On February 17, 2025, the silicone industry welcomed its annual "good start". The phenomenon of spring restlessness has once again emerged, and practitioners are rushing towards peak season marketing in order to lay a good foundation for performance growth in the new year. Industry data shows that the scale of pre-sale orders in January may exceed 100000 tons, indicating a positive start for the industry.
Since resuming work after the Spring Festival, the main manufacturers in Shandong have sounded the horn of price increases, with the benchmark price of DMC (dimethyl cyclic siloxane) rising strongly by 800 yuan, reaching the 13400 yuan/ton mark. Subsequently, the three major conglomerates suddenly closed down and reset their pricing system on Wednesday. On Thursday, the leading DMC in Xinjiang surged to 13800 yuan/ton in a single day, driving second tier manufacturers to collectively rise above 13500 yuan. This series of actions indicates that the industry has reached a strategic consensus to reshape the market landscape through joint production cuts.

It is reported that the entire industry plans to improve the supply-demand relationship through an unprecedented joint production reduction of about 1.4 million tons. A staggered maintenance plan will be implemented in February and March, with an additional 20% reduction in production capacity based on the existing operating rate. This heroic decision to break his arm stems from 30 months of sustained losses, with individual factories losing an average of over 1500 yuan per ton and the industry losing over 10 billion yuan in cumulative losses.
Faced with the whirlwind of price increases, midstream and downstream enterprises are in a dilemma. Chasing price increases and stocking up may lead to price corrections, and waiting and watching may also result in missing the purchasing window. However, the strong signals released by the production side cannot be ignored. The raw material inventory of multiple individual factories has dropped to the 5-day warning line, and social inventory has sharply decreased by 42% year-on-year. This round of market trend is seen as a decisive battle, as the upstream alliance has set a phased target of 14000 yuan/ton and is aiming to return to a healthy profit range by 2025.
In terms of the silicon metal market, spot market transactions are relatively light, and polysilicon manufacturers have weak purchasing intentions. The overall production still shows a loose pattern, with the main contract price of 421 # in China reported at 11650-12750 yuan/ton, maintaining a stable trend after the holiday. Organic silicon monomer factories continue their rigid procurement model, and the overall market still maintains a high-yield pattern.