Entering 2025, the competition in the silicone industry is becoming increasingly fierce, and the race on the track has become an unavoidable topic within the industry. Recently, an internal communication from a leading organic silicon company revealed the severe challenges and potential opportunities facing the industry. The senior management of the company warns that the dual pressure of cost control and product homogenization will force the company to engage in more direct competition on the track, and between 2025 and 2027, the industry may experience a brutal elimination race.
Faced with a market pattern of oversupply, the senior management of the company pointed out that although the demand side maintains moderate growth, the significant expansion of the supply side will further compress profit margins. In this context, top enterprises with a large market share and stable cash flow need to demonstrate stronger adaptability and resilience, and respond to market changes through strategic adjustments.
Market monitoring data shows that at the beginning of the new year, prices of several niche organic silicon products have risen, with the ethylene based double head series being particularly prominent. The situation of supply shortage has driven up prices. This provides market opportunities for top enterprises, but also tests their supply chain management and cost control capabilities.
However, the pressure on the supply side cannot be ignored. With the reduction of maintenance plans for individual factories and the increase in production, the risk of oversupply in the short term has intensified. Before the Spring Festival, in order to accelerate inventory reduction and attract orders, some individual factories may adopt price reduction strategies, which undoubtedly increases the uncertainty of market prices.
In addition, changes in the international political environment 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, which undoubtedly increases their operational risks.
In summary, the silicone industry is in a fierce battle in 2025, and companies need to closely monitor market trends and flexibly adjust their strategies to respond to market changes. At the same time, strengthening technological innovation and supply chain management, and improving cost control capabilities will be the key for enterprises to maintain a leading position on the track.