reflects the severe challenges and profound changes in the global automotive industry.
In addition, the changes in the global trade pattern have also had a profound impact on the shipping industry. Shipowners are shifting from ordering large vessels to ordering small vessels to adapt to changes in market demand. According to the latest data, the number of large vessels capable of carrying over 17000 20 foot containers that will be delivered by 2025 has significantly decreased, while the delivery volume of medium-sized vessels has significantly increased. This change reflects the shipping industry's keen insight and flexible response to market demand and risks.
In summary, the silicone market and 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 closely monitor market trends and flexibly adjust their strategies to adapt to the constantly changing business environment.