According to official media reports, the forward-looking layout of future industries will promote quantum technology, hydrogen energy and nuclear fusion energy, brain computer interfaces, embodied intelligence, and other new economic growth points. These industries are gaining momentum and will create a new high-tech industry in China in the next 10 years. As a future industry that is a key focus of national development, brain computer interfaces are accelerating their transition from laboratories to industrialization. It is expected that by 2027, the market size of brain computer interfaces in China will reach 5.58 billion yuan, with a growth rate of 20%. Industry insiders believe that the application of brain computer interfaces will drive a significant increase in demand for innovative downstream applications of organosilicon.
Recently, several individual silicone companies have successively disclosed their performance reports for the first three quarters of 2025, and the data is not optimistic - some companies' net profits have plummeted by as much as 98% year-on-year. The industry generally believes that the significant decline in performance is mainly influenced by the market environment, with prices of organic silicon products continuing to fluctuate downward, resulting in a significant contraction in sales revenue and gross profit margin of major products compared to the same period last year.
In the current environment, it is becoming increasingly difficult to rely on the old path of "scale expansion" to drive profit growth. This is a typical portrayal of the stock market: the incremental space is at its peak, competition among enterprises is becoming increasingly fierce, and the traditional strategy of competing for scale and price is gradually failing.
Many silicone companies are still struggling with their original logic: some continue to expand production, but this leads to higher and higher costs; Some are caught in a price war, with profits getting thinner and thinner, and are in a dilemma.
But the existing market is not "without opportunities", but the rules of the game have changed: the focus of competition is shifting from "seizing new markets" to "cultivating old markets", and from "scale expansion" to "refined operation". Only by thoroughly understanding existing customers, products, and operations can we open up new growth opportunities in the red ocean.
Last week, the silicone market situation turned again, with market sentiment shifting from "more gains and less losses" in the previous period to "more gains and less losses". Downstream bearish expectations increased, and inventory consumption strategies were widely adopted. Demand support remained weak. From the perspective of specific product prices, DMC mainstream offers remain at 11200-12300 yuan/ton, but actual transactions are mostly concentrated in the 11200-11500 yuan/ton range; The transaction price of raw rubber ranges from 12500-12700 yuan/ton, the quotation of mixed rubber is 11500-12000 yuan/ton, the transaction price of 107 rubber is 11700-11900 yuan/ton, and the transaction price of silicone oil is 13500-13800 yuan/ton. Overall, although the price ranges of various products remain stable, actual transactions generally lean towards the mid to low levels, and the market center of gravity has shifted downward.
With the resumption of production by multiple small and medium-sized individual enterprises, market supply pressure is gradually emerging, and the price trend of DMC is under pressure and declining. From the perspective of the quotation dynamics of production enterprises, only 3 enterprises raised their quotations yesterday, while the number of enterprises offering discounts and accepting orders increased to 5, reflecting a weakened market sentiment. At present, DMC is still in a range oscillation pattern, with low downstream stocking willingness and insufficient confidence in the future market, and does not have the conditions for a significant increase in the short term.
In terms of the spot market, both the East and South China regions are stabilizing and consolidating, and the overall circulation of spot goods is average. The stable price operation of factories has provided some support for the market mentality, and the willingness of operators to lower prices during the week has weakened. However, in the overall weak operating atmosphere of the industrial chain and related products, the market atmosphere is difficult to be optimistic. Many holders have stable offers and shipments, while downstream demand buying is insufficient, resulting in a light trading atmosphere during the week.
Industry experts point out that the current silicone industry still faces multiple challenges: slow global demand growth, inventory pressure still needs to be treated with caution, industry profitability continues to be under pressure, price war risks remain, geopolitical shocks to industry chain stability, etc. In this context, we call on major corporations to gradually exit excess production capacity, while strengthening the comprehensive rectification of "internal competition", enhancing policy guidance and supervision, in order to promote the healthy and orderly development of the industry.