As the Chinese New Year approaches, the organic silicon market is also facing new opportunities and challenges. Before the holiday, although the market performance was slightly sluggish, the low-level stocking behavior of midstream and downstream enterprises brought a touch of warmth to the market. Individual factories are busy with the delivery of pre-sale orders, and some companies' orders have even been scheduled until mid February.
From the supply side, the new production capacity of the organic silicon industry will significantly slow down in 2025, which will help improve the industry's supply pattern. However, due to the incomplete release of the newly added production capacity in 2024, there is still an excess of domestic organic silicon production capacity. However, upstream enterprises have begun to reflect on their past competitive strategies and gradually formed a consensus of "anti involution", seeking a more stable and sustainable development path.
On the demand side, the continued easing of real estate policies has brought a glimmer of recovery to the construction sealant market. Meanwhile, the rapid development of the photovoltaic industry has also provided new growth points for the organic silicon market. In addition, with the steady expansion of the global electronic packaging materials market, the organic silicon industry has also ushered in new development opportunities.
However, the tariff executive order signed by Trump has brought new uncertainty to the silicone market. Faced with this challenge, Chinese silicone enterprises need to actively respond, fully utilize their own advantages, and flexibly adjust their market strategies.
Overall, although the organic silicon market is still in a period of industry clearance by 2025, the trend of steady growth in terminal demand remains unchanged. It is expected that the market will experience a range oscillation under weak supply-demand balance in the first week after the holiday, but the market is still expected to have a good start. Market participants should closely monitor market dynamics in order to adjust their strategies in a timely manner, seize new opportunities, and respond to new challenges.