The decline of silicone market rebounded, and DMC fell 27.2% this month


The "silver ten" of silicone market suffered a rebound from the decline, and ended with a wide decline in the last week. At the beginning of the month, some monomer plants pulled up and then adjusted back, which raised the bearish mentality of the middle and lower reaches, gradually cooled their willingness to purchase DMC, and generally lacked orders after the festival. In the middle of June, the inventory of monomer factories in Shandong accumulated and sold through bidding. The bearish mentality of middle and downstream manufacturers became more and more firm, mostly on the sidelines. At the end of the month, the mainstream monomer factory opened a sharp diving market, and the quotation directly fell from 63000 yuan / ton to 51000-55000 yuan / ton, with a decline of 8000-12000 yuan / ton. Unexpectedly, the monomer factory in Shandong fell another 5000 yuan / ton, and the quotation was 45000 yuan / ton. Due to the huge decline, the early preparation of goods in the middle and lower reaches faces a significant loss. When the decline is not stable, most middle and lower reaches manufacturers mainly wait and see.


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. The two sides signed relevant agreements today. 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.


"Our new partnership with Shandong silicon technology is another measure for us to continue to implement the strategy of further expanding the share of high-profit special products in wacker's global silicone business," said Christian Hartel, President and CEO of Wacker. "Shandong silicico is a leading manufacturer of organic functional silane in China. Organic functional silane is an important component of high-efficiency adhesives, sealants, coatings and composites. Wacker also has decades of rich experience in this field. But so far, we only produce organic functional silane in Germany. Through the equity acquisition of Shandong silicico, we can make progress Further expand the types of high-quality special products provided for the Asian market, and be closer to our customers in the fast-growing Asian consumer market.