Recently, the silicone market has shown a clear stable trend, with major manufacturers adjusting their strategies and no longer indulging in the quagmire of price wars. Instead, they actively seek innovation and strive to open up new development paths through technological and product upgrades, leading the industry towards a new stage of high-quality development.
Since the second half of 2024, leading enterprises in the field of organic silicon such as Hesheng, Xinghuo, Xin'an, Xingfa, Dongyue, etc. have begun to explore new development models centered on quality and innovation. These enterprises no longer use price as the only competitive tool, but pay more attention to technology research and product quality in order to stand out in the fierce market competition.
In terms of market prices, the quotations for organic silicon related products remain stable. Specifically, the mainstream spot price of DMC (dimethyl cyclic siloxane) is between 12800-13700 yuan/ton, while the mainstream spot price of raw rubber is between 14000-14700 yuan/ton. The mainstream spot price of 107 rubber is also stable between 13500-14000 yuan/ton. This stable price trend provides a more favorable business environment for enterprises and also encourages them to pay more attention to brand and quality construction.
At the same time, the silicone industry chain has also ushered in new opportunities for transformation and upgrading. With the increasing demand of consumers for product quality, the silicone product market is showing a trend of branding and differentiation. In order to meet market demand, brand operators and contract manufacturers have increased their research and development investment, enhanced their product innovation capabilities, and strived to occupy a place in the fierce market competition.
In terms of cross-border marketing of silicone products, competition is equally fierce. In order to reduce costs and improve supply chain efficiency, contract factories continuously optimize production processes, strengthen brand building, and win recognition from more international markets. In addition, with the continuous changes in the global trade pattern, silicone foundries also need to closely monitor the dynamics of the international market and flexibly adjust their export strategies to cope with potential market risks.
It is worth mentioning that Vietnam has recently established a new silicone company, focusing on the field of adhesives, with products covering functional materials such as silicone gel, conductive, heat-conducting, and shielding. The establishment of this new company not only injects new vitality into the Vietnamese silicone market, but also brings new opportunities for the development of the global silicone industry chain.
However, in the context of the global economy, not all industries are maintaining an optimistic growth trend. Taking the global automotive manufacturing industry as an example, the significant decline in car production in Italy by companies such as Stellantis reflects the severe challenges and profound changes in the global automotive market. This trend also reminds enterprises in the silicone and silicone industry chain to be more sensitive to changes in market demand, and flexibly adjust product structure and market strategies.
In addition, the global shipping industry is also undergoing profound changes. With the decrease in demand for large vessels in the market and the increase in risk factors, ship owners have begun to turn to ordering smaller vessels. This change not only reflects the shipping industry's keen insight into market demand, but also indicates that the future shipping market will be more diversified and flexible. For enterprises in the organic silicon and silicone industry chain, this is both a challenge and an opportunity, requiring them to closely monitor market trends and flexibly respond to various changes.
In summary, the silicone market and silicone industry chain are facing new development opportunities and challenges. Enterprises need to closely monitor market dynamics and industry trends, strengthen technology research and development and brand building, enhance product innovation capabilities to adapt to constantly changing market demands. At the same time, the government and relevant institutions also need to strengthen policy guidance and support to promote the industry towards high-quality development.