Recently, the silicone industry has shown a trend of seeking progress while maintaining stability, with major enterprises taking action to seek breakthroughs in the fierce market competition. Since the second half of 2024, many leading companies such as Hesheng, Xinghuo, Xin'an, Xingfa, and Dongyue have no longer relied solely on price competition, but have begun to explore new application scenarios with innovation as the guide, in order to promote the entire industry to move towards a high-quality development stage.
Market data shows that as of January 6th, the prices of organic silicon related products have remained relatively stable. The quotation for Luxi hydrolysate is 12300 yuan/ton, the mainstream price range for DMC spot is 12800-13700 yuan/ton, and the mainstream spot price for raw rubber is between 14000-14700 yuan/ton. At the same time, 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 believe that the price of organic silicon has already hit a low point, and now the market is gradually shifting towards brand pricing. In the future, during the cyclical fluctuations of the industry, such as the traditional peak sales season, prices are expected to rise.
At the same time, the silicone industry chain has also entered a critical period of transformation. In the past year, the "low price strategy" commonly used in the silicone industry is gradually being revised, and quality and brand building have become the consensus of more and more enterprises. In the silicon products market, competition between brand operators and contract manufacturers is becoming increasingly fierce. In order to compete for market share, they are actively exploring new competitive strategies in order to find new growth points beyond the "low price strategy".
In terms of supply chain, silicone foundries face enormous challenges and opportunities. In order to reduce costs and improve efficiency, contract factories need to continuously tap into the potential of the supply chain and promote further improvement of supply chain efficiency. At the same time, in order to gain a competitive advantage in the global market, contract factories also need to "string together" their enterprises, utilizing the advantages of industrial belt clustering to form economies of scale and synergies.
In terms of strategic adjustment, silicone foundries are shifting from the past "big and comprehensive" model to a more focused differentiation positioning on shaping independent brands. They are well aware that there are huge opportunities in the global silicone market, but at the same time, they also face complex situations and challenges. Therefore, contract manufacturers need to recognize their advantages, face the challenges of new markets, learn to evolve themselves, and continuously improve their competitiveness and brand influence.
It is worth noting that Vietnam has recently established a new silicone company with an annual production capacity of 6000 tons and a first phase investment of over 80 million RMB. The establishment of this new company not only injects new vitality into the silicone market, but also demonstrates Vietnam's potential and strength in the silicone industry.
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 severe challenges and profound changes in the global automotive industry, and also reminds other industry enterprises to closely monitor market dynamics and adjust their strategies in a timely manner to adapt to the constantly changing market environment.
In addition, changes in the global trade landscape have also had an impact on ship owners' booking strategies. Due to the reduced market demand and increased risk factors faced by large vessels, ship owners have begun to turn to ordering smaller vessels. According to data, 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 keen insight into market demand and flexible response capabilities.
In summary, the organic silicon industry and the silicone industry chain are undergoing an important period of transformation, facing new challenges and opportunities. Enterprises in various industries need to closely monitor market dynamics and industry trends, adjust their strategies and business models in a timely manner to adapt to the constantly changing market environment. At the same time, they also need to strengthen their innovation and brand building capabilities to enhance their competitiveness and brand influence.