Recently, the price increase in the silicone market has become a hot topic in the industry. Behind this trend is the combined effect of multiple factors such as soaring raw material prices and tense supply and demand relationships.
From the perspective of the raw material market, the significant increase in prices of some key raw materials has directly pushed up the production cost of organosilicon. The data shows that the price increase of these raw materials has exceeded 1000 yuan, which has had a significant impact on the price fluctuations of the silicone market. In order to cope with the pressure of rising costs, downstream companies of organosilicon have launched price increase proposals, hoping to maintain profitability by adjusting prices.

In terms of supply and demand, the silicone market has recently shown a situation of insufficient supply and demand. On the one hand, the gradual pace of production reduction by individual factories has led to a tight supply of spot goods; On the other hand, with the gradual recovery of construction in the real estate and construction industries, the demand for silicone rubber market is gradually recovering, and the procurement volume of silicone products such as 107 glue and silicone oil has increased. This supply-demand contradiction further exacerbates the trend of price increases.
It is worth noting that although midstream and downstream enterprises are cautious about price increases, individual factories have been stimulated by production cuts and price increases, and orders have been mostly scheduled until mid March. This indicates that the demand for silicone products in the market remains strong, providing strong support for price increases.
Looking ahead, with the gradual recovery of terminal demand and the digestion of inventory by midstream and downstream enterprises, the upward trend of the organic silicon market is expected to be further consolidated. Meanwhile, under the expectation of the traditional peak season in March, the prices of silicone products such as 107 glue and silicone oil will continue to remain firm, or steadily rise with DMC.