silicone coating

What is silicone material used for?

Silicon is one element that is very abundant and is top second on Earth,which is 25.8% on the earth surface. Most people knows the function of metal silicone. silicon semiconductor materials have boosted the development of modern electronic industry. In addition, silicate-based inorganic silicon compounds are widely existing in nature, which is very convenient to use. Over thousands of years, people use silicone related material to produce cement, glass, ceramics and other products.

Inorganic silicone compounds have been applied very early to produce products such as glass and ceramics. But organic silicone  compounds do not exist in nature. It is mainly by synthesis, and were synthesized in around 50 years ago. Since the industrialization in 1940s, organic silicone compounds have developed rapidly.

Organic silicon, also known as silicone or siloxane, is siloxane organic polymer  cross-linked from silicon and oxygen. It has good characteristics  with excellent heat resistance, cold resistance,  oxidation resistance and electrical insulation, which are not available from other general organic polymers. Among the organic silicon compounds, polysiloxane has wide application with its special structural characteristics.


silicone materials are mainly divided into silicone oil(Dimethicone/PDMS/ Dimethyl Silicone Fluid, silicone defoamer, silicone leveling agent, polyether modified silicone oil), silicone rubber, silicone resin and silane coupling agent etc. And there are various silicone material related products. For example, Dow Corning has more than 4000 kinds of types of silicone materials.  If converted into polysiloxane, the total global consumption of various silicone products is about 650,000 tons, which accounts for 0.65% of the global total output of different synthetic resin products. In addition, the sales amount of silicone products are as high as $6.5 billion, which accounts for 7% of the global  total sales amount of different synthetic resin products.

silicone can be widely used in the production of silicone fluid, agriculture silicone adjuvant, advanced lubricants, adhesives, dielectric oil, adhesives, paint, antifoaming agents, gasket, seals as well as spare parts for rocket and missile. In recent years, the silicone material has been applied gradually from military or national defense to people’s daily life. Products for daily application include conductive buttons for computer, mobile phones and electrical keyboard; contact lens, swimming glasses and swimming caps; nipple; silicone sealants for curtain wall; finishing agent for high end leather or fabric; silicone oil for shampoo. Silicone material has become a necessary part in people’s daily life. It also becomes a new chemical material with development  on its rise.

silicone coating

With the prospects of silicone material, many developed countries put silicone materials as one of the most important new materials for the key development of the new century. Organic silicon is new material itself, meanwhile it is also the new material foundation for the development of related industrial areas. Given the changing nature of organic silicon material and with the characteristics of  small volume wide application, it is reputed as the catalyst for scientific and technological development. In the silicone industry, only a few upstream enterprises are in large scale and most of them are small and medium-sized private enterprises engaged in the production of consuming products and additives.


Main silicone products and their applications

Silicone materials are mainly grouped into four categories: silicone oil with its secondary processing products, silicone rubber, silicone resin and silane coupling agent. It is known as industrial MSG as silicone products have the properties of electrical insulation, corrosion resistance, radiation resistance, flame resistance, high and low temperature resistance as well as physiological inertia. They are widely applied in building materials, electronic and electrical products, light industry, textile, plastics, rubber, machinery, transportation, medical and other industries. At present, the global annual production capacity of silicone products has reached more than 1.2 million tons. There are around 5,000 to 10,000 products, and the total market sales can reach US $7 billion.

Among the more than 10,000 kinds of silicone products can be roughly divided into three categories: raw materials, intermediates and  products. Silicone monomer refers to organic silicon polymer monomer synthesized by organic chlorosilane, such as raw materials like benzene chlorosilane, methyl chlorosilane, vinyl chlorosilane and some other materials.

Organic silicon intermediates refer to line type or ring type siloxane oligomers,  such as octaethylcyclotetrasilxane (D4), hexamethyldisilxane (MM),  dimethylcyclosilane mixture (DMC), etc.silicone products are the products produced by polymerization reaction with add of inorganic fillers or modified additives. It mainly includes silicone rubber (high temperature vulcanized silicone rubber and room temperature vulcanized silicone rubber), silicone oil and its secondary processing products, silicone resin and silane coupling agent. And through the sulfur molding process, silicone rubber can be made into conductive keys, seal gasket, swimming cap and many other consuming products.

