On the importance of strategic purchase of silicon...

The White House will release the final list of $50 billion Chinese products with 25% tariffs on June 15. The White House issued a statement on China's intellectual property protection measures, and announced investment restrictions and export control measures by June 30. The impact on the peripheral market led to a reshuffle of the market and a general decline of the market. What should the market do in the long empty cycle? Will silicone and chemical raw materials continue to rise? For the insiders of silicone and chemical raw materials, this may be the most concerned topic in the next few months or even the whole year Another news is that the storm of environmental protection law enforcement is raging. With the heavy environmental protection conference held from May 18 to 19, the national ecological environment protection conference was held in Beijing. Xi Jinping pointed out that we should promote green development in an all-round way. Green development is an inevitable requirement for building a high-quality modern economic system and a fundamental solution to the problem of pollution. The key points are to adjust the economic structure and energy structure, optimize the spatial development layout of land, adjust the industrial layout of regional river basins, cultivate and expand the energy conservation and environmental protection industry, clean production industry and clean energy industry, promote the comprehensive conservation and recycling of resources, realize the circular link between production system and life system, and advocate a simple, moderate, green and low-carbon lifestyle. In the face of the impact of the international environment on the economy and the trend of increasing and normalization of domestic environmental protection law enforcement, silicone and chemical raw materials will undoubtedly be impacted. In this severe market situation, as a direct or indirect user of silicone and chemical materials, is it necessary to make strategic procurement and planning? Next, I will make the following discussion for you: 1. If the White House of the United States really announced the list of 25% tariffs on June 15, the country will also impose tariffs on the United States in response to the trade balance. In this way, consumer products will rise again and the increase will not be small 2. If the environmental protection law enforcement is checked regularly again, the unqualified chemical raw material factories and workshops will be closed for rectification. When the output is reduced, the price is bound to rise, which is the law of economics In view of the above two points, if it is necessary to check the current inventory if it is used for a long time and there is no way to replace it with other materials in a short period of time, please make preparations for nearly 3-6 months. Of course, you can continue to look at the market with a wait-and-see attitude, but the consequence may be that you need to purchase the same materials at a higher price, or even products with lower quality 。 The advice of this editor is also the law driven by the market!