Yesterday, the stock price of Xingfa Group 600141, one of the leading organic silicon companies, performed outstandingly, with a surge of over 6% during trading and a transaction amount of 1.06 billion yuan, attracting widespread market attention. This strong performance is closely related to the recent positive signals in the silicone industry. Industry analysis shows that the current silicone industry is in a stage of demand recovery, supply-demand rebalancing, and accelerated increase in the share of top enterprises. Against the backdrop of sustained macroeconomic recovery, organosilicon is rapidly replacing traditional materials such as polyurethane and modified plastics with its price advantage, and the downstream application penetration rate is steadily increasing. At the same time, the gradual withdrawal of high energy consumption production capacity overseas is freeing up more market space for domestic leading enterprises, and the industry competition pattern is expected to be optimized.
Despite the overall pressure on the industry in the first half of the year - the price of organic silicon DMC fell into a loss zone since September 2022, and the profitability experienced significant fluctuations in the first three quarters of 2025, there have been signs of recovery in recent profitability levels as companies actively limit production and maintain prices. Data shows that as of October 10th, DMC's average loss per ton was about 10%. Although it has expanded compared to the same period last year, it has significantly narrowed from the previous low point.
From the perspective of performance, in the first half of 2025, the net profit of 17 listed companies in the organic silicon sector decreased by 54% overall, and multiple individual enterprises experienced their first losses. However, industry differentiation is evident, with companies such as Hengxing Chemical, Runhe Materials, Huitian New Materials, and Silicon Treasure Technology maintaining good performance by leveraging their advantages in segmented fields.
Market insiders point out that with the gradual improvement of supply and demand patterns, the profitability level of the silicone industry is expected to continue to recover. As one of the industry leaders, Xingfa Group's strong market performance may indicate the arrival of a turning point in the industry.