Silicone monomer

Although there are many varieties of silicone products, its starting raw materials for production are limited to a few organic silicon monomers. The top amount is dimethyldichlorosilane, followed by phenylchlorosilane. In addition, trimethylchlorosilane, ethyl and propyl chlorosilane, vinyl chlorosilane, etc., are also necessary raw materials in the production of silicone products.

The production of silicon monomer is not complicated. The main raw material for silicon monomer is silicon block, methanol and hydrogen chloride. At present,  methyl chlorochloride monomer is synthesized in boiling bed reactor. Silicon powder and chloromethane is reacted under catalyst at high temperature which makes methyl chlorochloride mixture. And through efficient fractionation, target fraction is obtained. Silicone monomers are made by hydrolysis, lysis and condensation to get different products. With silicon monomer as the raw materia and using different polymerization means and processes, different silicone products can be produced by adding various fillers and additives.The basic raw materials for production of silicone oil, silicone rubber, silicone resin and silane coupling agent are different kinds of organic silicon monomers. From these basic silicone monomer, thousands of organic silicon products can be produced. Organic silicon monomers mainly include: methyl chlorosilane (methyl-monomer), phenylchlorosilane (benzene-monomer), methylvinyl chlorosilane, vinyl trichlorosilane, ethyltrichlorosilane, propyl trichlorosilane, γ-chloropropyl trichlorosilane and fluorosilane monomer. Among them, methylchlorosilane accounts for the top amount,which is 90% of the total total monomer, followed by phenyl chlorosilane.

Organochlorosilane (methylchlorosilane, phenylchlorosilane, vinyl chlorosilane) is the basis of the whole  silicone industry, and methylchlorosilane is the pillar in the organic silicone industry. Most of the silicone polymers are polydimethyl siloxane made from dimethyldichlorosilane. After adding with other groups such as phenyl, vinyl, chlorophenyl, fluoroalkyl, etc., the product can meet special needs. The production process of methylchlorosilane is very long and has difficulty in production technician. This industry is  technology-intensive and capital-intensive. Therefore, the basic manufacturing site of the major foreign companies are in large-scale and under centralized construction.  While the downstream products manufacturing are distributed as per their use and market conditions.

The key of the development for any polymer material is the monomer technology development. The feature of the silicone industry is that the monomer production is concentrated and the further process of silicone products are in different places. Therefore, the production of monomer plays an important role in the silicone industry. And the level of monomer production is a direct reflection of  the development of the silicone industry. 

Silicone intermediates

Organic silicon monomers can be made into different silicone intermediates by hydrolysis (or lysis) and lysis. Silicone intermediates is the direct raw material to form  silicone rubber, silicone oil, and silicone resin. Silicone intermediates include hexamethylcyclotrisiloxane(D3),  octaethylcyclic tetrasiloxane (D4),  hexamethyyldisiloxane(MM), dimethyl cyclosiloxane mixture (DMC) and other linear or cyclic siloxide series.

 Silicone rubber

Silicone rubber is one of the important products among silicone polymer. Among all the rubber, silicone rubber can work under a wide temperature range, from -100℃~350℃. It is excellent in the high and low temperature resistance. According to its thionization mechanism, silicone rubber has three categories: organic peroxide-induced free radical crosslinking type (High temperature vulcanized silicone), condensation reaction type (Room temperature vulcanized silicone) and addition reaction type.High temperature vulcanized silicone rubber (HTV): thermal vulcanized silicone rubber is also called high temperature  vulcanized silicone rubber. All the direct chain siloxane with molecular weight between 500,000-800,000 is grouped as high temperature vulcanized rubber. Usually gum can be made with octaethylcyclotetrasilxane (D4) as the main raw material and get polymerized under the catalysis of acid or alkali. Then with oxides as crosslinking agent and combined with different additives (such as reinforcing filler, thermal stabilizer, structural control agent, etc.), it can be made into homogeneous rubber additives. Various rubber products can be vulcanized  by molding, extrusion or calendering, etc.,

Room temperature vulcanized silicone rubber (RTV) and addition reaction silicone rubber (LSR). Room temperature vulcanized silicone rubber  refers to the one which use  low molecular weight active polyorganosiloxane as the base material and can be formed  with the crosslinker and catalyst at room temperature.

