The last 2 days of the countdown to the end of 2025! The organic silicon market maintains a stable to strong trend, and industry self-discipline and production reduction remain key supports. Currently, 10 major domestic monomer factories are jointly promoting emission reduction and carbon reduction actions. As far as we know, the recent "three to one" verification work of each individual factory has been carried out smoothly, with multiple sets of leading equipment shut down or operating at reduced loads, involving a production capacity of about 700000 tons, and an estimated emission reduction of over 30% this month. Driven by its benchmark, regions such as East China and Central China will further increase production restrictions, and even some individual factories plan to make up for the emission reduction gap in January. It is expected that the supply side will continue to actively shrink after the holiday, supporting stable price operations. In this situation, although downstream enterprises are keeping a wait-and-see attitude, with the gradual digestion of inventory in the early stage, their acceptance of high prices for essential needs has also increased. As of December 28th, DMC quoted 13500-14000 yuan/ton. It is rumored that an industry conference will be held again in early January, planning to raise prices to make a good start. The market for organic silicon is showing a positive trend for the new year. Overall, the peak of domestic capacity expansion has passed, with limited new capacity added in 2026. Demand growth is shifting from traditional construction to emerging fields such as new energy, and is expected to maintain strong resilience. If the upstream joint emission reduction remains consistent in January, strengthens the confidence of the industrial chain, and the middle and lower reaches gradually accept it, how will the first wave of the market in 2026 unfold, and will the silicon market's opening red light come as scheduled?
107 rubber market: Last week, the mainstream quotation of 107 rubber market remained stable. As of December 26, 2025, the mainstream quotation range of 107 rubber in China remained stable at 14200-14500 yuan/ton, and the price remained unchanged during the week. Supply side: The DMC market has shown strong performance and can still provide strong cost support for 107 adhesive in the short term. On the supply side, some individual factories have sufficient pre-sale orders and a strong willingness to raise prices. Some manufacturers control the pace of shipments and prioritize the delivery of core customer orders. It is worth noting that some individual factories adopt a "high-low matching" shipping mode for 107 glue, which steadily improves the market's ability to accept high priced goods. At the same time, the improvement of linear body quality by Shandong manufacturers has driven an increase in processing demand and also prompted some downstream enterprises to flexibly adjust their raw material procurement structure.
On the demand side of silicone adhesive: The consumption progress of low-priced raw material inventory in the early stage has accelerated, and some leading silicone adhesive enterprises have sufficient pre-sale orders. At the end of the year, the stacking of essential stock orders and construction project closing orders forms a strong support for orders. With the gradual transmission of the 107 glue price increase, silicone glue companies with low inventory have increased their willingness to follow suit. Some companies have begun to consider raising product prices, and foreign brands of silicone glue have successively issued a second round of price increase letters, with an increase of 5-10%. At present, high priced transactions in the market are gradually increasing in volume. On the one hand, enterprises are actively inquiring to lock in upstream raw materials, and on the other hand, they are accelerating shipments to promote destocking and capital recovery, preparing for future stock purchases to keep up with rising prices. Photovoltaic adhesive market: Multiple links in the photovoltaic industry chain continued to reduce production in December, but data shows that in November 2025, the scale of newly installed photovoltaic capacity in China increased significantly year-on-year, with a growth rate of 22.4%. If this trend continues, the new installed capacity for the whole year of 2025 is considerable and is expected to exceed the historical milestone of 300GW. In the long run, with the manifestation of the "anti involution" effect in the photovoltaic industry, the production of modules is expected to gradually recover after the stabilization of the industry chain prices, which will drive the steady recovery of demand for photovoltaic adhesives. Overall, the 107 glue market is showing a positive trend of supply contraction and demand recovery. It is expected that the 107 rubber market will maintain stable operation in the short term, and the core driving factors of the market are still cost support and emission reduction expectations. It is necessary to focus on the changes in the shipment rhythm of individual factories at the end of the year and the downstream replenishment efforts.