Производители силикона поднимают цены на сырье
Цены на силиконовые продукты растут по всей отрасли с прошлого года, а Wacker A.G., Elkem Silicones и Shin-Etsu Chemical Co. повышают цены на некоторые продукты. Momentive Performance Materials Inc. и Sun Chemical Corp. объявили о повышении цен с 15 февраля на 2018 год. В каждом из ценовых повышений указано увеличение издержек на сырье как одна из причин.
31 августа 2018
Market forces tighten silicone sector supply, spike prices………….
Silicone product prices have been going up across the industry since last year, with Wacker A.G., Elkem Silicones and Shin-Etsu Chemical Co. raising prices for some products. Momentive Performance Materials Inc. and Sun Chemical Corp. announced price increases for 2018 so far. Each of the price increases listed increases in raw materials costs as one of the reasons.
Multiple sources said all major manufacturers and distributors have put out price hike notices. Among the top suppliers, officials from DowDuPont declined comment, Momentive referred to its 2017 financial report and Wacker didn't respond to a request for further comment.
"We're getting customers who are getting price increases of 15-30 percent. They're getting hammered," said Sharp.
Ken Kemerer, chief operating officer for ICM Silicones Group, said there have been dramatic price increases for raw materials, which has a particular impact on ICM, but they have been able to maintain supply.
"It starts with raw materials, which is the easiest for the major manufacturers to increase," Kemerer said. "But they also have been increasing their downstream value-added products."
Bishop said that Shin-Etsu also is getting pricing pressures from its suppliers.
Supply also has been difficult to keep steady, as plant shutdowns in recent years have impacted raw silicone availability. Momentive shut down silicone production at its Leverkusen, Germany, facility. A strike at its Waterford, N.Y., facility in late 2016 and lasting into 2017 further disrupted supply.
Bishop said some manufacturers in China are being forced to shut down at least temporarily because of China's environmental rules for air quality, which impacts everything downstream, including silicone.
Another major contributing factor has been a U.S. antidumping case against imported Chinese silicon metal, according to Jeff Furbish, marketing specialist for First Continental. FCI used to import silicon metal until the antidumping case put tariffs on the material, effectively more than doubling the price.
Heden said he understands the need for American manufacturing to be a prosperous industry. But the reality is that with a material such as silicon, where 60 percent of the global supply comes from China, the tariffs can hurt U.S. manufacturers.
"America should be hesitant to put tariffs on those types of upstream raw materials, because in order to compete in a global market, you need to be getting the raw materials from where the rest of the world is getting them," he said.
Tightening Chinese regulations play a part in throttling silicone supply worldwide, Furst said.
"China produces much of the world's silicon metal, and supply has been restricted over the past year by environmental regulations," he said. "This has driven up prices for silicon metal, and in turn is squeezing margins and limiting supply for silicones."
Kemerer said what's unique about the situation today is the inability of other regions to supply areas that are short.
"In the past, when there was a capacity issue or production issue from a major manufacturer in the U.S., there was excess capacity in other regions," he said. "The shortage was minimized because the volumes would shift to relieve the pressure."
Additionally, producers have held off on increasing capacity until recently, as "overcapacity was seen as a potential problem only a few years ago, when suppliers from China were rapidly raising capacity," Furst said.
http://www.rubbernews.com/article/20180430/NEWS/180439993/market-forces-tighten-silicone-sector-supp...
Silicone product prices have been going up across the industry since last year, with Wacker A.G., Elkem Silicones and Shin-Etsu Chemical Co. raising prices for some products. Momentive Performance Materials Inc. and Sun Chemical Corp. announced price increases for 2018 so far. Each of the price increases listed increases in raw materials costs as one of the reasons.
Multiple sources said all major manufacturers and distributors have put out price hike notices. Among the top suppliers, officials from DowDuPont declined comment, Momentive referred to its 2017 financial report and Wacker didn't respond to a request for further comment.
"We're getting customers who are getting price increases of 15-30 percent. They're getting hammered," said Sharp.
Ken Kemerer, chief operating officer for ICM Silicones Group, said there have been dramatic price increases for raw materials, which has a particular impact on ICM, but they have been able to maintain supply.
"It starts with raw materials, which is the easiest for the major manufacturers to increase," Kemerer said. "But they also have been increasing their downstream value-added products."
Bishop said that Shin-Etsu also is getting pricing pressures from its suppliers.
Supply also has been difficult to keep steady, as plant shutdowns in recent years have impacted raw silicone availability. Momentive shut down silicone production at its Leverkusen, Germany, facility. A strike at its Waterford, N.Y., facility in late 2016 and lasting into 2017 further disrupted supply.
Bishop said some manufacturers in China are being forced to shut down at least temporarily because of China's environmental rules for air quality, which impacts everything downstream, including silicone.
Another major contributing factor has been a U.S. antidumping case against imported Chinese silicon metal, according to Jeff Furbish, marketing specialist for First Continental. FCI used to import silicon metal until the antidumping case put tariffs on the material, effectively more than doubling the price.
Heden said he understands the need for American manufacturing to be a prosperous industry. But the reality is that with a material such as silicon, where 60 percent of the global supply comes from China, the tariffs can hurt U.S. manufacturers.
"America should be hesitant to put tariffs on those types of upstream raw materials, because in order to compete in a global market, you need to be getting the raw materials from where the rest of the world is getting them," he said.
Tightening Chinese regulations play a part in throttling silicone supply worldwide, Furst said.
"China produces much of the world's silicon metal, and supply has been restricted over the past year by environmental regulations," he said. "This has driven up prices for silicon metal, and in turn is squeezing margins and limiting supply for silicones."
Kemerer said what's unique about the situation today is the inability of other regions to supply areas that are short.
"In the past, when there was a capacity issue or production issue from a major manufacturer in the U.S., there was excess capacity in other regions," he said. "The shortage was minimized because the volumes would shift to relieve the pressure."
Additionally, producers have held off on increasing capacity until recently, as "overcapacity was seen as a potential problem only a few years ago, when suppliers from China were rapidly raising capacity," Furst said.
http://www.rubbernews.com/article/20180430/NEWS/180439993/market-forces-tighten-silicone-sector-supp...