Whether in China or globally, the price of silicone products has increased by 10% to 20%, which is due to the increase of raw material of silicone.

Due to the rising electricity prices and the fluctuation of exchange rates in China, the world’s major metal silicon producer, the production cost of silicon metal, the main raw material for silicon metal products, has increased. For these reasons, the production costs of silicone products have increased dramatically. Looking ahead, China’s production costs are expected to increase due to the need to invest in new facilities to comply with new environmental regulations, and the outlook is that silicon metal prices will continue to be at a higher level. In addition, with the recent sharp rise in crude oil prices, manufacturing energy costs, such as heavy oil and gasoline, as well as transportation costs and the cost of secondary materials, are also rising, and they have become the benefits of extruded silicone products.

In this case, Prosper continues to do its utmost to reduce manufacturing costs by implementing various measures such as rationalization activities. However, it has become difficult to bear the full burden of these increased costs simply through the efforts of our company. Therefore, it is inevitable that it is necessary to reflect a part of the increased cost in the sales price of our silicone products.

We respectfully ask you to understand the grim situation of our silicone business and why we need to raise prices.