In recent years, China's organic silicon monomer capacity and output have continued to grow. By the end of 2021, China's methylsiloxane production capacity and production exceeded 60% of the global total, and its consumption exceeded 50% of the global total, and it is still in the stage of rapid development. It is expected that by the end of the "14th Five-Year Plan", the production capacity of silicone monomer in China will exceed 6 million tons/year, accounting for more than 70% of the global production capacity of silicone methyl monomer. However, from the analysis of the import and export status of China's primary form of siloxane, high-end silicone products are still dependent on imports, and the phenomenon of large but not strong still exists.

Capacity continues to rise
During the 13th Five-Year Plan period, China's organic silicon monomer capacity, output and load rate have continued to grow.

According to statistics, from 2012 to 2021, the compound annual growth rate of China's organic silicon monomer production capacity is 6.3%, and the compound growth rate in recent five years is 8%. By the end of 2021, China's organic silicon monomer production capacity reached 3.81 million tons/year, up 15.28% year on year, accounting for about 61.6% of the global organic silicon monomer production capacity.

From 2012 to 2021, the compound annual growth rate of organic silicon monomer production in China is 10.26%, and the compound growth rate in recent 5 years is 8.9%. By the end of 2021, China's production of organosiloxane reached 1.59 million tons, up 18.83 percent year-on-year. In addition, China's organic silicon monomer device load rate continues to rise, the load rate in 2021 as high as nearly 90%.

Based on the known planned expansion and new projects, it is expected that the growth trend of China's organic silicon monomer capacity will continue in the "14th Five-year plan".

According to statistics, in the first quarter of 2022, the successful trial run of the three enterprises will increase the capacity of organosilicon monomer by 700,000 tons/year. There are 13 organosilicone methyl monomer enterprises in China (including foreign enterprises), among which 6 enterprises are expanding and upgrading, with a production capacity of nearly 1.4 million tons per year. According to public information reports, there are at least 15 enterprises in China planning to expand and build new silicone methyl monomer units, of which the planned expansion capacity of nearly 3 million tons/year. It is expected that by the end of the 14th Five-Year Plan, the production capacity of organic silicone methyl monomer in China will exceed 6 million tons/year, accounting for more than 70% of the global production capacity of organic silicone methyl monomer.

The rapid expansion of silicone monomer production is conducive to the balance of the market. In recent years, there is a shortage of supply in the upstream market of silicone, and the price fluctuation is very large, which has a great impact on the downstream industry. With the growth of production capacity, it can not only meet the urgent demand of various industries for silicone products, but also promote the silicone industry to become bigger and stronger.

However, it is worth noting that the investment enthusiasm of silicone monomer is high, and the new and reconstruction and expansion projects continue to increase rapidly. There is the risk of periodic overcapacity, and supply may exceed demand. This should arouse the attention of the manufacturers, control the risk well, and strengthen the innovation research and the development of high-performance product technology of silicone downstream.