Addition reaction silicone rubber refers to the silicone rubber which is made under the addition reaction with platinum compound as catalyst. It has no by-products during the reaction. Usually it is composed by vinyl terminated polydimethylsiloxane, silicone resin, low molecular weight polymethylhydrosiloxane, platinum catalyst and reaction inhibitor, etc., It is also known as liquid silicone rubber or LSR. Usually addition reactive silicone rubber is also vulcanized at room temperature (medium temperature), so it is also classified as room temperature sulfide silicone rubber.The above two of these are referred to as room temperature vulcanized silicone rubber.


Room temperature vulcanized silicone rubber has low molecular weight (from 10,000 to 80,000), and it is viscous liquid. As per different package form, it can be divided into single component RTV silicone rubber and two component RTV silicone rubber. Single component RTV silicone rubber mixes the raw rubber evenly with filler, crosslinker or catalyst in anhydrous conditions. And it will react with the moisture in the atmosphere after opening. While two component RTV silicone rubber usually puts the raw rubber and crosslinker agent or catalyst in seperate package.It will link together when mixed in a certain ratio. Its reaction is not related with moisture.


Silicone Oil or Silicone Fluid

silicone oil is a kind of polysiloxane liquid oil with different viscosity. It is not toxic, not corrosive, has no smell and not easy to burn. According to the chemical structure, silicone oil can be divided into methyl silicone oil, phenyl silicone oil,  ethyl silicone oil, methyl hydrogen silicone oil, methyl chlorophenyl silicone oil, methyl phenyl silicone oil, methyl ethoxy silicone oil, and methyl trifluoropropane, etc,. Among them, methyl silicone oil is the top item. By changing the polymerization degree of polysiloxane and the type of organic group, or making polysiloxane polymerized with other organic compounds, silicone oil with different properties can be made, such as waterproofing, anti adhesion, demolding or defoaming. Sililone oil can also be grouped into linear silicone oil and modified silicone oil.

Silicone oil has many special properties. Its features include low viscosity temperature coefficient, antioxidant resistance, good resistance to high and low temperature, high flash point, excellent insulation, low volatility, low surface tension, no corrosion to the metal, non-toxic, etc,. With these properties, silicone oil has excellent effects in different applications. Among all kinds of silicone oils, methyl silicone oil is the most widely applied and is the most important type followed by methylphenyl silicone oil. Different functional silicone oils and modified silicone oils are mainly used for special purposes.

silicone potting

Silicone resin

Silicone resin is a semi-inorganic polymer with silicon-oxygen-silicon as the main chain and with silicon atoms cross-linked with organic groups. It is emerged along with the silicone monomer produced by the silicone monomer. Its production is half year ahead of silicone oil and silicone rubber.

Silicone resin has outstanding weather resistance, which is better than any other organic resin. Even under strong ultraviolet irradiation, silicone resin still has good yellowing resistance. Silicone also has superior dielectric properties. The property can remain stable in a wide range of temperature, humidity and frequency. In additionn, it also has good oxidation resistance, irradiation resistance, smoke resistance, waterproof, mildew prevention and other characteristics.


