With the arrival of the Chinese New Year in 2025, the organic silicon market has ushered in new development opportunities. The January Caixin Service PMI data showed that although it decreased by 1.2 percentage points compared to the previous month, it still maintained an expansion range of 51, indicating an overall positive trend in the service industry. In this context, the organic silicon industry chain has also shown signs of recovery, especially with the full recovery and rise of DMC (dimethyl cyclic siloxane) prices after the holiday, injecting new vitality into the industry.
DMC, as a key raw material in the organic silicon industry chain, its price fluctuations directly affect the cost and profit of the entire industry. The price increase this time is mainly due to the improvement of supply and demand relationship. From the supply side, overseas organic silicon production capacity has entered a period of stagnation, while the peak of domestic expansion has ended, and the future supply increment is limited. This change enables domestic silicone enterprises to better control production capacity and avoid price wars caused by excessive competition. At the same time, domestic enterprises are constantly improving production efficiency and product quality to meet the market's demand for high-quality silicone products.
From the demand side, organic silicon products have a wide range of terminal applications, including electronics, power/new energy, construction, textiles, medical/personal care and other fields. With the recovery of the global economy and the rapid development of emerging industries, the demand for silicone products is also continuously increasing. Especially in the field of new energy, the demand for organic silicon materials is showing explosive growth. In addition, overseas demand is also growing rapidly, bringing new opportunities for China's organic silicon exports.
Against the backdrop of supply-demand balance, the price of organosilicon is expected to emerge from the trough and enter an upward trend. However, this does not mean that the industry can rest assured. On the one hand, enterprises need to continue to increase research and development investment, enhance product technology content and added value, in order to cope with increasingly fierce market competition; On the other hand, it is also necessary to strengthen the synergy of the industrial chain and achieve win-win development for upstream and downstream enterprises.
In addition, with the continuous improvement of environmental awareness, green, low-carbon, and sustainable development have become important trends in the organic silicon industry. Enterprises need to actively adopt environmentally friendly technologies and materials, reduce energy consumption and emissions in the production process, and promote the development of the industry towards green direction.
In summary, the organic silicon market will face new development opportunities and challenges in the new year. Enterprises need to keep up with market trends, strengthen technological innovation and industrial chain collaboration to achieve higher quality development.