In 2025, the organic silicon industry has reached an important turning point in the dawn of the new year. With the gradual recovery of the market after the Spring Festival, a new wave of price increases is sweeping across the entire industry. From DMC to 107 adhesive, and then to raw rubber and silicone oil, the prices of major product lines have risen one after another, attracting widespread attention.
Looking back at the past year, the silicone industry has experienced an unprecedented price war. However, with the arrival of 2025, the expectation of price wars within and outside the industry remains strong. But at the same time, industry dividends have also become the focus of attention for enterprises. The expectation of economic stability or recovery has gradually changed the mindset of practitioners, no longer using cold winter thinking to judge industry trends.

In the downstream application layer, it is expected to usher in a situation of a hundred flowers blooming and a hundred schools of thought competing in 2025. The competition between domestic and international brands has intensified, and emerging fields such as silicone leather have become hot topics for enterprises to chase after. International brands such as Dow, Shinetsu, and Wacker are constantly innovating, while domestic brands are also making continuous efforts to occupy a place in this emerging market.
However, despite the broad market prospects, the silicone industry still faces many challenges. The price war in 2024 has led to diminishing marginal utility, domestic demand remains insufficient, and overseas market pressure is increasing day by day. Therefore, the competition intensity in 2025 will be the "enhanced version" of 2024. To address this challenge, multiple companies in the industry have begun to seek the realization and implementation of their brand, technology, and value.
In the first week after the Spring Festival, the silicone industry experienced a spring frenzy. After 30 months of continuous losses, major factories have taken measures to reduce production and conduct maintenance to cope with the sluggish market. The main manufacturers in Shandong have sounded the horn of price increase, and the DMC benchmark price has risen strongly by 800 yuan, reaching the 13400 yuan/ton mark. Subsequently, the three major conglomerates suddenly closed down and redefined their pricing system, driving up prices in the entire market.
According to insiders, the entire industry has reached a strategic consensus to reshape the market landscape by jointly reducing production by 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. The determination of this brave warrior to break his wrist stems from 30 months of continuous 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 end 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 means that this round of price increases is not groundless, but has a solid market foundation.
In the DMC market, overall transactions are active, with mainstream market prices remaining stable at 13400-14000 yuan/ton. Although individual manufacturers have recently raised their factory quotes across the board, the slow recovery of terminal demand has not improved. However, the quotes from industry leaders remain firm at 13800 yuan/ton, demonstrating their confidence in the market outlook.
The 107 glue market is showing a regional upward trend in prices. The transaction price in the North China market increased by 300 yuan/ton, and both the East and South China markets achieved an increase of 500 yuan/ton. Affected by the continuous strengthening of raw material costs, coupled with favorable macroeconomic policies, the market supply and demand pattern presents a tight balance. This allows leading companies to digest inventory pressure by raising prices.
In terms of the silicone oil market, the current exchange rate for conventional silicone oil in the East China region remains in the range of 15300-16200 yuan/ton. Although spot prices remain strong, the market trend is affected by fluctuations in prices of related enterprise products, showing a characteristic of oscillation and rebound. The pressure of accumulated inventory in the industry continues to ease, coupled with the expectation of sufficient supply in the long term, forming a situation of mixed long and short positions. This has caused the price of silicone oil in the market to rise amidst fluctuations.
The raw rubber market maintains a stable to strong pattern. The mainstream brand prices have been increased by 200-300 yuan/ton to the range of 14500-14800 yuan/ton compared to the previous period. Leading manufacturers opened high and rose to 14500 yuan/ton, boosting the trading atmosphere in the spot market. However, the resumption pace of downstream enterprises after the holiday is still unclear, and coupled with the lack of significant increase in new orders, market participants generally hold a cautious attitude.
Overall, this round of price hikes reflects that the silicone industry is undergoing profound changes. From price wars to brand, technology, and value enhancement, enterprises need to constantly adapt to market changes and seek new development opportunities. And this round of price increases is not only a deep rewriting of the industry ecology, but also a test of the strength and strategic vision of enterprises. In the future, with the intensification of market competition and the continuous changes in consumer demand, the silicone industry will face more severe challenges and opportunities.