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November 27, 2017 01:00 AM

Shin-Etsu raises silicones prices amid cost pressure from China

Shahrzad Pourriahi
European Rubber Journal
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    TOKYO—Shin-Etsu Chemical Co. is increasing prices for its silicone products globally in response to the rising cost of silicon metal, the main raw material of silicones.

    The company did not disclose price figures or the percentage of price hikes.

    The Japanese specialty chemicals company, which has a strong silicones business, recently said in a statement that manufacturing costs were rising in China, which is a major world silicon metal producer. That led to a steep price increase for the raw material silica as well as carbon electrodes and coal, which are used in the production process for silicon metal.

    Shin-Etsu added that another contributing factor was the Chinese government's clampdown on plants that fail to comply with environmental regulations and subsequent supply pressure on the market.

    The Japanese company said that the price of raw materials would continue to rise, adding that other costs, including energy and transport as well as secondary materials were on the rise as well.

    "It has become difficult to absorb the entire amount of these increased costs only by means of our own company's efforts to reduce manufacturing costs," it said.

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