The factors of the outbreak of market demands for the silicone rubber industry in China

In 2016, the total output value of silicone rubber of China reached 75%, ranked first in the world and this proportion is to increase in the next 2-3 years. With the increasing concentration of the silicone rubber enterprises and the environmental pressures, the prices of the silicone rubber rubber base reached RMB23,000/Ton in March 23th, 2017. After March, the trend of the price increasing of the silicone rubber compounds is also difficture to suppress, the price reached RMB21,000/Ton which is the highest of the year. Currently, the price of the ordinary silicone rubber compound is between RMB19,8000/Ton to RMB21,000/Ton. A lot of the manufacturers of the silicone rubbers in China said their orders are fulfilled, most of the orders are concluded based on the cash, the rapid flow of cash is benificial to the development of the industry of the silicone rubber in China. 

The manufacturers of the silicone rubber have to increase the price of the orders to reduce the pressure of the increased price of raw materials. Most of the plants of the silicone rubber said the increased price is positive to the development of the industry and also beneficial to the orders for exportation. Due to the full orders, most of the manufacturers of the silicone rubber are recruiting workers. 

The strong market demands for the silicone rubber industry is mainly related to the following three factors:

The sustained growth of the demands from the downstream manufacturers of the silicone rubbers in China, especially the rapid growth of manufacturing industry of the silicone rubbers in Pearl River Delta. Currently, the production capacity of the silicone rubbers in Pearl River Delta accounts for 2/3 of the total grobal production capacity of the silicone rubbers, 80% silicone rubbers are for exportation purpose.  

The self-adjustment of the industry of the silicone rubber base in China. In the past 3 years, there is almost no production expansion for those plants of organosilicone monomers. 

Many plants of organosilicone monomers in China are setting up their own plants of silicone rubber compounds, most of the silicone rubber base are produced for their own use instead of selling, which reduce the market supply of the silicone rubber base. It is reported that Wynca, Xingfa, Dong yue., etc are planning to build new production lines of the silicone rubber compounds. 

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