Silane coupling agent

The general formula of silane coupling agent can be as: Y-R-SiX3. X and Y are two active groups with different reaction characteristics. X is easy to bind strongly with clay, glass, silica, metal, and metal oxides, while Y is easy to bind with resin and rubber in organic material. With both functional groups that can have good reaction with organic and inorganic material, silane coupling agent can bond organic and inorganic material together to reach satisfactory bonding. According to the number of hydrolyzed groups (X groups) connected to silicon atoms, silane coupling agent can be divided into two groups: trifunctional and difunctional types. In recent years, the production of silane coupling agent is controlled by several giant companies. In order to form a monopoly, every company has named their own product types, and for the same product, there are various names and types on the market. Union Carbide Corporation (UCC) is the world’s largest silane coupling agent manufacturer and has the largest number of product varieties.Silane coupling agent was first developed as a glass fiber treatment agent for glass fiber-reinforced plastics. The silane coupling agent has improved the adhesion between the glass fiber and the resin, thus the mechanical properties of the reinforced plastics are significantly improved. With the rapid development of composites, silane coupling agent also develops rapidly both in variety and output. In recent years, silane coupling agent has adopted some specific functional groups and this can improve the surface properties of materials, which get new properties such as antimildew, antistatic, anticoagulation and physiological inert. This has become new application for silane coupling agent. Along with the new development, silane coupling agent become an important branch of organic silicone.


Development history of silicone

All compounds containing Si-C bonds are generally called organic silicon compounds. Those connect organic groups like oxygen, sulfur and nitrogen to silicon atoms are also regarded as organic silicon compounds. Among them, the polysiloxane composed of silicone oxygen bond (-Si-0-Si-) accounts for the top amount in silicone compounds. It is the most studied and widely applied type in silicone compounds, which is more than 90% of the total.Silicone material has both properties of organic materials and inorganic materials.It has many good properties such as high and low temperature resistance, ozone resistance, electrical insulation, radiation resistance, flame retardant, water resistance, non-toxic and physiological inertia and other excellent characteristics. Silicone material is widely applied in electrical, electronics, construction, chemical, textile, medical and other industries.The main functions of silicone include: sealing, adhesion, encapsulation, lubrication, coating, lamination, surface-activity, releasing, anti-foaming, crosslinking, waterproofing, penetrating, inertion and filling, etc. With the continuous development of the quantity and varieties of silicone material, it has become one of the most important material in the new chemical material field. Many varieties of silicone are unable to be replaced  by other chemicals.

silicone factory

Different phases of silicone chemistry

Beginning period: In 1863, French scientists Fiddle and Kraft heated silicon tetrachloride and zinc diethyl to 160℃ in a sealing tube and synthesized the first silicone compound , which is etraethyl silane with Si-C bonds. Since then, many more tetraethylsilane derivatives have been synthesized. The fourty years from 1863 to 1903 was the founding period of silicone chemistry, which was also reffered to as the first phase


Growing period: From 1904 to 1937, there are many simple silicone compounds were synthesized. Meanwhile,some ring and linear polysiloxane (with-Si-0-Si-bonds as the backbone). From the theoretical aspect, the synthesis of asymmetric silicon atomic compounds has been started, which created circumstance for the study of silicone photoactive isoforms. These 30 years was refered to as the growing period of silicone chemistry, which is also called as the second phase.

Development period: Chemist Hyde from Corning as well as Patnode and Rojo from General Electronics realized that silicone polymer would have good future, and they have actively improved the  synthesis of silicone monomer. This helped the industrialization of  silicone. In particular, Rojo invented the direct synthesis method for methyl chlorosilane in 1941. This was a revolution in the production of silicone and was a good foundation for the large scale production of silicone compounds. In the 1940s, when some of the major countries realized industrialization, the equilibrium reaction methods of polyorganic siloxane was invented. And a complete system of industrial technologies was established. Different types of silicone oil, silicone rubber, silicone resin and silane coupling agent with excellent performance have emerged. The development of silicone industry was accelerated. The period from 1938 to1965 was called the third phase.

