This week, the domestic silicone market experienced a long-awaited general rise, with major monomer manufacturers raising product prices one after another. Prices of major categories such as DMC (important silicone monomer), silicone oil, 107 glue, and raw glue rebounded across the board, with cumulative increases generally exceeding 1000 yuan/ton. Among them, a large single unit factory in Shandong has raised the ex factory price of DMC by 1300 yuan/ton, which has attracted widespread market attention.

Behind this price increase is a significant improvement in the supply and demand pattern. On the demand side, with the gradual recovery of downstream industries such as photovoltaics, new energy, and construction, as well as the arrival of the traditional peak season of "gold, silver, and four", the consumption of organic silicon continues to grow. On the supply side, there is a tightening trend, with some companies reducing their load in the early stages leading to low inventory levels, while industry production cuts and maintenance have also tightened production. In addition, multiple companies have joined the production reduction sequence, and the industry's operating rate has fallen below 65%. The inventory cycle of mainstream individual factories has been compressed to 7-10 days, and the elasticity of spot supply is approaching zero.
In terms of cost support, the prices of industrial silicon and other raw materials have stabilized, further consolidating the bottom line of organic silicon costs. Industry insiders believe that this round of price increases is an important sign of the market bottoming out and rebounding, as well as an inevitable result of the industry's capacity reduction and structural adjustment. With the acceleration of the supply-demand rebalancing process, the silicone market is expected to usher in a new round of price recovery cycle and brand reassessment.
Looking ahead, with the global transition to green energy and the upgrading of China's high-end manufacturing industry, the average annual growth rate of organic silicon consumption is expected to remain at 6% -8%. By 2025, the doubling of domestic photovoltaic installed capacity and new energy vehicle production will directly drive the demand for products such as silicone rubber and sealants. Coupled with the trend of overseas capacity transfer, the organic silicon industry may usher in new development opportunities.