The main reason for the soaring raw materials in silicone is that DMC, as an important organic compound, is a limited resource and a dangerous chemical raw material, which is expensive. Due to the second outbreak of foreign epidemic, many foreign orders turned to domestic factories, and domestic production capacity could not be improved, resulting in unbalanced technology, soaring prices and serious inflation in the United States. Foreign companies manipulate commodity prices through the futures market, resulting in high raw material prices in silicone.
Another most important reason is that I am currently in China. Stop production and limit production.
The National Development and Reform Commission issued the Plan of Improving the Dual Control of Energy Consumption Intensity and Total Amount. The main purpose of this document is to curb the excessive growth of energy consumption in energy-intensive industries, but enterprises in many provinces have the problem of "double high", that is, high energy consumption and high emissions. Therefore, in order to control the progress of energy consumption, many provinces have stopped production and limited production, and the most direct way to make these enterprises with high energy consumption and high emissions obey is to limit electricity.
Affected by the epidemic, many domestic enterprises are basically full of export orders, especially these high-energy-consuming enterprises. Now all countries in the world are using China's resources to pollute China's environment to meet their own needs. With the sharp rise of raw materials, high energy consumption of resources, high emission of pollutants, unstable market order and compressed profit space, the state has put forward a dual control scheme of energy consumption to ensure the healthy and sustainable development of enterprises.
It is one thing to protect the environment, but it is more important to guard against the upcoming unknown risks, so even if we know that the implementation of dual control of energy consumption will have a great impact, we must do it.
Therefore, the price of silicone rubber is unlikely to fall in the short term, and the price will continue to rise. If the epidemic does not end, the price will not fall.