Boom period: Since 1966, further to consolidating, developing, improving and utilizing the existing achievements, silicone was also developing in the new field. Some compounds which was impossible to make can also be synthesized. One of the group with the fastest development is silicon —— metal bonding compounds. Especially chemical products formed by silicon and transition elements, and this has more practical value. And silicone chemistry has yielded fruitful results. So the period from 1966 has been called the fourth phase.


The development of science has promoted the development of production and construction. And the production in turn has new requirements for scientific research. In many industries, thermal resistance is needed. But normal organic polymers cannot meet the demands. Natural silicate is long known but its -Si-0-Si- bond is fragile. Therefore chemist introduced silicon atoms with an organic group, which can make them a linear structure or low-degree crosslinked polymer. Thus the silicone material can form flexible or elastic material, and the application would be further enlarged. The study on organopolysiloxane also started. Chemist Hyde from Corning Glass first combined silicone and polymer chemistry and gained experience in silicone polymerization.Under his guidance, silicone resin was produced for electronic insulated glass cloth. From 1938 and 1941, Hyde and his collaborators developed many more polyorganic siloxane products. Meanwhile, Dow Chemical also started study and production of polyorganic siloxane. In 1942,  dimethyl silicone oil and toluene silicone pilot plant was established.

In 1943, Dow combined with Corning glass and established the world-famous Dow-Corning Chemical. They built the synthetic polysiloxane factory in Midland. And soon they developed DC4 ignition sealing material, which was applied on  aerial aircraft in World War II. Then Dow Corning Chemical gradually became one of the world’s largest professional manufacturers of silicone products.

In the past 20 years, the application of silicone technology has achieved brilliant level. Room temperature vulcanized silicone rubber and silane coupling agent got comprehensive development. Silicone polymer for biological and medical use also emerged. Now, many more silicone compounds were invented for a wide application. Many impossible things can be realized now due to the development of silicone material


From an annual output of 10,000 tons in 1997 to about 850,000 tons per year in 2015, methylchlorosilane has a rapid development, which is top among all the monomer. In the future, with methylchlorosilane production capacity increasing, the organic silicon industry will have further development in technology, with both capacity and quality get onto a new level.

chemical plant

Chemical prices plunged in China market

The price of thermal coal has dropped from its highest price of USD312/mt on October 19 to USD166 /mt in the China market. The price is almost down by 47%, nearly half. The price drop of thermal coal also dragged down the price of coal chemicals. Menanwhile, this dropping trend also inspire the spot market . The price of PVC, methanol, styrene, isobutylol, new glutaradiol has a sharp down trend , which makes a surprise in the market.

chemical plant

The price of coal chemical product has fallen sharply with the collapse of coal price

With the Chinese government taking all measures to maintain the steady supply of coal and electricity power, the coal price has dropped accordingly. And this also becomes the key reason for the sudden price dropping in the coal chemicals and other chemical raw material. Epoxy resin has a continuous sharp increase in past months. But its price has lowered down sharply recently. The price of solid epoxy resin is USD4200/MT, which is USD300/MT lower than one week ago. With the price dropping, the downstream customers are expecting lower price at USD4100 or even lower price of USD3950. And this also makes the market transaction atmosphere weak.


In addition to the epoxy resin, many other chemicals such as epoxy chlorpropane, phosphate, yellow phosphorus, and butyadiene have a price decline after China’s gold nine silver ten sales season. since early November, prices began to decrease. The price has plunged more than USD1300/MT one wek from USD5080 to USD3780/mt. This makes the whole chemical industry entering into winter before hand. The price of DMC was  USD6300/mt, down by USD1000/mt from the previous week, and the price of silicone oil(Polydimethylsiloxane) was USD6500/mt, which is 34% down from the highest point. Also, The pvc futures has fell five times by the daily limit. With the futures price continued to weaken, it is negative for the spot market. And now the quotation of PVC in future market and spot market two weak spot market was in chaos. In some regions, the price of PVC has dropped to less than USD1400/MT. Under the suppression of falling futures prices, traders are selling stocks immediately.

From the current series of actions of restraining unreasonable price increase of bulk commodities, the price increase expectation of chemical raw materials in next six months is very limited, and most products will gradually return to a reasonable range.

