Global Organic Industry At Inflection Point And Expected To Turn From Positive To Good

In the past few years, the global silicone industry has fluctuated significantly. Since 2019, the output of raw silicon metal has declined significantly, and the cost side has formed a support, and the price of silicone has been rising, reaching 60,000 yuan/ton by October 2021. After the second half of 2022, the price of global raw silicon iron has fallen, and at the same time, the supply has expanded significantly, and the price of DMC began to fall, and an inversion of raw material price and cost occurred; in 2023, new production capacity continues to be released, global demand is weak, the silicone industry has entered the stage of oversupply, and corporate losses are obvious. 2024, the global silicone market until the end of the main inventory cycle, the spread began to become positive, the inventory began to fluctuate downward, and the industry sentiment is expected to promote a steady marginal improvement.

Demand: With the decline in interest rates in the United States, China, India and other emerging economies, high-speed development, global demand for silicone is expected to continue to repair, in addition, with the subsequent silicone products in all areas of penetration continues to improve, new energy vehicles, photovoltaics, home appliances and other fields to maintain rapid growth, is expected to continue to boost demand for silicone.

Supply side: By the end of 2023, China's overseas production capacity of silicone monomer was 2.05 million tons/year, accounting for 26.4% of the world's production capacity. In 2024, China's production capacity of silicone monomer will reach 6.38 million tons/year, with a high degree of concentration in the industry, and the expansion cycle has entered the end.

BocoTech New Materials Co., Ltd. is mainly engaged in the production of new silicone materials, pesticides and rubber products. Its products are widely used in the fields of chemicals, coatings, plastics, cosmetics, new energy vehicles, pesticides, etc. Relying on the relevant products produced in the parent company's factories and associated enterprises to carry out foreign trade, BocoTech has won a good business reputation over the years of development, with profound technical strength in the industry and strong ability to integrate resources.