How China Dual Control of Energy Consumption effects silicone materials

Jess

Oct 18, 2021

Started from 22nd Sep after Chinese Mid-Autumn Festival, China's Dual control of Energy Consumption policy has great impact on the world economic and supply chains.

Just in few days, everyone could feel that the materials and goods worldwide become shortage and commodities price increase skyrocket, making everyone in deep concern.

What is "Dual Control of Energy Consumption" Policy and why? Today, UniSil brings you the interpret.

Dual Control of Energy Consumption specific means cut down factories' electricity consumption (only allow to work 1~3 days per week) to limit the productivity. Effected by this policy, the whole productivity in whole China is cut down to half, some of even 90%, making the all materials in deadly shortage and price skyrocket just in few days.

Why now?

After World Carbon Emission Conference, main countries in the world all agree to limit the carbon emission.

China set the goal to limit the carbon emission each period; In the first half year, China's productivity was so hot. Most of factories in China went into full production operate at full capacity making these is no quota for most of provinces in China for next half year. Meanwhile, the coal materials which mostly use to serve the electricity gets shortage and cost higher. Under this situation, China has to take action by cutting down the energy and productivity.

How this policy effect the silicone rubber materials? Specific to silicone materials, it already gradually increase from last year. Apart from those obvious factors like:

1. Covid-19 effect that the most productivity worldwide transit to China due to it is the first country recover from epidemic;

2. Ease Monetary worldwide, pushing all materials cost high.

Other main factors We think is, After World Carbon Emission Conference, China strives to develop green and new energy to reduce carbon emission; among them, Photovoltaic power and new energy are very hot this year. While for PV power, it needs metal silicon. Metal silicon is the first up stream of silicone rubber.

This means, metal silicon not only need to supply to silicone industry, but also have to be supplied to PV field and any other fields. This make the silica materials even more shortage and push the cost higher. When this situation combines the policy of Dual control of Energy consumption, it sparks the silicone materials and cost out of control and price soaring double in few days.

UniSil is a professional and strong manufacturer in silicone rubber. We try our best to avoid the effect from this situation. And no matter how hard situation is, Unisil always set the quality, service and price competitive as priority.