On April 1, 2025, Beijing - Recently, there have been reports of production cuts in the domestic silicone industry. According to industry insiders, in response to market supply and demand imbalances and cost pressures, major domestic individual enterprises have preliminarily determined their production reduction plans for April. Data shows that the operating rate of individual enterprises that are still in production has generally decreased to below 70%, and the operating rate of some enterprises may even be lower than 30%. This measure directly leads to a continued downward trend in supply, and it is expected that the consumption of industrial silicon will decrease by more than 10000 tons in April.
Industry experts point out that since the beginning of 2025, the demand for organic silicon market has continued to grow, but due to multiple factors such as rising raw material costs and stricter environmental policies, the profit margins of enterprises have been squeezed. Therefore, optimizing the supply and demand structure by reducing production has become a common choice in the current industry.
Despite increased production cuts, the market remains optimistic about the future demand for organosilicon. It is predicted that the domestic demand for organic silicon will increase by about 10% year-on-year in 2025, and the total amount is expected to reach 2.8 million tons. This expectation provides confidence for companies in the industry, and also prompts them to pay more attention to technological innovation and product upgrades while reducing production, in order to better meet market demand.