Domestic Silicone Exports Declined Further in October due to Falling Overseas Demand

SHANGHAI, Nov 29 (SMM) - According to the General Administration of Customs, in October 2022, China's silicone export volume was 26,100 mt, a decrease of 15.81% from the previous month, and the silicone import volume was 6,600 mt, a decline of 12% on the month. Therefore, the net exports stood at 19,500 mt. From January to October 2022, the cumulative export volume of silicone was 400,800 mt, a year-on-year increase of 38.16%, while the cumulative import volume was 82,000 mt, a year-on-year decrease of 28.45%. Therefore, the net exports recorded 318,800 mt.

In October 2022, China's top 10 export destinations imported 16,900 mt of silicone from China, accounting for 64.75% of the total export volume, down 12.44% or 2,400 mt from the previous month. Among the top 10, exports to most countries diminished in October, excepted for Vietnam, Turkey and the Netherlands.

In October, the overseas fuel prices advanced due to the energy crisis. The production costs of foreign chemical enterprises increased sharply and weighed on their operating rates. As a result, the overseas demand for silicone was weak. In addition, the impact of the overseas pandemic is gradually expanding, further restricting the transportation and production. It is obvious that the consumption and the operating rate of overseas downstream enterprises are sluggish. In this context, the exports of silicone in November are expected to remain low.