With the impact of the price reduction news, real order is very limited when some enterprises quote at high price. The less transaction also dragged the market down and the expectation of transaction is weakening. Some Industry experts said that one of the reasons for the price decrease is that the new expanded production capacity leads to obvious supply increment. And the buyers has strong bearish mood on the transaction with the supply and demand imbalance.

Chemical products

40 chemical products have drop in price with decrease more than USD130/MT 

With continuous hot increase in the recent chemical market, there are many chemicals with sudden price drop. And many of them are the products with hot increase and reach their historic highest point. This rapid change has made the buyers unpredictable.

The price of liquid ammonia was USD620/MT, and there is a price drop of USD130/MT with 20% less comparing with early August. With the impact of enterprise maintenance and shortage of domestic goods, liquid ammonia experienced a soaring market in mid-to-late July.  But the increase didn’t last long, and the price of liquid ammonia continued to decrease. With the poor traffic situation and high inventory caused by the epidemic, together with the high output at high operating,as well as less demand, the price of liquid ammonia dropped again and again.

Previously, the price of trichloromethane had started a speeding process. The price soared to USD546/MT, and even over USD635/MT. There was a single-day increase at 8.7%, which was the highest one-day increase in past 10 years. But with the high temperature weather cooling down, the demand from the refrigerant market become weak, domestic sales and foreign trade are not as expected, and its raw material liquid chlorine price is low. With all these impacts, trichloromethane prices dropped by 16% from early August.

Since the beginning of 2021, the price of PTA cost-end crude oil and PX has been increasing, and its auxiliary material acetic acid also has significant increase.Till the end of July, the PTA price was more than USD800/MT and some large scale factories even cut orders due to insufficient supply.However, with the operating of new PTA devices, the supply will increase. And now the domestic PTA price has dropped below USD710/MT. Its price has dropped by 13% comparing with the beginning of August.

Due to the influence of Shanxi flood, many urea factories in Jincheng stopped production. With the reduction of the market inventory and other multiple positive factors, the domestic urea spot market had a rise, and the local urea prices hit a new high. But with the end of peak agricultural season, and the industrial demand is insufficient, the market trend of urea is depressed. The price even drooped two times in one day. In order to ensure order volumes, the big factories have offered preferential price policies. Thus, the actual transaction price is much lower than expected, and the price decreased by USD60/MT or 12.37% from the beginning of August.

The export market of domestic MMA has expanded rapidly, and the monthly export volume has reached new highs. With more MMA export, less import and less output, the  market inventory of MMA in China market has decreased sharply, and the price has exceeded USD2222/MT. But by the end of Oct., the buyers are mostly watching and the negotiations were deadlocked.And the price is down by USD270/MT from the beginning of August with a drop around 11%.

Isooctanol prices had soared to USD2950/MT, up by 156% from the same period last year. While due to the weakened raw material price, and the supply increase, its prices also fell slightly.The newest offer is now decreased by USD200/MT with a decrease of 6.9% from early august.

The price of ethylene glycol has rushed to USD950/MT at a new high. But due to the rapid decrease in the downstream polyester end. The market expectation is not optimistic. Along with the supply recovery, the tight market inventory situation has finished. Its current price is down by USD60/MT at around 6% from early August.

It is reported that Wanhua Chemical, BASF, Shanghai Hensmai and Dow Chemical have all raised the price of MDI products. The supply of MDI is also tightening, and its prices have increased from June 2021, soaring from USD1900/MT to USD4500/MT. This price is almost highest in nearly three years. But recently the MDI market atmosphere turned weak and the price can be negotiated. The current market offer has decreased by USD200/MT around 5.64% from early August.

Ethyl acetate prices reached USD1450/MT and is highest in a decade. But the recent transaction price of main factories has declined and the trading atmosphere is not positive. The current price is down by USD80/MT and is around 4.91% lower comparing with early August. The ethyl acetate in China market may continue to weaken in short term.

