In 2025, the "race track competition" in the silicone industry has quietly begun. Faced with extreme cost control and homogenization of product lines, competition among silicone enterprises has become increasingly fierce. Recently, an internal letter from a certain silicone company revealed industry predictions that 2025 to 2027 will be a new round of elimination stage for the silicone industry.
The letter also pointed out that after experiencing a weak supply-demand pattern in 2024, the overall supply of the organic silicon industry will continue to exceed demand in 2025. However, although the demand side is growing slowly, the supply side is once again increasing production capacity on the basis of overcapacity, which will lead to further compression of profit margins. Faced with this dilemma, enterprises need to have firm confidence in growth and actively adapt to changes in the track.
Market data shows that at the beginning of the new year, the prices of several niche organic silicon products have shown an upward trend, especially the ethylene based double head series, which is in short supply and rising in price. This trend provides new opportunities for silicone enterprises, but at the same time, it also brings greater challenges. How to reduce costs and improve production efficiency while ensuring product quality has become an urgent problem for enterprises to solve.
In addition, there is no long-term maintenance plan for domestic individual factories in January 2025, and it is expected that the production will increase in that month. This may lead to increased pressure on the supply side in the short term, and individual factories may adopt price reduction sales strategies to accelerate inventory reduction and attract orders before the Spring Festival. However, this strategy may also lead to a pullback in DMC prices, bringing greater operational risks to the enterprise.
At the same time, changes in the international situation have also brought new challenges to the silicone industry. The updated list of "Chinese military related enterprises" by the US Department of Defense has restricted the business of listed companies in the international market. This is undoubtedly a heavy blow to silicone companies that rely on the international market.
In summary, there are both opportunities and challenges for the organic silicon industry in 2025 under the changing track. Enterprises need to closely monitor market trends and flexibly adjust their strategies to cope with the constantly changing industry environment. At the same time, strengthening technological innovation and product research and development, enhancing core competitiveness, is also the key for enterprises to cope with challenges and achieve sustainable development.