With a positive outlook for the market in December 2024, competition is becoming increasingly fierce. Some individual enterprises still have a gap from their annual sales targets, and in the domestic market, the market share of foreign-funded enterprises continues to decline. The rise of independent brands and the development of alternative technologies have become key factors determining the outcome. In the individual field, many companies have joined the ranks of "expanding production", constantly raising the threshold for market competition.
Standing at the intersection of 2024 and 2025, let's review the price trends of the past year together. Overall, the price of DMC (dimethylcyclosiloxane) on the monomer side has experienced a rise from a starting point of over 14000 yuan/ton to a peak of over 16000 yuan/ton, and then fell back to a starting point of over 13000 yuan/ton with capacity expansion. Other monomer side products have also returned to their initial prices.
However, amidst this wave of price reductions, niche organic silicon products have risen against the trend, especially vinyl double heads, with an astonishing increase of 33%. From the lowest point of 49500 yuan/ton this year, it has skyrocketed to 73000-78000 yuan/ton, becoming the industry's "price king". In response, the main production enterprises stated that this is not simply a price increase, but an improvement in product quality.
In 2024, new stories are emerging in the silicone industry. On the one hand, the launch of the popular silicone leather series has opened up a huge market demand space; On the other hand, domestic individual giants have increased their downstream industry layout, launched product line competitions, significantly increased capital expenditures, and comprehensively accelerated the integration process of individual enterprise industrial chains.
Looking ahead to 2025, organic silicone leather is expected to experience an explosion in full terminal applications. Several industry experts predict that 2025 will be a crucial year for silicone leather to enter the mainstream market. Since Dow's global debut of silicone leather, after three years of market-oriented promotion, leading domestic manufacturers such as Serkai, Xingfa, Xin'an, Zheng'an, and Silicon Treasure have also launched a series of silicone leather products. Among them, Serkai has become a leading brand in the global silicone leather field with its 100% silicone raw material coating technology.
In addition, with the continuous improvement of basic technological capabilities, the application fields of silicone leather are expected to further expand, and the home decoration and automotive industries may become its most mainstream application forms. Under the promotion of the "trade in" policy, China's new energy vehicle market continues to rise, and the penetration rate of silicone leather in automotive interiors is expected to increase significantly.
In summary, the organic silicon industry will usher in new development opportunities and challenges in 2025, and the takeoff of new tracks may present the above-mentioned trends.