The price of raw materials has risen sharply in China

In this year, the raw materials price of silicone sealants has been rose dramatically. It’s effect a lot for the silicone sealant factories and customers. According to estimated data, year-to-date, the price increase of raw materials has exceeded the price increase of DMC. Although the profit margin of DMC production in the first half of the year was nearly 50%, the profit margin has been declining recently as the price of raw materials has risen sharply. Inventory is small, so purchase is difficult.

Above is the price trend of DMC since May to date, The price of raw materials has risen sharply and has been increased more than 150%. In recent days, all products have risen to very high prices, and there is greater resistance from the downstream. In addition, the price of silicon metal has stabilized, monomer factories and traders are more willing to ship, and market sources have increased. With the exception of individual products, Everyone can at least buy the goods, but the price is still high, and some downstream customers can no longer afford it. Based on the current market conditions, it is expected that prices will remain stable at a high level in the short term. If other manufacturers of silicon metal follow to increase in the later period, it is likely that another wave of price increases will be set off.