Industry Coordination Cuts Production to Support Prices, Silicone DMC Surges 20%-Iota

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News > Dynamic industry > Industry Coordination Cuts Production to Support Prices, Silicone DMC Surges 20%

Industry Coordination Cuts Production to Support Prices, Silicone DMC Surges 20%

In November 2025, the silicone industry saw a wave of “anti-internal competition” initiatives. Mid-November, mainstream domestic monomer producers held an industry meeting and reached a consensus to reduce operating rates by 30%, with plans to implement the cuts in early December. Previously, due to the surge in production capacity in 2024, DMC prices had fallen to around 11,000 RMB/ton, near the cost line, plunging the entire industry into losses. Following the production cut consensus, the market reacted quickly: on November 13, DMC prices jumped 1,500 RMB/ton in a single day, and by November 21, the East China market price had reached 13,200 RMB/ton, a rise of over 20% from early November. Multiple companies simultaneously implemented halted reporting, capped order, and limited acceptance modes, and subsequent supervisory mechanisms will be refined through meetings of actual controllers to prevent chaotic “preemptive” actions. Coupled with overseas capacity reductions, such as Dow Chemical closing its UK plant, the supply-demand balance continues to optimize, potentially ending more than two years of industry downturn.

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