Recently, the significant surge in raw material prices has brought unprecedented cost pressure to silicone enterprises. In order to address this challenge, silicone companies have adopted a series of response strategies. Among them, the price increase proposal has become one of the important means for enterprises to balance costs and profits.
On February 19th, although the strong performance of the A-share market did not fully offset the negative impact of rising raw material prices, it provided some market confidence for silicone companies. The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index have achieved varying degrees of gains, and the organic silicon sector has also risen in line with the market trend. However, this market performance has not changed the severe challenges brought by the rise in raw material prices.


In response to the challenge of rising costs, silicone companies have taken various measures. On the one hand, enterprises should strengthen communication and cooperation with suppliers to strive for more favorable raw material procurement prices; On the other hand, enterprises optimize production processes and technological innovation to reduce production costs and improve production efficiency. In addition, the company also conveys cost pressure to downstream customers through price increase proposals and seeks reasonable price adjustments.
However, raising prices is not an easy task. Downstream enterprises also need to consider carefully when facing cost pressures. In order to maintain normal operations and profit margins, midstream and downstream enterprises need to closely monitor market dynamics and customer demand to ensure the rationality of product prices and market competitiveness. At the same time, enterprises also need to strengthen inventory management and capital operations to cope with possible market fluctuations and risks.
Despite facing many challenges and difficulties, organic silicon enterprises still demonstrate strong resilience and market competitiveness. In the future, with the gradual stability of the raw material market and the gradual recovery of terminal demand, organic silicon enterprises are expected to achieve more stable and sustainable development.