Chinese car brands have finally made a breakthrough in sales in the European market, entering a period of rapid development from a relatively stagnant stage. Moreover, more Chinese brands have ushered in a glorious moment surpassing Western brands. The European Automobile Manufacturers Association (ACEA) recently released EU new car registration data showing that in August, BYD's new car registration volume was 9130, higher than Tesla's 8220. The data from JATO Dynamics for 28 European countries also indicates an upward trend in Chinese car brands. In August, the number of new car registrations for Chinese car brands increased by 121% year-on-year to 43500, surpassing the registration volume of local European brands including Audi and Renault.
On Monday, the domestic organic silicon market showed a general upward trend, with major single enterprise DMC transaction prices rebounding to over 11000 yuan/ton. The current market supply and demand pattern is showing a tightening trend: on the supply side, the concentrated maintenance of multiple individual enterprises has led to a decrease in the operating rate of equipment, and the DMC market supply is significantly tight; On the cost side, the continuous high operation of raw material prices provides strong support for DMC prices.
From the perspective of market trading, as the focus of quotations shifts upwards and downstream enterprises make moderate purchases at low prices, the market transaction atmosphere has improved. Under the cost transmission mechanism, downstream products such as 107 rubber, raw rubber, mixed rubber, and silicone oil have all experienced slight price increases. Considering the expectation of continuous increase in DMC and the orderly transmission of cost pressure along the industrial chain, it is expected to support the stable, medium to strong operation of the organic silicon product chain prices in the short term.
It is worth noting that in the first nine months of this year, the number of projects in which individual enterprises extended their layout to downstream fields reached a new high. From a regional distribution perspective, major production areas such as Xinjiang, Shandong, Jiangxi, Hubei, Zhejiang, and Inner Mongolia have all achieved positive growth year-on-year, reflecting the sustained enthusiasm of individual enterprises to expand into downstream fields. This trend is closely related to the strategic demand for digesting excess production capacity on the raw material side. Under the "production based on sales" model, individual enterprises are actively laying out downstream core application areas of organic silicon.
Against the backdrop of deep adjustments in the silicone industry, production capacity is no longer the sole determinant of a company's core competitiveness. In the current market environment, whether enterprises can maintain resilience and achieve sustainable development in fierce price competition depends more on the health of their cash flow and the ability to build technological barriers.
Industry experts believe that companies with the following characteristics will have an advantage in industry integration: firstly, having a robust cash flow management system that can support normal operations and strategic investments during market fluctuations; The second is to master core technologies and continuously build technological barriers, establishing competitive advantages through product differentiation and cost optimization.
It should be noted that companies that rely solely on capital investment and fail to achieve effective economies of scale, or whose cash flow management leads to a broken capital chain, even if they have a large number of project layouts, will find it difficult to survive in long-term competition. The industry is shifting from extensive expansion to refined operation, and the internal quality of enterprises will become a key factor determining their market competitiveness.
Industry analysis indicates that "anti involution" has become the highest development trend in the industry, with a clear medium to long term trend. Against the dual backdrop of the Federal Reserve's interest rate cut cycle and anti involution policy, the upward trend of organic silicon prices has a solid foundation. After years of practice, the industry has accumulated rich experience in capacity and output control. The "anti involution" policy is expected to further optimize the supply structure on the basis of "dual control of total capacity and total output", so that the supply side can better match the trend of demand side changes. This transformation will promote the reconstruction of industry logic, help the product pricing system achieve value return, and create a favorable environment for the healthy development of the industry.
Big company suddenly! One of the organic silicon giants, Dongyue Silicon Materials, disclosed its performance forecast on the evening of October 13th, expecting a net profit attributable to the parent company of 2.3 million yuan to 3.3 million yuan in the first three quarters of 2025, a year-on-year decrease of 96.27% -97.4%; The estimated net profit after deducting non recurring expenses is 11.3 million to 12.3 million yuan, a year-on-year decrease of 87.1% to 88.14%. During the reporting period, due to the impact of the market environment, the prices of organic silicon products fluctuated downward. As a result, the company's main product sales revenue and gross profit margin decreased compared to the same period last year.
On July 20, 2025, a fire accident occurred in the synthesis phase B bed of the company, resulting in the suspension of production of the unit and causing adverse effects on the third quarter business performance, including shutdown losses. The company has earnestly learned from the lessons of this fire accident and formulated a systematic rectification plan and measures to improve the level of intrinsic safety. It has promoted the implementation of the "300000 tons/year organic silicon monomer and 200000 tons/year organic silicon downstream product deep processing project" monomer synthesis unit safety and process improvement project, and plans to complete the transformation and resume production by the end of 2025.
Another giant applies for bankruptcy reorganization! On October 13th, Sinochem International issued another announcement, and the company's board of directors approved the proposal on the bankruptcy reorganization plan for Ningxia Lithium Battery. Due to the continuous loss of operating performance of its controlling subsidiary, Ningxia Zhonghua Lithium Battery Materials Co., Ltd., which has become insolvent and unable to repay its due debts, the board of directors of the company has agreed to allow Ningxia Lithium Battery to apply for bankruptcy reorganization to the court. In addition to the two lithium battery industries mentioned above, the company only has one business attribute left, which is engineering and technology research and experimental development, namely Zhonghua Yangzhou Lithium Battery Technology Co., Ltd. and Hebei Zhonghua Lithium Battery Technology Co., Ltd. According to the data, Ningxia Zhonghua Lithium Battery Materials Co., Ltd. was established in 2018 with a capital injection of RMB 500 million. Among them, Zhonghua International holds 94% of the shares, Duko holds 4.2%, and Central South University Asset Management Co., Ltd. holds 1.8%.