Recently, the significant surge in raw material prices has had a profound impact on the silicone market. In order to cope with the pressure of rising costs, downstream companies of organosilicon have launched price increase proposals, hoping to balance costs and profits by adjusting prices. This move has attracted widespread attention from the market.

On February 19th, the overall performance of the A-share market was strong, with the three major indexes collectively rising. Among them, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index have achieved varying degrees of gains. The organic silicon sector also performed well, closing up 1.39%. This market performance reflects that investors' confidence in the silicone market has not weakened due to the rise in raw material prices.
However, the soaring prices of raw materials have indeed brought considerable challenges to the silicone market. On the one hand, the increase in raw material costs has squeezed the profit margins of silicone enterprises; On the other hand, insufficient follow-up of downstream demand has exacerbated the supply-demand imbalance in the market. This has led to many difficulties faced by organic silicon enterprises in their operations.
In response to this challenge, individual factories have taken measures to reduce production in order to raise prices. This measure has to some extent alleviated the supply-demand contradiction, allowing the situation of sufficient pre-sale orders and tight spot prices to continue. However, this also brings greater cost pressure to midstream and downstream enterprises. In order to maintain normal operations, midstream and downstream enterprises have to cautiously chase after price increases and increase their holdings.
Despite facing many difficulties, the silicone market still shows strong growth potential. 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. This will bring more development opportunities and market space for organic silicon enterprises.