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1. Development status of the industry

Silicone products are widely used in a wide range of fields. The output of a single brand of silicone products in each category is relatively small, and the users are relatively scattered, forming an industry characteristic of centralized production of monomers and decentralized downstream processing. Take Dow Corning, the world’s largest organosilicon company, as an example. None of its organosilicon products or customers account for more than 3% of its sales. None of the silicone businesses such as Tianhui Materials, Tianhui New Materials and Tianci Materials has a product or customer that accounts for more than 5% of its sales. This feature determines that the technical service of the silicone industry is very strong, and the company’s operation is based on customer needs to continuously develop new products. After the formation of a new market, enterprises and customers tend to form a relatively stable relationship, thus forming new technology application barriers. Due to the difficulty in research and development of silicone high-end products and high technical barriers, the industry boom is longer than that of general industries.

2. Industrial integration

At present, major silicone manufacturers in the world adopt the integrated production mode of upstream and downstream, that is, while engaged in the large-scale production of silicone monomers, they also produce silicone oil, silicone rubber and other silicone deep-processing products. In China, only a few companies such as Xingxin Materials, Xin’an Chemical, and Hongda New Materials have formed a complete industrial chain. For the domestic organic silicon industry, organic silicon monomer production enterprises extend to downstream organic silicon products and organic silicon product production enterprises Extending to the upstream silicone monomer is the development trend of the industry.

3. Increased industry concentration

With the demand fluctuations caused by industrial structure adjustment, the concentration and transfer of production capacity caused by market competition, and the production reduction caused by safety and environmental protection factors, the production of individual siloxane products has shown a clear trend of concentration in leading enterprises, and the growth rate of production capacity Significantly slowed down, the number of enterprises generally showed a decreasing trend, and the scale of equipment and the level of automation increased.

According to different downstream industries, the silicone oil industry is currently affected by the sluggish demand in the textile industry and the safety crisis of silicone oil in the daily chemical industry. The overall demand has slowed down, squeezing the market capacity of the originally large number of small and medium-sized enterprises, and the market restructuring process has accelerated. . The market demand for liquid glue is scattered but growing rapidly. There are many small and medium-sized enterprises emerging in South China and East China, and the production is booming. After years of development in the high-temperature adhesive and liquid adhesive market, leading companies have emerged, and the competition among leading companies for market dominance has intensified, and a large number of small and medium-sized enterprises have gradually been marginalized due to cost and quality reasons.

4. The market size of the industry

Organosilicon is a new type of polymer synthetic material. Because of its high and low temperature resistance, weather aging resistance, electrical insulation, and physiological inertia, it is widely used in many technological fields and occupies an important industrial position in the national economy and people’s livelihood. Silicone rubber is a deep-processed product made of organic silicon, and it is also the deep-processed product with the largest output at present, accounting for 60-70% of the deep-processed products of silicone. The consumption level of silicone products is closely related to the level of economic development. The United States is the largest consumer of silicone products in the world, accounting for about 35% of the global silicone product market, followed by Europe with about 33%, and Japan with about 15%. Due to the difference in industrial structure, there are certain differences in the consumption structure of organic silicon in various countries in the world. Although the silicone rubber market in developed countries is relatively mature, with the continuous development of new uses, the consumption of silicone rubber will continue to grow at a relatively rapid rate in the future.