Recently, there have been significant changes in the supply and demand pattern of the silicone market, and the industry is accumulating upward momentum. From the price increase of upstream product DMC, to the production reduction operations of various individual manufacturers, and to the intensive increase of ex factory prices by some production enterprises, the recovery of the organic silicon industry has begun to show signs.

According to monitoring data from Zhuochuang Information, as of the end of February, the domestic DMC market prices have risen by nearly 10%. Behind this round of price increases is the dual effect of supply side production cuts and demand side recovery. On the one hand, the growth rate of new production capacity of organic silicon monomers in China has significantly slowed down, coupled with the rotation of production cuts by monomer factories, leading to tight market supply; On the other hand, with the arrival of the traditional peak demand season, domestic and foreign trade demand is expected to be released, further pushing up market prices.
Industry insiders believe that the rise of the silicone industry from the bottom of the cycle in this round means a new change in demand. The development of emerging fields has brought new opportunities and challenges to the industry, and enterprises need to increase research and development investment, improve product performance and quality, in order to meet market demand.