Recently, there have been consecutive positive news in the domestic ethyl silicone oil industry regarding supply chain integration and technological iteration. A group of backbone enterprises in the field of silicone oil, such as Tai'an Heguang Fine Chemical, Guangdong Zhongke Hongtai New Materials, and Wuhan Kanos Technology, have completed the intelligent upgrade of their ethyl silicone oil production lines. The production capacity of high-purity 99% first grade ethyl silicone oil in China has been significantly increased, effectively filling some of the supply gaps in the pharmaceutical intermediates and high-end electrical insulation materials fields.


From the perspective of industrial layout, the current domestic production capacity of ethyl silicone oil is mainly concentrated in the three regions of East China, South China, and North China. A complete industrial chain synergy system has been formed in the region, from the production of silicone monomers and catalysts to the modification of end products. The R&D investment of top manufacturing enterprises generally exceeds 4.5%. By optimizing the linear polymerization process, the newly produced high viscosity ethyl silicone oil products have a more uniform molecular weight distribution, and the viscosity coverage range of the products has been expanded from the traditional 1000-5000cp to 1000-50000cp, fully meeting the differentiated needs of different scenarios such as automotive industry sealing materials, electronic industry semiconductor packaging, and textile industry fabric soft finishing.


It is worth noting that the recent price adjustments of some products by international silicone giants have further accelerated the domestic substitution process of ethyl silicone oil. Downstream interviewed companies stated that domestic ethyl silicone oil products have a more stable supply cycle and higher cost-effectiveness while ensuring the same performance. Currently, over 60% of customers in the precision instrument and special lubrication fields have completed the switch of domestic raw materials. The industry expects that by 2029, the overall output value of ethyl silicone oil in China will exceed 25 billion yuan, and the technical level will basically reach the international advanced standards, becoming an important global production and export base for ethyl silicone oil.