After experiencing a price increase of 800 yuan, two major silicone monomer companies announced a price increase of 500 yuan yesterday, pushing the mainstream DMC quotation to break through the 12000 yuan/ton mark. Although the overall market operation is stable, there is still pressure of oversupply in the short term. However, against the backdrop of increased policy support and a general reluctance of companies to sustain losses, the industry expects that the possibility of DMC prices falling sharply again this year is low, and market sentiment is stabilizing.
It is worth noting that several leading companies have reached a consensus on their fourth quarter business strategies, adhering to the principle of "no sales at loss, no credit sales, and no rush to run", and jointly maintaining a reasonable level of industry profits. At present, the DMC contract quotations of major enterprises in Xinjiang, Hubei and other regions are stable in the range of 12300-12500 yuan/ton, significantly higher than some small and medium-sized manufacturers, reflecting the positive role of large factories in stabilizing prices and providing a bottom line.
Industry observers point out that top companies such as Luxi, Hesheng, Xingfa, Xin'an, and Dongyue have recently taken the initiative to raise prices, which may be related to the performance pressure commonly seen in the third quarter reports of the A-share organic silicon sector. The disclosed data shows that although most individual enterprises still maintain growth in revenue, the profit side has generally declined significantly, and the situation is severe.
The combination of weak demand, continuous release of new production capacity, intensifying price wars, and high costs (especially financial expenses) is gradually compressing the overall profit margin of the silicone industry. At the same time, multiple downstream listed companies have also fallen into the dilemma of "increasing revenue without increasing profits", further highlighting the current core contradiction in the industry: the serious imbalance between the concentrated investment of homogeneous production capacity and the slow growth of terminal demand. In order to maintain market share, enterprises have to adopt a "price for quantity" strategy, ultimately sacrificing profit margins.
Based on the performance of listed companies in the organic silicon industry in the third quarter of 2025, the industry has entered a "cold winter period" of deep adjustment. The weak demand and continuous price decline have become common challenges faced by the entire industry, from leading enterprises in Xinjiang, Shandong and other places to many small and medium-sized manufacturers, they are generally in a loss making situation.
Currently, the "price war" is becoming increasingly fierce, and "increasing income without increasing profits" has become a common phenomenon in the industry. The pressure of overcapacity continuously squeezes the profit margins of each enterprise through fierce price competition, intensifying internal competition within the industry. In this context, the quality of life among enterprises is rapidly diverging, and internal operational capabilities have become a key factor determining the survival of enterprises. Specifically, financial cost control (such as interest expenses), diversified business risks (such as the performance impact of some large companies entering the photovoltaic sector), production line operation efficiency (such as the start-up situation of bases in Inner Mongolia, Hebei, etc.), and raw material cost control capabilities (such as the practices of representative enterprises in Shandong region) are becoming the core considerations for whether enterprises can "survive" or even "live well".
Looking ahead to the future, the silicone industry has entered a stage of deep reshuffle and adjustment. The extensive growth model that relied on capacity expansion in the past is no longer sustainable, and competition is shifting towards cost control, refined operations, financial health, and product structure optimization. In this process, the high-quality development of the industry does not exclude competition, but enterprises must take the path of innovation, adhere to the principle of opening up sources and cutting costs, and strive to reduce costs and increase efficiency while ensuring product quality. At the same time, various types of production capacity investment also need to be controlled in an orderly manner to avoid blindly expanding and exacerbating industry difficulties. In addition, relevant local departments should also intervene in a timely manner to guide the industry out of the disorderly and internal competition dilemma, and promote the industrial chain to move towards a sustainable and healthy development track.