According to the latest industry monitoring report released by the National Strategic Alliance for Green Development of Silicon Industry (SAGSI), the total production capacity of China's organosilicon monomer production enterprises reached 1.35 million tons/year (polysiloxane), and the average operating rate was 61.9%, down by 2.5 percentage points year-on-year. From the rate of operation, siloxane monomer overcapacity seems to be very serious.

If analyzed from the downstream product layout, the siloxane overcapacity rate in China is only 10%, as shown in Table 1. The statistical rate of production capacity of each downstream product in the table is basically above 95%, and the production capacity of other consumption siloxane monomers except for the three categories of silicone rubber, silicone oil and silicone resin is not counted. In this case, excess siloxane monomer capacity is 119,900 tons/year. If the downstream capacity is more comprehensive statistics, even counting the capacity of the shutdown device and the capacity of the device under construction and about to be put into production, it is estimated that the excess capacity of siloxane monomer in China will not exceed 5%.

From the perspective of different downstream industries, the silicone oil industry is currently affected by the sluggish demand of the textile industry and the safety wave of the silicone oil in the daily chemical industry. The overall demand slows down, squeezing the market capacity of the originally large number of small and medium-sized enterprises, and accelerating the market restructuring process. Liquid glue market demand is scattered but growing fast, in south China, east China emerged more small and medium-sized enterprises, the production of exuberant. After years of development in the high temperature glue and liquid glue market, leading enterprises have emerged, and the competition between leading enterprises for market leadership is becoming more and more fierce, a large number of small and medium-sized enterprises are gradually marginalized because of cost and quality reasons.

In the future, the key to improve the operating rate of China's silicone monomer industry is to improve the operating rate of downstream production units, especially for silicone rubber, which accounts for 2/3 of the consumption of siloxane.

At present, the largest proportion of polysiloxane consumption in China is in construction, electronics/home appliances, power/new energy, medical and personal care, textile and clothing, industrial auxiliaries and other fields. According to SAGSI's calculation, these sectors account for 23.2%, 19.6%, 16.7%, 9.7%, 9.2% and 6.8% of total siloxane consumption, respectively. Commodity and transportation sectors account for 3.4% and 2.5%, respectively. There is still plenty of room for development.

With the gradual completion of the primary industrialization process and the gradual adjustment of the industrial layout, the demand for large-scale long-distance power transmission and transformation facilities will decline, but at the same time, the smart grid, uHV, DC transmission and other new opportunities will bring new market, SAGSI expects the market to maintain an average growth rate of about 5.5% in the next five years.
Tablet PC and control terminal change will greatly affect the consumption of traditional electronic industry, but the consumer electronics industry boom market will continue further, especially contact, mobile, sport, entertainment electronics development prospects are very bright, SAGSI estimate, consumption of organic silicon in the next five years the average growth rate of about 5.0%.