According to industry media reports on November 1, the silicone business unit of international chemical giant WACKER Chemical Group recently announced that its silicone rubber sales in Europe, the Middle East and South America will increase by 40%. The reason is that energy and labor costs lead to increasing production costs, and the price adjustment will take effect from November 1. The products offered by WACKER's Silicones business are mainly used in automotive, construction and medical technology.


It is reported that China has become the world's largest consumer of tires, as well as the largest tire producer and exporter. As the upstream of automobile tires, its main raw materials are natural rubber and synthetic rubber. 80% of China's natural rubber relies on imports, and the main raw material of synthetic rubber is oil. Faced with this situation, the application of non-petroleum silicone rubber to the tire industry has important strategic significance for China.


According to the industry, the domestic organic silicon DMC market price has accelerated in the near future, and the quotation refers to the 20,000 yuan / ton mark. From the perspective of corporate inventory, DMC prices may fall below the 20,000 mark. The prices of DMC and other products have dropped back, and the production costs of downstream companies such as silicone rubber and resin will significantly decrease, and the industry's profits are expected to pick up. The international giant silicone rubber has raised its prices significantly, and the industry will usher in the dual benefits of cost reduction and product price increases. The fundamentals of the industry are expected to reverse and related companies are expected to benefit.


In terms of related companies, according to the selected stocks of the theme library (xuangubao.cn) silicone,


Chenhua Co., Ltd. has a capacity of 8,500 tons of silicone rubber, and is a domestic leader in segmentation.


Silicon treasure technology company is mainly engaged in the research and development, production, sales of silicone room temperature rubber and special production equipment for rubber production; the leading company of silicone room temperature rubber, launched the world's first silicone rubber automotive tire.


Hongda New Materials is mainly engaged in the research, production and sales of high temperature silicone rubber products.


* Disclaimer: The content of this article is for reference only and does not constitute investment advice