Global Shortage of Silicone Polymer

Manufacturers across the globe are beginning to express concern about availability of raw materials. We are already being warned about potential price increases in quarter two 2017 – up to double digit increases in some cases - but more concerning is the potential shortages.

This news is quite fresh and unfortunately not much information can be found online yet, but we expect media to pick this up in the next couple of days. Everyone in the industry on a global basis will be affected by this; so users need to be prepared that their costs may rise whoever they are buying from.

Starting in March and probably for at least the next six months, we are predicting that the market will face a polymer shortage of approximately 20-25%.  As a result, it is going to be almost impossible for producers to guarantee supplies of product

This pricing and availability issue may cause some opportunistic (spot market) buying but it seems unlikely that “shopping around” will lead to any significant success. Depending on how critical the shortage becomes, will need to carefully consider the potential impact on their business and plan accordingly and we recommend confirming production orders for deliveries at least 3 months ahead