Shin-Etsu raises silicones prices amid cost pressure from China

Tokyo – Shin-Etsu Chemical Co. is increasing prices for its silicone products both in Japan and globally in response to increasing cost of silicon metal, the main raw material of silicones.

In a 13 Nov statement, the Japanese speciality chemicals company, which has a strong silicones business, said manufacturing costs in China, which is a major world silicon metal producer, were rising.

That in turn, explained Shin-Etsu, was a result of “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.

Another contributing factor, noted Shin-Etsu, was the Chinese government’s clampdown on plants which fail to comply with environmental regulations and subsequent supply pressure on the market.

The Japanese company predicted that the price of raw materials would continue to rise in the future.

Additionally, Shin-Etsu said that other costs, including energy and transport as well as secondary materials were on the rise too. 

“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.

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