Silicone oil and silicone rubber is an important organic silicone products. Organic silicon industry chain mainly include silicon, organic silicon monomer and organic silicone products. The upper reaches of organosilicon monomer is silicon metal and methanol, the total cost accounted for 90%. Methyl chlorosilane monomer is the largest species, the proportion of consumption is about 90%. Silicone products including silicon rubber, silicone resin, silicone oil and silane coupling agent and other four categories, including silicone rubber consumption accounts for about 65%, the proportion accounted for about 18% of silicone oil.

The future of organosilicon monomer demand growth will slow down. Globally, silicone monomer operating rate was only about 65%, the expected future demand growth will slow down. China is concerned, the future of the monomer demand growth of about 12.5%, in 2012 the monomer production capacity of 1830000 tons, there are about 6 enterprises to domestic supply stability, the situation of excess production capacity is lower than market expectations. From supply and demand perspective, the future of domestic supply and demand gap will be gradually reduced, import dependency in 2011 was only 11%, in the high-end single basic import domestic substitution, part of the high-end single still need to import.

The technical barrier is a key factor leading to the monomer of monopolistic competition. The global silicone monomer shows monopoly competition pattern, Dow Corning, LAN-STAR chemical, Wacker CR6 production concentration is 70.8%, the technical barrier is the key cause of organosilicon monomer of monopolistic competition, technical barriers to bring competitive advantage to have two: one is to process level cost advantages, one is the difference of the technology advantage of the purity of the product.

Silicone rubber enterprises most in the profit and loss balance point. The future supply and demand of high temperature silicon rubber basic balance, reduce the cost and development of new products is the main means to participate in the competition, silicone rubber including tax price of 18600 yuan / ton, the cost is about 16000 yuan / tons, a basic balance of profit and loss. In 2012 the room temperature silicon rubber in China production capacity is about 600000 tons, the next 2 years will be the expansion of 150000 tons, demand is about 400000 tons, capacity of CR6 concentration is about 50%, the future of room temperature silicone rubber in the field of competition will be very fierce. From a cost point of view, 107 silicone rubber cost is estimated at 15000 yuan / ton, the tax inclusive price of 18500 yuan / ton, 107 silicone rubber in the basic profit level.