With the arrival of spring, the silicone market has also entered a period of turbulence. The significant surge in raw material prices has led to a sharp increase in cost pressure for silicone enterprises. In response to this challenge, downstream companies of organosilicon have launched price increase proposals, hoping to protect their profit margins by adjusting prices.

On February 19th, the strong performance of the A-share market undoubtedly injected a shot in the arm into the silicone market. The three major indexes collectively rose, with over 4600 individual stocks in the market floating red. Among them, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index have achieved varying degrees of gains. The organic silicon sector also followed closely, closing up 1.39%.
Industry insiders believe that the current market is in a window period of spring turbulence. The improvement in domestic economic and policy expectations has provided a favorable operating environment for the market. However, against the backdrop of soaring raw material prices, the operation of the silicone market also faces many challenges. On the one hand, insufficient follow-up of downstream demand has exacerbated the supply-demand imbalance in the market; On the other hand, the pace of production reduction by individual factories is gradually increasing, with sufficient pre-sale orders and a continued shortage of spot goods.
Despite facing many challenges, the silicone market still shows strong growth potential. It is understood that the second round of upward trend may begin in the near future. After another wave of restocking, midstream and downstream enterprises have become more cautious in chasing price increases and adding more inventory. However, under the stimulation of reduced production and price increases, individual factories have basically placed orders until mid March. This demonstrates the strong demand for organic silicon products in the market.
In the future, with the further recovery of terminal demand and the gradual digestion of inventory by midstream and downstream enterprises, the upward trend of the organic silicon market is expected to be stabilized. At that time, individual factories are expected to achieve the expected target price, bringing a more stable development trend to the market.