Massive Price inflation on Liquid Silicone Rubber and Molding Silicone

Liquid Silicone Rubber and Molding Silicone.

As its name suggests, liquid silicone rubber is liquid in nature while molding silicone is solid and has no fluidity. These materials are widely used in the production of technical items where strength, resistance, and high quality are needed. These silicones are excellent materials for creating molds of various items. These molds are typically detailed, flexible, and have the extra benefit of having a longer life cycle and being resistant to chemical corrosion and decomposition.

Increased prices of Liquid Silicone Rubber and Molding Silicone

With the recent news of price increases for all silicone products, big corporations have announced increases in prices for their products, while others have chosen to explore other options. Small businesses have gone out of business because they do not have an alternative for silicon. The prices increase has markedly taken a toll on the economy and has had a global effect on the manufacturing industry.

Shenzhen LYA Silicone rubber products is a company with 20 years industry experience that specializes in production and selling of food-grade silicone products such as baby products, kitchen products, household products and outdoor products. These products have been made with silicon to ensure they are of high-quality, durable and stronger.

Why the cost of silicone raw materials are high.

There are several reasons which have been thought to cause the sudden price hikes such as;

• The raw materials used to make the silicon have become expensive which are very essential in the manufacture of silicone products. This has forced several manufacturers to increase the prices of their products with a view of making a profit.
• The cost of logistics has also increased. This has contributed because the cost of transportation and shipping of these materials to the manufacturers has become high. This has slowed production which in turn has made it necessary to hike the prices of these raw materials so as to meet the high cost of transportation.
• The supply and demand of silicon are becoming tight. The supply is usually dependent on the rate of production but is majorly dependent on the level of demand. Recently, there has been a high demand for silicon by various industries which rely on silicon in manufacturing silicone products. Without an adequate supply of silicone, the manufacturer’s rate of production is slow which disadvantages them.
• The raw materials may be available in small amounts but in outrageous pieces which makes it difficult for enterprises to obtain them. And if they are able to obtain them, they will have to increase the prices of silicone products, and these prices are subsequently transferred to the consumer.

These price changes have impacted various industries in terms of production and the costs associated with marketing the products that they sell. It is projected that prices are likely to remain high which has made it necessary for enterprises to revise their prices in products until more production capacity becomes available, or until they find another alternative for silicon.