Chemical raw materials, especially silicone raw materials costs keep increasing fast started from the beginning of this Aug. This trend may last for a long period as some amin reasons that attribute to this comprehensive raw materials soaring:

1. China’s Environmental Inspections restrain most of up-stream factories’ outcome. Some factories who do not conform to the Environment low are required to rectify their facilities or are even shut down the plant.

2. Materials for silicone raw materials also in shortage and cost soaring, Thereof intensify the situation worse.

3. The shortage causes down-stream market panic, making the demand sharply increasing.

4. The 19th of Chinese National People’s Congress and BRICS Summit will be held soon. Before those meetings finish, the GOV wants to keep everything stable and under control, the Environmental Inspections will be more strict and market situation will be worse in coming months.