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Increase in market demand The number of start-up projects The current domestic major organic silicon producers are Blue Star Chemical New Material Co., Ltd., Xinan Chemical Group Co., Ltd., Jilin Chemical Group Co., Ltd., and Jiangsu Meilan Chemical Group Co., Ltd. and other domestic companies and Dow Corning. Companies, Meitu Advanced Materials Group, Wacker Chemie AG, Japan Shin-Etsu Chemical Co., Ltd. and other multinational companies. According to Mei Shengfang, the overall performance of the domestic silicone market in the first half of the year was good. Xinan Chemical Group Co., Ltd. recently released a mid-year report showing that the company's main business income in the first half of 2007 reached 1.616 billion yuan, an increase of 10.65%; a net profit of 191 million yuan, an increase of 52.38%. Mei Shengfang predicted that with the increase in demand, the organic silicon industry is expected to continue the current good situation in the second half.
In the first half of the year, the high prosperity of the silicone industry was mainly due to the high price of organic silicon intermediates DMC, which remained at a high level of 2.6 to 30,000 yuan/ton. At the same time, the prices of the main silicone raw materials did not rise simultaneously, and the prices of methanol and hydrochloric acid also fell.
The prosperity of the market has increased the confidence of companies entering the industry. On July 31, Xinan Chemical Group Co., Ltd. and the US Motuo High-tech Materials Group jointly announced that the two companies invested 100 million U.S. dollars in organic silicon monomer projects. It is reported that the newly established joint venture will build a 100,000-ton/year silicone monomer project. A joint venture between Dow Corning and WACKER in Zhangjiagang, the world’s leading silicone giant, is expected to reach 400,000 tons/year of organic silicon production capacity by 2010. The company will build and develop raw materials, intermediates, and downstream products. And sales of integrated silicone product chain. In addition, the Bluestar Group acquired the 200,000-ton/year organosilicon monomer project after the acquisition of the Silicone Division of the French company Rhodia, and the 200,000-ton/year organosilicon project of Shandong Dongyue Group and Shandong Jinling. The Group's 100,000-ton/year organic silicon project is also in planning and construction. According to the current construction speed, by 2010 domestic organic silicon production will reach 1.5 million to 1.7 million tons.
Innovating and Attracting Growth with Expanded Space According to Mei Shengfang, the gap between the technological level of the domestic silicone industry and the international giants is gradually narrowing, but the pace of technological innovation needs to be accelerated. There are nearly 10,000 kinds of products in the downstream of the global silicone, and currently only a few hundred kinds can be produced in China. In addition, the global average selling price per ton of silicone monomer is about 4 million yuan, while the sales price of organic silicon monomer per ton in China is only about 13,000 yuan, which fully shows that the technological gap between Chinese and foreign organic silicon products is still large. With the acceleration of domestic technological innovation, especially after the acquisition of Rhodia by Bluestar, it is possible to make full use of Rhodia's technological advantages. Xinan Chemical's cooperation with Momentive will also introduce its advanced monomer production technology. Will slowly shrink.
The application of organic silicon products in China is still low. In 2006, the global per capita consumption of organic silicon products was US$1.5/year, the per capita consumption of organic silicon products in the Americas was US$4.5 per year, the per capita consumption of organic silicon products in Europe was US$4.3 per year, and China’s current per capita consumption of organic silicon was The amount is only 0.75 US dollars / year. The average per capita consumption of organic silicon products in China is 1/2 of the global average and 1/6 of that in developed countries. At the same time, the global silicone market has exceeded US$10 billion. It is expected that organic silicon, which plays an important role in various fields of the national economy, will have ample room for growth in the coming years.
Accelerate downstream development and pay attention to investment risks Although the revenue of silicone of Bluestar Chemicals and Xinan Chemicals has doubled in three years, but with the increase of organic silicon production capacity, the silicone industry will face a new competitive landscape in the second half of the year and further develop the downstream The market is the industry's sustainable development. In the absence of downstream development of high-tech products, silicones will face the risk of falling prices and falling profits. In addition, the added value of organic silicon products in domestic companies is generally low, product quality needs to be improved, and applications need to be further promoted. The better organic silicon downstream companies in China are mainly based on imported organic silicon monomers, and the gross profit rate is about 15%. Constrained by the backwardness of monomer production, the downstream products produced by domestic silicone monomer companies have lower gross margins than downstream companies that import monomer.
At present, Xinan has developed polyether-modified silicone oil products. The Transco shares and Demei Chemical also have unique advantages in the development of silicone textile auxiliaries. In terms of deep processing of silicon rubber, prefabricated and cold-shrinkable cable accessory products based on silicon rubber have obvious safety performance in addition to their superiority in high-voltage products, and will gradually replace the traditional heat-shrinkable power cable accessories. market. Shenzhen Changyuan New Material Co., Ltd. and newly listed Shenzhen Volvo Nuclear Material Co., Ltd. are worth looking forward to in this area.
Mei Shengfang finally stressed the investment risks of the silicone industry. He said that the silicone industry must prevent blind construction from causing excess capacity and affect the market. In addition, the silicone industry has a high barrier to entry and belongs to a technology-intensive industry. Enterprises must also enter carefully.
Silicone Industry: The market is surging and the industry continues to grow
In recent years, the organosilicon industry in China has developed rapidly. According to statistics, from 2000 to 2006, the apparent consumption of the organic silicon market in China grew at an average rate of more than 30% per year, making it the fastest growing organic silicon market in the world. In the first half of 2007, the silicone market was also surging. On May 21st, the organic silicon device of Zhejiang Hesheng Chemical Co., Ltd. exploded in the trial production process due to immature technology and design. The explosion has fully proved the high barriers to entry for the silicone industry. On June 11, from Shandong Dongyue Group, the group's silicone first phase project, the 60,000-ton/year organic silicon project, will be put into operation in October this year. On the one hand, it is the rapid growth of the market and the increase in new projects. On the one hand, barriers to entry are high. This shows that the risks and opportunities of the silicone industry coexist. What is the trend of the domestic silicone industry in the second half of the year? The reporter interviewed Mei Shengfang, secretary general of China Fluorosilicone Organic Material Industry Association.