Imported Silicone Oil Surges, Silicone Sealant Enterprises Fo
Imported Silicone Oil Surges, Silicone Sealant Enterprises Follow Up with Price Hikes
Core Keywords: imported silicone oil, 2000 RMB/ton increase, silicone sealant, 5%-10% price hike, cost transmission, profit pressure
Core Sentence: Imported silicone oil prices surged by 2000 RMB/ton on March 26, driving domestic silicone sealant enterprises to follow up with 5%-10% price hikes,
but weak terminal demand limited the smooth transmission of cost pressure.
On March 26, the quotation of imported silicone oil in the domestic market increased sharply by about 2,000 RMB/ton, following the global price hike trend of international silicone giants such as Dow Chemical and Wacker Chemie. At the same time, the prices of key auxiliary materials such as fumed silica and crosslinking agents also rose synchronously, further increasing the production cost pressure of downstream silicone sealant enterprises. In response to the continuous rise in upstream costs, many domestic silicone sealant manufacturers have successively issued price adjustment notices, with a price increase range of 5%–10% for their main products, covering architectural sealants, industrial adhesives, and other categories.
However, the transmission of price hikes to the terminal market is relatively slow. Market research shows that the current downstream terminal demand is still weak, especially in the construction sector, where the start-up rate of projects is lower than expected, leading to insufficient willingness of terminal buyers to accept price increases. This has put small and medium-sized silicone sealant enterprises in a difficult position: on the one hand, they are facing the pressure of rising upstream costs, and on the other hand, they are unable to fully pass on the cost pressure to terminal customers, resulting in further compression of profit margins. Industry insiders predict that with the continuous price hikes of international silicone products and the tightening of domestic supply, more sealant enterprises will join the price adjustment ranks in the next week, but the extent of price hikes may be limited by terminal demand.
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