In the silicone industry, the price is decreasing continuously since early November. DMC price has dropped to USD4900/MT, which is almost half of the price from the highest point in last month. With the DMC price plunging, price of dimethicone silicone oil and 107 RTV also dropped. The newest silicone oil PDMS price is around USD6900/MT. The sudden price drop makes the procurement stop the purchase and those who bought at higher price would have a stock loss.

In the titanium dioxide industry, with the winter coming, the construction coating consumption is decreasing. And the main market price of Rutile titanium dioxide like Lomon 996 is USD3200/MT. Other brands has a price of USD3100 to USD3300. with the demand weakening, the price of titanium dioxide can be negotiated as per the orders.

The organic pigment price also stopped increase and some item has a slight price drawback. The price of pigment yellow 74 has dropped from USD10.95/kg to USD10.50/kg. Products like Pigment Yellow 12 Pigment Yellow 13 also stopped for a further increase.

A collection of price decline of different chemical products

The price of dimethyl carbonate was USD1370/MT, down by USD740/MT from the previous week.

The phosphate price was USD2000/MT, down by USD690/MT from the previous week.

The liquid epoxy resin was quoted at USD5000/MT, down by USD630/mt from the previous week.

The price of propylene glycol was USD3450/MT, down by USD330/MT from the previous week.

DMF was quoted at USD2570/MT, down by USD280/MT from the previous week.

Butadiene was quoted at USD1060/MT, down by USD250/MT from the previous week.

MMA was quoted at USD1960/MT, down by USD20/MT from the previous week.

The price of natural anhydride was USD2400/MT, down by USD130/MT from the previous week.

Liquid chlorine price was USD200/MT, down by USD110/MT the previous week.

The caustic soda price was USD190/MT, down by USD60/MT from the previous week.

Phenol was quoted at USD1500/MT, down by USD60/MT from the previous week.

The PTA was quoted USD770/MT, down by USD56/mt from the previous week.


From the above datas, it is not difficult to see that the recent decline in chemical products mainly focuses on the previous chemical products with sharp increase, such as hydroxybenzene, ethylene glycol, polymerized MDI, ethyl acetate, etc. This is also in line with the previous market analysis which says that the chemical products would not always on the rise side and it would come down after it reach the peak.

chemical news


Why does the prices of chemical products plunge?

For the sudden plunge of the prices of chemical products, the experts says this is related to the recent huge changes in the chemical industry chain. The supply and demand situation between coal and other energy terminals is quietly changing. The downstream demand is lessening and the goods transportation is blocked in some regions due to heavy snow. All the different reasons to jointly lead to the diving of chemical products prices.

With the upstream raw material coal price has halved, the pressure for the chemical enterprises has been lessened in some degree. But the complex downstream situation still makes the chemical enterprises anxious. With the the end of the year getting closer and closer, the dual control policy on energy consumption is also becoming stricter. With the power limit, the orders  of downstream industry such as coating, plastics, clothing and textile, foreign trade processing industry and other industries are suppressed. So the transaction atmosphere in the market is not positive.

With the accumulation of inventory, the price have a trend of moving downward. With the temperature drop in the fourth quarter, the production and sales of many industries have entered into the off-season, and they have  resistance to the high cost of upstream raw materials. At the same time, with the mentality of buying at rise and not buying at decreasing, the purchase is very limited and a shrinkage in transaction is very obvious. With downstream customers continue to negotiate for discount prices, the market transaction is in dead-block. With the transaction pressure and pessimistic views on the market, some chemical enterprises have prices continuously.

Some chemical enterprises said that for the last two months of 2021, the focus is no longer securing more orders but to maintain a stable capital chain. With the uncertain industry situation, the chemical enterprises choose stabilize the old customers. For the new customers, they will only receive cash orders. They may also limit production and sales to avoid risks and maintain a stable capital chain to the greatest extent. Prices are no longer the key at the present. How to ensure to pass the winter safely and continue to spint in 2022 is the key.