The Ministry of Industry and Information Technology and six other departments have issued guidance on promoting the comprehensive utilization of photovoltaic modules, promoting efficient purification of valuable components in photovoltaic modules, and using wet and pyrometallurgical processes to improve the purity of silicon materials. By 2027, the green production level of photovoltaic modules will be further improved, the proportion of recycled materials will be effectively increased, and the evaluation standards and inspection methods for module scrapping will be improved. Cultivate a group of backbone enterprises for the comprehensive utilization of waste photovoltaic modules, with a cumulative utilization of 250000 tons of photovoltaic modules.
Entering this Wednesday, the overall organic silicon market showed a slight upward trend. From the supply side, some individual units have insufficient operating loads, resulting in a slightly tight supply of goods in the market. This favorable supply side provides strong support for the mentality of holders. At the same time, with the return after the holiday, the replenishment sentiment of middle and downstream users has significantly improved, and market buying sentiment is gradually recovering, with a more active trading atmosphere compared to the previous period. DMC (Dimethyl Cyclosiloxane), as a basic raw material, currently maintains a relatively high price range of 14000-14500 yuan/ton within the year, laying a solid bottom foundation for the cost side of the entire industry chain.
On the cost side, recent international geopolitical factors have continued to ferment, especially the turmoil in Iran, which has intensified market concerns about energy supply, driving up the price of methanol, one of the key raw materials for organic silicon, strongly. Driven directly by this, several 107 rubber production enterprises in Shandong region have taken the lead in raising prices, and the overall market willingness to purchase goods has significantly increased. Due to limited spot circulation, some holders are showing reluctance to sell, further exacerbating the tense atmosphere in the market. As of now, the mainstream transaction price of 107 glue in China has risen to 14800-15100 yuan/ton.
Compared with the strong rise of 107 glue, the silicone oil market shows a stable operation trend, but the demand logic behind it is also clear. With the steady recovery of downstream daily chemical, printing and dyeing industries, the expected increase in demand for silicone oil in the market is more significant. The negotiation and implementation process of the new moon orders has been relatively smooth, and the market trading atmosphere is showing signs of improvement in a stable manner. In this context, the mentality of the silicone oil market is stable, and the mainstream transaction price remains within the range of 15500-16100 yuan/ton, showing strong resistance to decline.
It is worth noting that the raw material side butanone market has recently experienced an independent and intense upward trend. On Monday, the price of butanone surged by 1000 yuan/ton in a single day, climbing to a high of 9500 yuan/ton. This sudden and significant price increase directly led to a sharp increase in the production cost of crosslinking agents. Faced with enormous pressure on the cost side, most domestic crosslinking agent manufacturers are unable to provide external quotations and have taken measures to seal off sales. Instead, they have implemented a cautious sales strategy of "single item negotiation" to avoid operational risks caused by further fluctuations in raw materials. As an essential auxiliary material for silicone adhesive, crosslinking agents are rapidly transmitted downstream due to their volatile prices and uncertain supply.
It is precisely under the strong push of the dual benefits of supply and demand (general increase in upstream raw materials, tight supply) and the sharp increase in the cost of key auxiliary materials that the cost pressure of the organic silicon industry has finally become concentrated in the midstream stage. It is reported that several leading domestic mainstream silicone rubber manufacturers, including Silicon Treasure, Star Silicon, Junchuan, Yiheng, Changlu, Baiyun, and Zhijiang, have recently announced that their product prices will be raised after March 11th, with increases ranging from 5% to 10%.
The concentrated price increase by leading companies in the industry this time is not only a passive measure taken by the companies themselves to digest cost pressure, but also regarded as a landmark signal by the industry - it marks the sustained high pressure of upstream raw materials finally transmitted to the middle and lower reaches of the industrial chain, and forms a concentrated pressure release here. The market generally expects that this action by leading enterprises is highly likely to trigger other downstream manufacturers of organic silicon to follow suit, thereby triggering a new wave of price increases across the industry and further exacerbating the cost transmission pressure on the entire industry chain.
From the perspective of changes in application fields, the market demand structure for silicone adhesive is undergoing profound adjustments. The photovoltaic industry has become an important growth pole. With the accelerated expansion of global solar energy production capacity, the demand for specialized sealants for photovoltaic modules continues to increase. It is expected that the global photovoltaic silicone market will develop rapidly at a compound annual growth rate of 7.8% from 2026 to 2032. The rise of dual glass modules and photovoltaic building integration has put forward higher requirements for the weather resistance and insulation of sealants. At the same time, the demand in the construction industry is undergoing a quality upgrade. Driven by the "dual carbon" goal, the door, window, and curtain wall industry is increasingly emphasizing the low-carbon and environmentally friendly properties of silicone structural adhesives. Some leading companies have launched bio based modified products, with a renewable material proportion of 30%, and the required durability life has been increased to over 20 years. The pursuit of building quality by homeowners is also driving product iteration towards high performance and long lifespan.
From a deeper perspective, this price fluctuation is not an isolated short-term phenomenon. Industry analysis believes that the wide fluctuations in prices of basic raw materials and the complex geopolitical risks are overlapping, profoundly reshaping the cost structure of the silicone adhesive industry and driving the industry into a new price adjustment cycle. For downstream fields such as photovoltaic module packaging, building curtain walls and door and window sealing, electronic appliances, and new energy vehicles, they may continue to face challenges brought by rising upstream costs in the coming period.
Looking ahead to the future, considering that it is difficult for the supply side to achieve a significant increase in volume in the short term, and the cost side still has strong support against the backdrop of high energy and chemical prices, especially under the macro policy tone of "ensuring supply and stable prices", although the market seeks stable operation, it is limited by the cost push and tight supply-demand balance pattern. The silicone rubber market will still have a clear upward trend in the subsequent market.