On February 6, 2025, the Caixin Service PMI data showed that the index was 51 in January, although it decreased slightly by 1.2 percentage points month on month, it still remained in the expansion range. Under the promotion of high-quality development conferences across the country, the organic silicon industry has ushered in new opportunities for high-quality development. Especially DMC (Dimethyl Cyclosiloxane), a key product in the organic silicon industry chain, resumed trading on the first trading day after the holiday, with the national mainstream average transaction price reaching 12850 yuan/ton, an increase of 100 yuan/ton from before the holiday.
The increase in DMC prices this time is partly due to the festive atmosphere, which has led to a slight fluctuation and upward trend in the contract prices of top individual enterprises; On the other hand, the spot market prices have also followed the cautious trend, with the mainstream price range being between 12700-13300 yuan/ton. Although most downstream companies have not yet resumed operations on the first working day after the holiday and market demand is in a sluggish state, this price increase trend is still seen as an important signal of industry recovery.
Research institutions have pointed out that the price of organic silicon has been hovering at the bottom of the cycle since 2023, and in the future, with the gradual improvement of supply and demand, the price is expected to enter an upward channel. Overseas production capacity has entered a period of stagnation, and the peak of domestic expansion has also ended. The future supply increment is limited. On the demand side, organic silicon products are widely used in terminal applications, with strong resilience in domestic demand and rapid growth in overseas demand. The change in supply and demand pattern has brought new development opportunities for the silicone industry.
Specifically, downstream products of organosilicon are mainly divided into five categories: room temperature adhesive, high-temperature adhesive, liquid adhesive, silicone oil, and silicone resin, which are widely used in various fields such as electronics, power/new energy, construction, textiles, medical/personal care, industrial additives, and transportation. According to SAGSI statistics, the consumption of organic silicon in China has increased from 1.15 million tons in 2019 to 1.85 million tons in 2023, with an average annual compound growth rate of 12.7%. It is expected that the growth rate of domestic organic silicon consumption will remain at around 11% in the next three years, and the consumption is expected to exceed 2.3 million tons by 2025.