In the chemical industry, the market for fluorosilicone chemicals is undergoing profound changes and showing unique development trends.
Gradually Stable Production Capacity
In terms of silicone production capacity, during the period from 2019 to 2024, the domestic production capacity of silicone DMC surged from 1.515 million tons per year to 3.44 million tons per year. However, the subsequent new production capacity is extremely limited. Currently, only Inner Mongolia Xingfa Technology Co., Ltd. plans to build a 100,000 - ton/year project, which is expected to be completed and put into production in June 2025. This means that the pace of silicone production capacity expansion has significantly slowed down, and the market will gradually transition from a stage of rapid production capacity growth to a relatively stable stage. For fluorosilicone chemicals, the stability of silicone production capacity is an important foundation for their market development, which helps to stabilize the raw material supply and reduce market instability factors caused by large - scale fluctuations in production capacity.
Prospect of Price and Profit Restoration
Since the second half of 2024, the price of domestic silicone has fluctuated steadily and is at a historical low level, and the corresponding gross profit is still in a loss state. However, with the limitation of new production capacity on the supply side and the gradual recovery of demand on the demand side, the room for further price decline of silicone is extremely limited, and the profit situation is expected to be repaired. As a sub - field of silicone, the price trend of fluorosilicone chemicals is often closely linked to the overall silicone market. When the price and profit of silicone recover, fluorosilicone chemicals will also benefit, and the profitability of their production enterprises will also be improved, which will inject impetus into the sustainable development of the industry.
Diversified Growth in Demand
Stable Demand in Traditional Fields
In the traditional construction field, although the prosperity of the construction industry has declined, since the second half of 2024, central and local policies have continued to be intensified. This makes the market space for silicone sealing materials in the construction field expected to be further expanded, and the market share of high - end construction sealants will also increase accordingly. Fluorosilicone chemicals have unique advantages in construction sealing materials due to their excellent properties such as weather resistance and chemical corrosion resistance. They will usher in a broader market with the increasing demand for high - performance materials in the construction field.
Burst of Demand in Emerging Fields
With the rapid development of emerging industries such as photovoltaics and new energy vehicles, the demand for silicone materials has shown explosive growth. Taking the photovoltaic industry as an example, silicone materials are indispensable in the encapsulation and frame sealing of photovoltaic modules; components such as batteries, motors, and interiors of new energy vehicles also use a large amount of silicone materials. Due to their special chemical structure, fluorosilicone chemicals perform excellently in meeting the high - performance requirements of materials in emerging industries. Their application prospects in fields such as photovoltaics and new energy vehicles are very broad, and the market demand will continue to grow rapidly.
In summary, driven by stable production capacity, price and profit restoration, and diversified growth in demand, the fluorosilicone chemical market is moving towards a new development stage and is full of opportunities in the future. For the subsequent market development, continuous attention needs to be paid to policy changes, technological innovation, and the coordinated development of upstream and downstream industries to better grasp the market dynamics.
