On November 19, 2025, boosted by industry joint production cuts, the silicone market experienced significant fluctuations. According to Caixin News Agency, at the "2025 High Quality Development Seminar for Methyl Chlorosilane Enterprises" held on November 18th, major domestic organic silicon enterprises reached a consensus to reduce the overall operating rate of the industry by 30% from early December, and set the price target for DMC (Dimethyl Cyclosiloxane Mixture) at over 13500 yuan/ton. After the meeting, most individual factories quickly resumed quoting, and the DMC price was raised to 13200 yuan/ton, an increase of 100 yuan/ton from the previous day. Downstream products such as 107 rubber, raw rubber, and silicone oil also rose synchronously, with a cumulative increase of 1700-2200 yuan/ton.


This production reduction action is regarded by the industry as a key measure to combat internal competition. Since 2022, the rapid expansion of domestic organic silicon production capacity has led to an imbalance between market supply and demand, resulting in sustained low prices. Taking DMC as an example, its price has dropped from a high of 60000 yuan/ton in October 2021 to below 11000 yuan/ton in June 2024, severely compressing industry profits. Leading companies such as Hesheng Silicon Industry and Dongyue Silicon Materials faced pressure on their performance in the first three quarters, with Hesheng Silicon Industry losing 321 million yuan in net profit attributable to its parent company, while Dongyue Silicon Materials' net profit plummeted by 96.78% year-on-year.


Analysts point out that if the production reduction plan is successfully implemented, DMC prices are expected to exceed the target of 13500 yuan/ton within half a month, promoting the industry to shift from "production based sales" to "production based sales" and easing long-term vicious competition. According to Xing Nianrui, an analyst at Longzhong Information, the current market is still in the stage of upstream and downstream game. The upstream has a strong willingness to raise prices, but the downstream has a low acceptance of high prices. The short-term price trend needs to observe the actual transaction situation. However, with the continuous growth of demand for high-end organic silicon materials in fields such as new energy and photovoltaics, the industry's long-term positive trend remains unchanged.