The prices of the silicone products in China may keep going up in the following months

Recently, the Chinese Central Environmental Protection Inspectorate launched a supervision focusing on "2+26" air pollution towards the area of Beijing, Tianjin and Hebei. From April, 2017, the Ministry of environmental protection will  start the environmental inspection towards the 15 provinces and cities, including Hunan, Anhui, Xinjiang, Tibet, Guizhou, Sichuan, Shanxi, Shandong, Tianjin, Hainan, Liaoning, Jilin, Zhejiang, Shanghai and Fujian. In order to deal with the inspection in advance, some provices and cities had already started the self inpection, for example, the first 5 groups of inspectors from Shangdong Environmental Protection Inspectorate had already entered into more than 10 cities, including Zibo, Dongying, Weifang, Jining, Tai'an, Laiwu, Liaocheng, Rizhao, Binzhou, Heze since March 22th.  Affacted by the inspection, many plants of the chemical raw materials located in Shandong, Zhejiang, Tianjin, Hebei, Shanxi, Shanghai, Xinjiang, Sichuan, Liaoning, Jilin., etc will have some troubles. As regard of some basic chemical raw materials of high degree of concentration, the shortage of supply caused by the plant shutdown will become a reality. 

Specific to the silicone industry, because Shandong, Zhejiang, Sichuan, Xinjiang., etc are all in the verification scope, while these provinces are the main production bases for chlor alkali, silica fume and methyl chloride, chlorosilane and other important basic raw materias for silicones in China, so the future supply of the silicone products may be affected, some of the manufacturers of organosilicon monomers located in these plances had already expressed a plan of equipment maintenance and relocation, some of them said the restart time of the equipment will be postponed to the end of the verification. Even more, some of the leading enterprises of the crosslinking agents are forced to shutdown due to the price increase or the supply shortage of the raw materials. 

Due to the recent 5 years' market competition, the numbers of the silicone plants, especially for those plants of upstream raw organosilicon materials had been reduced a lot, it objectively increase the market share of the existing plants, the situation of their equipment will cause a large affection on the plants of the downstream, so there is large probability that the prices of the organosilicon materials in China will keep going up in the following days. 

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