Silicone industry regresses due to high demand, low capacity
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The global silicone market is experiencing deja vu, reminiscent of 2017-18, with tight supply, soaring prices and escalating demand as the Asia-Pacific and North American markets open up following the pandemic and upstream manufacturers of silicone monomers lag in capacity.
With Asia serving as the bellwether region more than half of the world s silicone usage now is in the Asia-Pacific space, with China as the world s largest consumer trends there tend to reach North America within a couple months. In Asia, the average price of silicone was up more than 50 percent year-over-year this past March and more than 25 percent year-over-year for February 2021, according to Erick Sharp, who monitors the silicone market as president of Ace Products and Consulting L.L.C., based in Ravenna, Ohio.
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