Organic Silicon | Understand the development status of global organosilicon industry!


Half of the year has passed in 2019, and the silicone industry is facing the ever-changing rising tide of prices, and 2018 is a year of dramatic price fluctuations and excitement for silicone. What is the status quo of the development of the organic silicon industry?


Since the 1990s, the global organosilicon industry has developed rapidly. The increment of global polysiloxane production capacity mainly comes from China. Influenced by raw materials, costs and market factors, overseas production capacity growth is slow. At present, the global production capacity of polysiloxane is mainly concentrated in China, as well as developed countries and regions such as Western Europe, North America, Japan and South Korea.


In the future, China's polysiloxane production capacity still has many new plans, the global polysiloxane production will increase from 2 million tons to 2.15 million tons in 2017-2018! The global production of polysiloxane is expected to reach 2.5 million tons in 2022.


From 2017 to 2018, the global production capacity of polysiloxane increased from 2.5 million tons per year to 2.67 million tons per year. From the perspective of productivity utilization, it maintained between 70% and 80%, and the productivity utilization rate was relatively high.


1. Global Silicone Consumption Maintains Rapid Growth


Silicone is a new high-performance material. Due to the wide demand downstream, the growth rate of demand for silicone has been higher than the global growth rate of GDP. Statistical data show that global silicone demand composite growth rate is about 5%, while the IMF (International Monetary Fund) global GDP growth rate is only 3.55% in the same period.


There are two main reasons for the growth of Silicone Market in the future.


First, silicone has shown its superior performance and played a role in more and more broad areas. The consumption demand of silicone in new materials, biomedical, new energy, high-end equipment manufacturing and daily necessities has maintained rapid growth. Taking silicone liquid gel as an example, the application of this product in medical devices will promote the further growth of the global demand for this product.


The second reason is related to the rapid growth of demand in emerging markets such as Asia-Pacific, Middle East and Africa. The per capita GDP of emerging market countries is low, and the per capita consumption of silicone still has a big gap and growth prospects compared with developed countries, which will greatly increase the market demand for silicone.


2. Emerging market countries still have huge demand potential


Statistics show that the per capita consumption of silicone is basically proportional to the per capita GDP level, and the growth of silicone demand in low-income countries has greater elasticity to income growth. At present, the per capita organic silicon consumption in China and other emerging market countries is less than 1 kg, while in developed countries and regions such as Western Europe, North America, Japan and South Korea, it is nearly 2 kg.


With the development of economy in the future, the consumption demand of silicone in emerging market countries still has tremendous growth potential. The Asian market represented by China and India has a large population base and low per capita consumption. In the future, it will become the main growth region of silicone demand in the world.


Source: China Business Industry Research Institute