Recently, there has been a wave of price stabilization in the silicone industry, with many companies taking action to break free from the internal competition mode of price wars and instead use innovation as an engine to explore new growth points and promote the industry towards high-quality development.
Since the second half of 2024, several organic silicon enterprises including Hesheng, Xinghuo, Xin'an, Xingfa, and Dongyue have begun to seek a new path with quality and innovation as their core competitiveness. These enterprises realize that pure price competition can no longer sustain the development of the industry. Only through technological innovation and product upgrades can they capture new application scenarios and meet market demand.
In terms of market prices, as of the latest data, the quotations for organic silicon related products have shown a stable trend. The mainstream spot price for DMC (dimethyl cyclic siloxane) is between 12800-13700 yuan/ton, the mainstream spot price for raw rubber is between 14000-14700 yuan/ton, and the mainstream spot price for 107 rubber is between 13500-14000 yuan/ton. Industry insiders point out that after initial price adjustments, the market is now shifting towards brand pricing, and companies are paying more attention to product quality and brand building.
At the same time, the silicone industry chain has also entered a new stage of development. As consumers' demands for product quality continue to increase, the silicone product market is showing a trend of branding and differentiation. In order to compete for market share, brand operators and contract manufacturers have increased their R&D investment, improved product quality, and innovation capabilities.
In the cross-border marketing of silicone products, competition is becoming increasingly fierce. Contract manufacturers need to continuously improve supply chain efficiency, reduce costs, and focus on brand building and market promotion to gain greater profit margins. In addition, with the changing global trade pattern, silicone foundries also need to pay attention to the dynamics of the international market and flexibly adjust their export strategies to cope with potential market risks.
It is worth noting that Vietnam has recently established a new silicone company, focusing on the field of adhesives, with products covering functional silicone materials such as silicone gel, conductive, heat-conducting, and shielding. The establishment of this new company not only injects new vitality into the Vietnamese silicone market, but also brings new opportunities to the global silicone industry chain.
However, not all industries are showing an optimistic trend. The global automotive manufacturing industry is facing severe challenges. Taking Stellantis Group as an example, the group's car production in Italy will significantly decline in 2024, with sedan production reaching its lowest level in many years. This trend reflects profound changes in the global automotive industry and changes in market demand.
At the same time, the global shipping industry is also undergoing transformation and change. As the market demand for large vessels decreases and risk factors increase, ship owners are turning to ordering smaller vessels. This change not only reflects the shipping industry's keen insight into market demand, but also indicates that the future shipping market will be more diversified and flexible.
In summary, the organic silicon industry and the silicone industry chain are facing new opportunities and challenges. Enterprises need to closely monitor market dynamics and industry trends, adjust their strategies and product structures in a timely manner to adapt to constantly changing market demands. At the same time, the government and relevant institutions also need to strengthen policy guidance and support to promote the industry towards high-quality development.