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what can you do when prices fluctuate?

The price increase of the silicone industry has successfully attracted the attention of industrial manufacturing companies. Although there is no collective popularity as expected, most of the organic silicon raw material companies are in short supply and are in high demand.Price of raw materials of Silicone sealant is rising

Lately, Dow, Shin-Etsu, Wacker and many other overseas companies arranged price increases for the “peak season”, involving polyesters, silicones, surfactants, silicone oil, silicone rubber, etc. 

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01 Rising Price of raw materials 

Recently, the domestic DMC market was stable and small, and the market price adjustment range of individual grades was 100 yuan/ton.

Last week, the domestic silicone rubber market rose within a narrow range, with an increase of 10-15% per ton.The scope of production reduction in the silicone rubber industry has expanded, and the supply of goods has been further tightened. Merchants gathered together to raise prices.

And the domestic 107 rubber market price rose slightly, and the market price of some grades rose by 100-200 yuan/ton. The DMC plate fluctuated and stabilized, and the 107 rubber plate surface strengthened. From the fundamental point of view, the short-term supply reduction and inventory reduction continued, the domestic spot market price was firm.

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Also, the domestic mixed rubber market mainly maintained stability, and some grades rose by 100-200 yuan/ton. The market offer is slightly chaotic, some big brands of compounded rubber have firmed up in a narrow range, and the industry has a cautious wait-and-see attitude.

In the first half of the year, from coffee to fast food, from automobiles to air conditioners, owners of all walks of life fought a “low price fight”, and the silicone raw material end was no exception. A price war was triggered in July. 

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02 Factors affecting raw material prices

Raw material of silicone sealant prices have recently shown a rebound trend from oversold prices, and voices of price increases continue to appear. On September 7, Dow rose by 1,000, WACKER rose by 500, and Shin-Etsu Silicone Oil rose by 30%. 

Many industry experts believe that Shin-Etsu’s silicone oil price increase may be related to three major factors: Japan has reaped the dividends of major changes in international politics, and the global technological explosion has brought new growth factors and the power of the industrial cycle to Japan.

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03 What can you do in this situation?

For the rise in the price of silicone sealing collagen materials, many manufacturing companies have obviously felt the pressure of soaring raw material prices and increasing costs. On the one hand, some exporters worry that rising prices will further erode profits. On the other hand, they worry that if they adjust their prices, their products will become less competitive in overseas markets.

In response to the situation, HOMEY is doing the two things:

First, we upgrade the brand of HOMEY with more connotation and value. Despite the ever-changing situation, the lifeblood of the silicone industry remains the same. HOMEY always along the “good product, good quality, good brand, good channel coverage” line step by step.

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Second, in terms of product prices, HOMEY has always done a good job in the prevention and control of raw material price fluctuations. When the price of raw materials falls, we have built up appropriate reserves.

We have always upheld the values of integrity, which is not only reflected in the quality control of our products, but also in the quotations and services we provide to our customers. we always deliver on time according to the contract prices signed with our customers. We focus on long-term development and win-win cooperation with customers.

When silicone sealant raw material prices fluctuate, you should also seize the opportunity to cooperate with HOMEY, which has better quality and more competitive prices.

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