Shin-Etsu Chemical Co., Ltd. announced on 24th that it is going to increase the sales prices of all of its silicone products, one of Shin-Etsu’s main business segments, both in Japan and globally.
Shin-Etsu announced a silicone products price increase in March of 2021 that was necessitated by the rise in prices of such raw materials as silicon metal and methanol as well as increased logistics costs. Since then, silicon metal, the main raw material of silicones, has faced a tightening of supply and demand globally. As a result, its sharp price increase is continuing. In addition, with regard to the procurement of raw materials and the shipping of products, transportation costs are greatly rising.
Shin-Etsu said it will continue its efforts to reduce manufacturing costs. However, the company judged that it is difficult to absorb all of these increased costs, and unavoidably, it has become necessary to implement price revisions.
The price increase will apply to all silicone products that are handled by Shin-Etsu’s Silicone Division. The price will increase by 10% to 20%, and the price of some products will increase by more than 20%. Effective for product shipments made starting from October 2021.