Industry Collaboration Fights “Internal Competition,” Prices Soar 20% in a Single Month-Iota

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News > Dynamic industry > Industry Collaboration Fights “Internal Competition,” Prices Soar 20% in a Single Month

Industry Collaboration Fights “Internal Competition,” Prices Soar 20% in a Single Month

The two-year downturn in the silicone industry may be coming to an end, as frequent “anti-internal competition” moves in November have triggered a price rebound. Since the production expansion wave that began in 2021, the industry saw a surge in capacity, leading to fierce low-price competition. In November, Luxi Chemical and Hesheng Silicon led industry meetings, reaching a consensus on “cutting production by 30% + raising prices to 13,500 RMB/ton,” and also established a production reduction supervision mechanism.

International giants followed suit, with Dow Chemical announcing a 10–20% price increase on Xiameter product lines in Greater China starting in December. Supported by this shift in supply and demand, as of November 21, the East China market price of silicone DMC rose to 13,200 RMB/ton, up 20% from early November, and the industry’s average gross profit increased by 2,650 RMB/ton. Analysts predict that a supply-demand gap will emerge in 2025, and mismatches in 2026 may further drive prices upward.

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