In February 2025, there was a wave of price increases in the DMC market. Since resuming work after the Spring Festival, the main manufacturers in Shandong have sounded the horn of price increases, and the DMC benchmark price has risen strongly. Subsequently, the three major conglomerates closed down and redefined their pricing system, driving the entire market to follow suit and rise. This series of actions not only led to a rapid increase in DMC prices, but also plunged the entire silicone industry into unprecedented turmoil.

It is understood that behind this wave of price increases is a consensus reached by the entire industry to jointly reduce production. In order to reshape the market landscape and improve the supply-demand relationship, the entire industry plans to jointly reduce production by about 1.4 million tons. This measure will implement a staggered maintenance plan in February and March to further reduce production capacity. After 30 months of sustained losses, the industry has finally decided to take a heroic step to achieve a healthy profit range.
Faced with the whirlwind of price increases, midstream and downstream enterprises are in a dilemma. On the one hand, chasing price increases and stocking up may face the risk of price correction; On the other hand, waiting and observing is also afraid of missing the procurement window. However, the strong signals released by the production end cannot be ignored. The raw material inventory of multiple individual factories has dropped below the warning line, and social inventory has sharply decreased year-on-year. This round of market trend is seen as a decisive battle, and the upstream alliance has set phased goals and is aiming to return to a healthy profit range by 2025.
In this context, the transaction activity of the DMC market has significantly increased. Despite the slow recovery of terminal demand, the market continues to have a strong speculative atmosphere. The quotations of industry leading enterprises have become a market indicator, leading the overall trend of the market. However, whether this round of price hikes can truly reshape the industry ecosystem remains to be tested by time.