Topco Technologies, which distributes silicone materials for Japan's Shin-Etsu Chemical, has expressed optimism that its sales and profits for 2021 will be bolstered by rising prices for the materials.
Shin-Etsu has announced plans to raise quotes for its silicone offerings starting April 1 in response to worsening shortages caused by strong demand for consumer electronics, thermal module and automotive electronics applications that is expected to persist through the third quarter, according to Topco CEO SH Chang.
Chang said Topco is still busy digesting massive extra orders placed by clients since fourth-quarter 2020, and will adopt new prices for new orders placed after April 1.
Silicone demand for consumer electronics, 5G and automotive applications will continue to sustain strong growth momentum, Chang said, adding that Asian clients, particularly those in China, are actively demanding more silicone shipments to support rapid recovery in diverse industrial applications seen since late 2020.
Chang said that judging from orders in hand, silicone demand will continue to outstrip supply in the next two quarters, which will contribute positively to Topco's revenue and profit results for 2021.
