Bottom grinding adjustment of organic silicon market, industry transformation and game upgrading-Iota

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News > Dynamic industry > Bottom grinding adjustment of organic silicon market, industry transformation and game upgrading

Bottom grinding adjustment of organic silicon market, industry transformation and game upgrading

Since the beginning of this year, the silicone market has experienced a period of adjustment intertwined with wind and rain. Several industrial silicon factories in Xinjiang have successively shut down and reduced production, gradually implementing policies to stabilize market expectations. A senior executive of a single enterprise in Zhejiang also admitted that since the second quarter of this year, the price of organic silicon has been declining, and the company's losses have almost become a certainty. Despite the lack of innovation in the industry, it is not enough to be trapped in endless low price competition. It is entirely possible to explore new paths of mutual benefit and win-win outcomes.
As of December 18th, the overall operation of the silicone market has tended to be sluggish, with various product quotations at historically low levels. Among them, the price for Luxi hydrolysate is 12100 yuan/ton, the mainstream price for DMC spot is 12600-13700 yuan/ton, the price for raw rubber is 14000-14500 yuan/ton, the price for 107 rubber is 13500-14000 yuan/ton, the price for domestic silicone oil is 14800-16500 yuan/ton, and the price for imported silicone oil is 18500-19500 yuan/ton. On the raw material side, for example, 421 # metal silicon is reported at 12500-13100 yuan/ton, monochloromethane is reported at 2650-2750 yuan/ton, and high hydrogen silicone oil is reported at 7500-7800 yuan/ton. With the concentrated release of new production capacity in Shandong and Hubei this year, the cost pressure on top enterprises has eased, and the current stage of price bottoming out, coupled with the arrival of the replenishment season, is expected to gradually stabilize market prices.
However, the game between upstream and downstream has significantly intensified this week. Downstream demand sides expect a game space of 300-500 yuan/ton, but the overall willingness of individual factories to adjust prices is relatively low, and they are more inclined to maintain long-term cooperative customers. Overall, the pattern of oversupply has not improved, and the inventory pressure in the industry is still significant. Top individual factories such as Hesheng, Xingfa, and Dongyue maintain high-level production, while some manufacturers undergoing equipment maintenance maintain low-level operation. The market supply-demand game is still ongoing.
Faced with fierce market competition, the silicone industry has gradually realized that relying solely on a single advantage in products or technology is no longer sufficient to establish a foothold in the market. Comprehensive multidimensional competition is the key to the development of the industry. With more and more cross-border companies entering the market, the industry landscape has undergone significant changes. After experiencing the brutal survival of the fittest from 2024 to 2026, the market may enter a stable stage of gradually recovering profitability.
The dilemma of silicone manufacturing is becoming increasingly prominent. Recently, the news of a large silicone product OEM factory shutting down has attracted industry attention. It is widely believed in the industry that the customized OEM model is subject to brand and order control, and the profit margin is shrinking year by year, which forces silicone manufacturing companies to extend upstream and lay out their own brands and order taking capabilities. With the decrease in OEM orders, transformation and upgrading have become the key to the survival of the entire industry chain.
In terms of the domestic silicone oil market, there has been no significant change in the loose supply pattern, but cost end products such as DMC D4、 Hydrolyzed materials have shown a downward trend, and market prices are stabilizing. The current mainstream quotation for domestically produced methyl silicone oil is 14800-16300 yuan/ton. Although inventory pressure still exists, leading companies have begun to slightly increase prices by 100-200 yuan/ton, indicating a rebound in market confidence.
Imported silicone oil is still supported by high-end demand despite the reduction in quantity. The price drop caused by inventory clearance before the year is limited. Currently, the price of methyl silicone oil is quoted at 18300-18900 yuan/ton, with a decline of about 200-300 yuan/ton. The overall market has a strong wait-and-see sentiment, but in the medium to long term, the industry landscape is expected to gradually optimize.
In terms of silicone oil cracking, due to the continuous weakening of downstream demand and the low stocking willingness of end enterprises, the overall market sentiment is pessimistic. This week, the price of silicone oil for cracking materials is 12500-13800 yuan/ton (including tax). Production enterprises generally have low operating rates, and some enterprises plan to shut down. The current combination of weak demand and high inventory creates pressure, and the market is still in a period of low-level adjustment.
Looking ahead to the future, the organic silicon industry still needs to address challenges through structural optimization, innovative upgrading, and full industry chain collaboration in complex internal and external environments.

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