Yesterday, the price increase of silica gel, silicone oil and DMC just stopped, but before everyone had time to be happy, another raw material surge was ushered in. As the main raw material of silica gel, fumed silica (also known as fumed silica), the price increased by more than 20% on October 9, and some manufacturers quoted 45,000 yuan/ton. As early as a month ago, when the price of gas silicon was still around 26,000 yuan/ton, we had speculated that gas silicon might usher in a skyrocket. Compared with the price quoted a month ago, the month-on-month increase was 73%, compared with the pre-holiday price. In comparison, the week-on-week increase reached 45%.
The most important user of fumed silica is the silicone industry, of which silicone rubber is the main product. According to SAGSI statistics, in 2020, the amount of gas silicon in the field of silica will account for more than 60% of its total consumption.
The substantial price increase of gas silicon means that the production cost of silica gel is higher, which in turn may push the price of silica gel to rise further.
With the current high prices of raw materials, downstream companies are complaining, and many people are asking why the upstream raw materials are soaring, why don't the downstream pass on the cost? In fact, many downstream products have already adjusted their prices sharply. However, facing the end consumer market, consumers may choose not to buy or use substitutes first when facing the end consumer market. This leads to the problem of difficulty in passing on costs.