China Business Information Network: Organic silicon, that is, organic silicon compounds, refers to compounds containing Si-C bonds and at least one organic group is directly connected to the silicon atom. It is customary to pass those through oxygen, sulfur, nitrogen, etc. A compound that connects an organic group with a silicon atom is also referred to as an organic silicon compound. Among them, polysiloxanes with a silicon-oxygen bond (-Si-O-Si-) as the skeleton are among the most organosilicon compounds, the most researched and widely used, accounting for more than 90% of the total amount .


Organic silicon production capacity and output


In the past ten years, the trend of the global shift of organic silicon production capacity to China has been obvious. China has become a large country in the production and consumption of organic silicon. The advantages of domestic organic silicon products have become increasingly prominent, and the import substitution effect has been significant. According to SAGSI statistics, as of 2018, China has a total of 13 methyl monomer production enterprises (including the Dow-Wacker Zhangjiagang plant), with a total silicone production capacity of 1.42 million tons / year (in production capacity of 1.307 million tons / year ), The output was 1.13 million tons, a year-on-year increase of 2.83% and 10.68%, and the average annual compound growth rates of 2008-2018 were 19.41% and 19.21%, respectively, and the industry has developed rapidly. According to SAGSI's forecast, China's total polysiloxane production capacity will reach 1.96 million tons per year and output will reach 1.7 million tons in 2023. The average annual growth rates during 2018-2023 will be 6.73% and 8.51%, respectively.


Data source: SAGSI, China Business Industry Research Institute


From 2008 to 2010, the rapid expansion of China's organic silicon new projects, the industry's production capacity has exploded, coupled with the large gap between domestic companies' technological level and foreign countries, leading to a significant decline in the industry's capacity utilization during the period. Since then, domestic production capacity has entered a modest expansion phase. With the gradual digestion of excess production capacity, the advancement of industry technology, and the improvement of enterprise process management, the industry's capacity utilization rate has continued to rise. As of 2018, China's polysiloxane capacity utilization rate reached 80%, an increase of 6 percentage points from 2017, and the highest level in nearly a decade. It is expected that by 2023, China's polysiloxane capacity utilization rate will further increase to 87%.