China Business Intelligence Network News: In the past ten years, the global production capacity of organic silicon has shifted to China. China has become a major producer and consumer of organic silicon. The advantages of domestic organic silicon products have become more prominent, and the import substitution effect has been remarkable. According to statistics, as of 2017, there are 13 methyl monomer manufacturers in China (including Dow-Wake Zhangjiagang Plant), with a total polysilicon production capacity of 1.38 million tons/year (production capacity of 1.27 million tons/year). The output was 1.02 million tons, up 3.6% and 13.4% respectively. It is estimated that the total production capacity of polysilicon in China will reach 1.85 million tons/year in 2022, and the output will reach 1.5 million tons. The average annual growth rate during 2017-2022 will be 6% and 8% respectively.




Source: China Business Research Institute


From 2008 to 2010, China's new silicone silicon project expanded rapidly, and the production capacity of polysiloxanes exploded. In addition, the gap between domestic and foreign companies' technology levels and foreign countries, resulting in a significant decline in industry capacity utilization during the period. Since then, domestic production capacity has entered a stage of moderate expansion. With the gradual digestion of excess capacity, industrial technology advancement and the improvement of enterprise process management level, the industry capacity utilization rate has continued to rise. As of 2017, China's polysilicon capacity utilization rate reached 74.2%, an increase of 6.43 percentage points compared with 2016, the highest level in nearly a decade. It is estimated that by 2022, the utilization rate of polysiloxane capacity in China will further increase to 81%.




Source: China Business Research Institute


From the demand side, in the past ten years, China's demand for silicone products has been relatively strong, and demand has maintained rapid growth. According to statistics, in 2013-2017, China's apparent consumption of polysiloxane (yield + net imports) reached 980,000 tons, a year-on-year increase of 16%. With the gradual advancement of China's economic transformation, the rapid increase in the income level of residents, and the steady implementation of the national strategy of “Made in China and the “Belt and Road”, it is expected that the consumption of polysiloxane will continue to grow at a medium and high speed, during the period of 2017-2022. Both increased by 8% to 1.45 million tons by 2022. Polysiloxane products are mainly classified into silicone rubber, silicone oil and silicone resin.




Polysiloxane products are mainly classified into silicone rubber, silicone oil and silicone resin. In 2017, the consumption of polysiloxane in China was about 972,000 tons, and the proportion of polysiloxanes consumed in the fields of silicone rubber, silicone oil and silicone resin was as follows:




In 2017, the apparent consumption of polysiloxanes in China was 972,000 tons, of which the largest proportion of consumption was in the fields of construction, electronic appliances, electric power and new energy, medical and personal care. It is expected that in the next five years, in the downstream applications of many silicones, the demand for traditional fields such as construction, power, electrical appliances, textiles, and personal care will grow steadily; the demand for new energy, medical, electronics, and daily necessities will increase. .




More materials and analysis were from the "China's Organic Silicon Industry Market Prospects and Investment Opportunities Research Report for 2018-2023" issued by the China Business Research Institute.