The development trend of silicone industry

2024-10-31127
Firstly, due to limited development time, experience accumulation and technological innovation are greatly restricted, and the overall quality of the domestic silicone industry lags behind that of foreign countries. Most of the products currently produced domestically can basically meet the production requirements of their customers, but in cases where customers require very high performance or special adhesive types, imported adhesive still needs to be used. There is a significant gap in the domestic market for special and high-performance adhesives. Secondly, due to the fact that the silicone industry is a capital intensive industry, the current economic situation also determines the severity of its survival environment, with difficulties in capital flow, serious product homogenization, and constantly rising raw material prices, the survival of enterprises has been greatly challenged. In addition, a vicious cycle of price wars is gradually forming within the silicone rubber industry, with some manufacturers targeting mid to low end customers and continuously lowering prices, resulting in a shrinking profit margin for the entire industry.

From another perspective, the prospects of the silicone industry are still promising. The silicone industry is a capital intensive and high-tech industry, which will have better development momentum compared to labor-intensive industries. Silicone raw materials are mainly used in major industries such as electronics, medical equipment, and baby products, with a wide range of involvement. Many products that used to be made of rubber will gradually be replaced by silicone. The development trend of silicone rubber in 2012 will focus on liquid rubber. Xin'an Tianyu has invested 50 million yuan to establish a liquid rubber production base, which will also change the current pattern of the silicone rubber industry to a certain extent. At the same time, we should also be aware of the fierce competition within the silicone rubber industry. Due to the economic downturn and corresponding monetary policies, the flow of funds for small and medium-sized enterprises is even more difficult, which is a challenge for a capital intensive industry. However, if we can survive such an economic winter, the future of the silicone rubber industry will be very bright. From a product perspective, the demand in the domestic silicone rubber industry is still for ordinary and gas-phase adhesives. At the same time, the demand for special adhesives such as flame retardant adhesives, low alcohol adhesives, and liquid adhesives is constantly increasing. These adhesives have high technological content and added value compared to the previous two conventional adhesives, so these types will have great market space in the future.