Silicone industry in China is now showing signs of integration

Silicone, an important component of new silicone material, did not achieve the imaginary “good start” in the first year of the “Twelfth Five-Year Plan”, but it was deeply sinister in the overcapacity of the industry.

The reporter learned a few days ago that last year China's organic silicon methyl monomer production capacity was in an oversupply situation, among which two methyl monomer plants have been discontinued and there are signs of industrial integration.

Responsible person of China National Chemical Information Center said in an interview with reporters that the reality of overcapacity is undeniable, but it can be analyzed from another perspective. On the one hand, China's organic silicon industry can use this to further introduce high-end technologies and products; on the other hand, Some of the organic silicon products are high-end products for certain industries. After lowering prices, they can cover multiple industry sectors and cultivate multiple alternative markets.

It is reported that the organic silicon monomer occupies an important position in the silicone industry, and the monomer production level directly reflects the development level of the silicone industry. Among them, methyl monomers accounted for more than 90% of the total amount of monomers.

According to statistics from the Silicone Professional Committee of the China Fluorine-silicon Organic Materials Industry Association, as of the end of last year, there were 16 methyl monomer plants in China.

Data show that during the “12th Five-Year Plan” period, the average annual growth rate of organic silicon consumption in China will remain at about 18%. By 2015, the apparent consumption of silicone will reach 1.3 million tons, equivalent to about 2.6 million tons of silicone monomer.

However, since last year, the prices of organic silicon methyl monomers in China have dropped sharply, and companies have experienced "freezing points" in prices.

The above-mentioned person in charge told the reporter that the reduction in product prices has made it possible to highlight its price/performance ratio and expand its application in some areas. In the future, in addition to the introduction of high-end products, the structural transformation of the industry can also lead to the development of alternative markets and absorb excess capacity.

The National Development and Reform Commission released last year's "Guidance Catalogue for Industrial Structure Adjustment (2011 Edition)", which has incorporated new organic monomers such as phenylchlorosilane and ethylchlorosilane, special heavy silicone oil, high-performance silicone rubber and silicone resin, and high-efficiency coupling. Agents are listed in the encouraged category.

As a bulk raw material, silicone is widely used in traditional fields such as textile, electronics, and daily chemical, and some of its products are currently used in new fields such as new energy and environmental protection.

The Ministry of Industry and Information Technology had previously stated that the "12th Five-Year Plan" for the development of new materials also involved high-performance silicone materials.