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The silicone industry has become a "great change "​, a new track, what are you thinking about?

September 17, 2021

    In the context of global “carbon neutrality”, the combination of multiple factors such as the surge in green investment, the tight supply caused by the strong demand for raw materials, and the mismatch of upstream and downstream capacity expansion in the industrial chain, have driven the price of organic silicon raw materials to skyrocket. Since the second half of 2021, the price of domestic organic silicon raw materials has soared, hitting a new high in recent decades. At the same time, the share prices of listed companies in the silicone sector have repeatedly hit record highs...

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Faced with the great change, you need to be more rational

    People often use "standing on the great change " to describe the rapid development of an industry, and often use "pigs to fly" to describe the "beings of all beings" trapped in the mud and sand under the tide of the industry. In fact, in the industrial chain relationship of co-prosperity, symbiosis, and interdependence, one party's substantial price increase will inevitably affect the production and operation of the other party and exacerbate the tension between supply and demand in the entire industry chain.

    In the future, with the continuous increase of investment in new energy, as an important part of the national strategic emerging industry and the new material industry, it is also an indispensable supporting material for other strategic emerging industries. The demand for silicone will further increase, and the price may increase. It has been in a high position for a long time. In other words, industrial coordination and adjusting the balance of supply and demand will become a major challenge facing the industry in the long term. In this supply-demand game, if the industry development interests are not the prerequisite, no one can be a winner.

    Behind the soaring prices, putting aside the hustle and bustle of capital and the market, the center of attention should return to the discussion of the sustainable development prospects of the industry. From basic industries to national strategic emerging industries, from independent innovation to today's veritable organic silicon producer, China's organic silicon industry is hard-won and needs a gradual process of perfection and maturity. The high-quality development of the industrial chain needs precipitation, and companies need to jump out of short-term interests, clarify and return to the essence of business, and create real value.

    The more you get to the wind, the more companies will do the right things, the hard things, the long-term things, and the things that take time to accumulate. Only when you sink your heart can you have a chance to cross the storm. Let this industry be less impetuous and more heavy to meet public expectations; let the market be less crazy and more rational, otherwise, once the wind stops, the whole industry chain will be buried after all.

Faced with the great change, you need to stick to a sense of responsibility

    For a normal operating company, everyone hopes to have benefits and profits. Where do the benefits and profits come from? Of course it is cost control, but cost control is not blindly reducing the consumption of raw and auxiliary materials or even reducing the quality of raw and auxiliary materials, not blindly reducing spare parts inventory and equipment maintenance costs, let alone reducing the number of laborers, increasing labor hours, or even reducing Workers’ wages. In the long run, product quality and the sustainable development of the supply chain will inevitably not be guaranteed, and leaving the "quality" to pursue the so-called low "cost" is tantamount to self-destruction!

The great change makes everyone more anxious, but each era has its breakers. They have withstood the baptism of the market and the forging of volatility. Why can they succeed? The standard answer is simple and complex, that is "Sense of Responsibility".

    Perseverance to the sense of responsibility is a self-reflection of the society as a whole. What is needed is that the company is in the current predicament and always adhere to the creation of commercial value and social value. What is needed is stronger corporate innovation and driving capabilities. I hope to find those brands and companies that adhere to the sense of responsibility in the changing tides, and then build a "coordinate system" that adheres to ingenuity and long-termism, so that this kind of respect for love and life, and innovation that have been ignored The continuous pursuit of the company has once again become the universal value of the times.

Faced with the great change, you need to make the right choice

    In the process of our personal development, from ordinary to excellent and outstanding, we are continuously pushing a huge and heavy flywheel. In this process, there is no single thing that determines the effect together, nor will there be lucky mutations and momentary miracles, but there are only clear ideas and unswerving correct choices.

Right now, when "out of stock" and "price increase" become key words in the market,

Maybe you are still thinking, when will the price of organic silicon raw materials rise to the top?

Perhaps you are still thinking about whether the market will gradually return to fundamentals?

Perhaps you are still thinking about how to seize the opportunity in the tremendous changes brought about by this tuyere?

...

No one can say when the price rising will end, but after the price rising, when the market and users should accurately grasp the situation and make the right choice, they must choose.

when "out of stock" and "price increase" become the key words of the market, choosing a supply chain system that is responsible, has common values, has a win-win concept, and has strong technical precipitation will be a win for the company in the harsh market environment. The magic weapon to win the market.

 

The silicone industry has become a new track, what are you thinking about?

When you stand on this new track that has received a lot of attention,

BAIYUN is willing to join hands with colleagues in the silicone industry chain,

Do not forget the original intention, forge ahead!