Recently, US President Trump announced on his social media platform "Real Social" that starting from October 1st, the United States will implement a new round of high tariffs on various imported products. The measures include imposing a 50% tariff on kitchen cabinets, bathroom sinks, and related building materials, a 30% tariff on imported furniture, and an additional 100% tariff on patents and branded drugs. Industry reports reveal that the US silicone adhesive market heavily relies on overseas supply, with imported products accounting for over 70%, highlighting its supply gap in this critical building materials sector.
Silicon metal exploded, with a 5% drop! Yesterday, the industrial silicon futures market experienced significant selling pressure, with the main contract opening lower in the morning and continuing to decline, hitting a low of 8575 yuan/ton during the day, with a intraday decline of nearly 5%, setting a new low in price since September 10th. At the same time, the main contract for polysilicon also weakened, with a intraday decline of over 2%, reflecting a bearish sentiment in the overall silicon industry chain.
At present, the price of organic silicon has returned to the low level of the year, and the supply and demand in the industry have both decreased compared to the previous year. On the one hand, the enthusiasm for increasing production capacity at low individual prices is average; On the other hand, the transaction prices of various organic silicon products have remained stable with a slight decrease. As of September 29th, the transaction prices of DMC mainstream monomer factories are 11300-11500 yuan/ton. The performance of traditional demand peak season is average, and the month on month increase in transactions of major enterprises in September is still lower than that of supply, resulting in an average quality of gold nine. From a fundamental perspective, the current demand for industrial silicon is weak. According to SMM statistics, the operating rate of the organic silicon industry remains at 71.2%. Although some facilities in East China have been shut down for maintenance due to sudden accidents, resulting in a slight drop in DMC production to 48500 tons per week, overall supply pressure still exists. Ruida Futures analysis points out that the organic silicon market continues to decline, the industry's profit margin is narrowing, and the driving force for enterprises to increase production is insufficient, resulting in a significant weakening of the demand for industrial silicon.
Overall, the industrial silicon market is currently facing a weak supply-demand pattern. Although there are individual device maintenance on the supply side, the overall output is still relatively high; On the demand side, both organic silicon and polycrystalline silicon have shown weakness, making it difficult to digest existing inventory. In the absence of substantial positive factors, it is expected that industrial silicon prices will continue to operate weakly in the short term. In the future, it is necessary to closely monitor the recovery of downstream demand and the progress of inventory reduction in various links.
Heavy news! ECHA withdraws SVHC intended substance, and there is a new trend in the regulation of the silicone industry: On September 17, 2025, the European Chemicals Agency officially withdrew its intention to include dodecylpentasiloxane in the SVHC (Substances of Very High Concern) candidate list. This move has temporarily left the current SVHC intention list in a "blank" state, indicating that the regulatory risk of this substance under the EU REACH regulation has been lifted in the short term.
Meanwhile, another commonly used organic silicon compound with a similar structure, decamethylcyclopentasiloxane, is facing increasingly strict regulation from the European Union. According to the latest REACH Annex XVII amendment (EU) 2024/1328, which came into effect on June 6, 2024, the use of D5 in cleaning cosmetics and certain consumer goods has been clearly restricted.
This regulatory trend of "loosening and tightening" has brought complex and far-reaching impacts to related industries.
Core Impact Analysis
1. Impact on the silicone industry: short-term respite and long-term challenges coexist
Short term benefits and cost optimization: The SVHC intention of dodecylpentasiloxane has been withdrawn, which means that organic silicon producers and downstream enterprises that use it as a raw material or intermediate temporarily do not need to fulfill the cumbersome obligations brought by SVHC, such as supply chain information transmission and SCIP notification. This reduces the compliance costs and operational complexity of enterprises, providing a stable policy window for the trade of related products with Europe. Clear R&D orientation: This incident is in sharp contrast to the continuous control of D5, sending a clear signal to the industry that the environmental and health risks of linear siloxanes (such as dodecylpentasiloxane) and cyclic siloxanes (such as D5) are treated differently at the EU regulatory level. This will motivate companies to tilt their research and development resources towards linear siloxanes or new silicone materials with better environmental footprints and lower regulatory risks, accelerating the upgrading of product structures. Long term uncertainty still exists: withdrawal of SVHC intention does not equate to permanent safety. ECHA may restart evaluation based on new scientific evidence. Therefore, the industry cannot take it lightly and needs to continue to pay attention to scientific research and regulatory trends related to substances, and do a good job in risk management.
2. Impact on the cosmetics industry: increased clarity and substitution pressure
Improved formula clarity: For cosmetic manufacturers, the temporary relief of the risk of dodecylpentasiloxane provides them with a relatively safe option in formula selection, especially in formulas that require specific volatility or skin feel. Replacing D5 has become an urgent task: the clear control of D5 has a greater impact on the industry. D5 was once a common ingredient in spray type antiperspirants, shampoos, foundation make-up and other products because of its excellent volatility and silky skin feel. After the new regulations come into effect, companies must ensure that restricted products such as cleaning cosmetics sold in the EU market meet the D5 limit requirements, which directly promotes the research and application of D5 alternatives in formulations. Supply chain management challenge: Cosmetics companies need to conduct stricter reviews of their raw material supply chains to ensure that the raw materials used, such as silicone oil and silicone elastomers, do not contain or only contain trace amounts of restricted D5, which increases the complexity and cost of supply chain management.
3. Impact on the textile additive industry: indirect impact and risk prevention
Indirect impact: Organosilicon is a key component of textile additives such as softeners and waterproofing agents. Dodecyl pentasiloxane itself is not widely used in the textile industry, but its regulatory trend reflects the EU's attitude towards the entire organosilicon family. The withdrawal of its SVHC intention provides temporary stability for textile auxiliaries using other linear siloxanes. Pay attention to related substances: The textile industry needs to focus on the control of D5. Although D5 is not directly used as a textile additive, it may exist as an impurity or byproduct in some silicone oil production processes. Enterprises need to ensure that the organic silicon additives they purchase comply with the restrictions on D5 in Annex XVII of REACH, in order to avoid non-compliance of finished products due to impurities. Promoting Green Transformation: The EU's ongoing "tightening" regulatory tone is forcing global textile chemical suppliers to develop more environmentally friendly and biodegradable "green silicone oil" and additives to meet the sustainable development requirements of brands and markets.
Summary and outlook: ECHA's decision to withdraw this time is not a signal of the EU relaxing its regulation of chemicals, but rather a prudent adjustment based on existing scientific evidence. It reveals the refined and differentiated regulatory approach of the EU REACH regulation.
For the industries of organosilicon, cosmetics, and textile auxiliaries, the future competition is not only about cost and performance, but also about compliance and sustainability. Enterprises must:
1. Establish a dynamic regulatory monitoring system to track global, especially EU regulatory changes in real-time. 2. Increase research and development investment, actively layout low-risk and easily degradable alternative chemicals and technologies. 3. Strengthen the transparency of the supply chain and work together with upstream and downstream partners to build a compliant and sustainable industrial chain.
Only by integrating forward thinking compliance into corporate strategy can we achieve stability and long-term success in the increasingly complex global trade environment.