Analysis on the market Prospect of organosilicon industry: its application scope is constantly expanding

The special composition and molecular structure of organosilicone integrates the properties of organic matter and the functions of inorganic matter, and the unique molecular structure endows the organosilicone with superior properties.

With the continuous development of organosilicone deep-processed products, its application scenarios are gradually broadened. In addition, with the demand potential of per capita consumption of organosilicone, the consumption of organosilicone will maintain a trend of rapid growth.

Organic silicon has excellent properties, various forms and wide applications

Organosilicon, or organosilicon compounds, refers to a large class of compounds containing SI-C bonds, and at least one organic group is directly connected to silicon atoms, including various small molecular compounds and high molecular polymers.

The basic structural units of organosilicon materials are composed of Si-O-Si chains, and the side chains are connected with other organic groups through silicon atoms. Therefore, the structure of organosilicone products contains both “organic groups” and “inorganic structures”. Such special composition and molecular structure make it integrate the characteristics of organic substances and the functions of inorganic substances, and the unique molecular structure gives the organosilicone materials superior properties.

Due to its excellent performance, organosilicone material can be widely used in many fields. Meanwhile, due to its special molecular structure, it is also endowed with extensive designability and can develop a variety of high-performance products to meet the personalized needs of different industries.

At present, the application scope of organosilicone materials has been gradually expanded from the initial national defense and military fields to construction, electric power, electronic appliances, automobile, textile, personal care and other fields. At the same time in aerospace, new materials, new energy, biomedical, electronic information and other strategic emerging industries and sustainable development of traditional areas of support more and more obvious, modern industry and daily life has become an indispensable high-performance materials.

The production capacity and output of organic silicon industry are constantly improving

In organosilicone, the polysiloxane composed of siloxane bond skeleton accounts for more than 90% of the total amount. In the narrow sense, organosilicone mainly refers to polysiloxane.

According to the statistics of SAGSI, by the end of 2018, there were 13 methyl monomers (including Dow – Wak Zhangjiagang plant) in China, with a total polysiloxane production capacity of 1.415 million tons/year (at the production capacity of 1.307 million tons/year). Polysiloxane production capacity in 2019 is 1.423 million tons/year.

In terms of production, according to the statistics of SAGSI, China’s polysiloxane production increased continuously from 2010 to 2019, and in 2019, China’s polysiloxane production reached 1.180 million tons, with a year-on-year growth of 4.42%.

Overcapacity is gradually digested industry capacity utilization rate is rising

From 2008 to 2010, the rapid expansion of domestic silicone new projects, the explosive growth of industrial capacity, coupled with the large gap between the technological level of domestic enterprises and foreign enterprises, led to the low utilization rate of the overall industrial capacity during the period of 2008 to 2010.

After 2010, with the gradual digestion of excess capacity, industrial technological progress and the improvement of enterprise process management level, the industrial capacity utilization rate as a whole presents an upward trend.

Based on the production and production capacity of polysiloxane according to SAGSI statistics, the production capacity utilization rate of polysiloxane in China fluctuates and rises from 2010 to 2019. In 2019, the production capacity utilization rate of polysiloxane reaches 82.92%.

There is still much room for improvement in per capita consumption of organic silicon

According to the wacker annual report of Germany, per capita consumption of organosilicone is positively correlated with per capita GDP level, and the growth of demand for organosilicone in low-income countries is more resilient to income growth

At present, the per capita consumption of organic silicon in China is about 0.7kg, while that in Europe, the United States, Japan and other developed countries and regions is close to 2.0kg. There is still a lot of room for improvement in the per capita consumption of organic silicon in China. In the future, China’s polysiloxane consumption will continue to grow at a medium-high speed thanks to the continuous expansion of the application range of organosilicone and the huge demand potential.

SAGSI expects China’s polysiloxane consumption to continue to grow at a medium-high rate, reaching 1.56 million tons by 2023. On this basis, it is further predicted that China’s polysiloxane consumption will reach about 1.87 million tons by 2025.