In addition to the epidemic in 2021, you will never forget, the rapid growth of silicone prices is also amazing. 30-60 yuan, the price hit a record high in just two months. In 2021, the market price of organic silicon significantly exceeded the highest price in history ten years ago, with the annual average price rising 88.6% year on year. Domestic experts believe that the core driving force is the growth of domestic demand, which has reached a record high, and foreign demand, which has increased by 20% due to the suspension of foreign brands due to the epidemic. Domestic demand in polysilicon significantly lead, silicone (silicone oil, silicone, etc.) to maintain the largest terminal application market.
But why is demand exceeding supply?
The main reason is that the silicone market has no scale increment in the past two years under the background of low prosperity, coupled with the late arrival of the water season, as well as the policy requirements, energy consumption double control policy led to the production limit in southwest China, and the supply of silicone in the second half of 2021 was in short supply, which also created the high unit price in the history of the silicone industry.


But in the first half of 2022, with the russia-Ukraine conflict, the impact on the world. It also indirectly leads to the fluctuation of China's silicone market and the change of exchange rate. Since May, with the devaluation of RMB, the export has also increased. However, the closed port of Shanghai, as well as the congestion of major ports in the north and south, are still a huge challenge to the export of foreign traders.


With The arrival of June 2022, the second half of this year has also begun. At present, there are too many influencing factors, so it is difficult to predict the market trend of China's silicone market after the opening of Shanghai port and the stabilization of exchange rate.