Recently, the tight supply and demand situation in the silicone industry has become increasingly evident. In order to cope with the tight supply of raw materials and cost pressures, multiple silicone production enterprises have increased their production reduction efforts.
According to Shandong Zhuochuang Information Co., Ltd., the growth rate of new production capacity of organic silicon monomers in China will significantly slow down in 2025, coupled with the rotation of production reduction by monomer factories. It is expected that from February to March, the proportion of maintenance capacity related to the total industry capacity will be around 20%, and the monthly production of organic silicon monomers will be reduced by about 20000 tons.

Analysts point out that this round of production cuts is mainly due to the tight supply of raw materials and cost pressures. Due to the continuous rise in the price of silicone raw materials, the production cost of manufacturers has significantly increased. In order to reduce costs and ensure profits, enterprises have to take measures to reduce production.
However, the implementation of production reduction measures has also brought certain market impacts. On the one hand, the reduction in production has led to a decrease in supply, exacerbating the tight supply and demand situation in the market; On the other hand, reducing production also limits the production capacity and market competitiveness of enterprises. Therefore, how to maintain market competitiveness while ensuring profits has become an important issue that current silicone enterprises need to face.