On November 21, 2025, Yongxiu, China - At the recent "High Quality Development Seminar for Methyl Chlorosilane Enterprises", the domestic silicone industry reached a key consensus: starting from early December, the industry's operating rate will be reduced by 30%, and the price target for DMC (Dimethyl Cyclosiloxane) will be set at 13500 yuan/ton or more, striving to achieve it within half a month. Affected by this policy, organic silicon concept stocks collectively rose on November 19th, with Hesheng Silicon Industry and Chengguang New Materials hitting the daily limit up, followed by Dongyue Silicon Materials and Silicon Treasure Technology, significantly boosting market confidence.


Industry background and policy drivers
In recent years, the organic silicon industry has faced challenges such as overcapacity and intensified low price competition. According to Global Organosilicon Network monitoring, DMC prices fell below 11000 yuan/ton in the third quarter of 2025, severely compressing the profit margins of enterprises. To reverse the situation, the National Development and Reform Commission, in conjunction with industry associations, is promoting supply side reform, optimizing the industrial structure through measures such as restricting disorderly expansion and guiding technological upgrading. The "production restriction and price protection" strategy proposed at this seminar aims to gain space for long-term high-quality development through short-term supply and demand adjustments.


Market response and enterprise dynamics
After the policy was introduced, top enterprises responded quickly. Hesheng Silicon Industry announced a reduction in DMC production starting from December and a simultaneous increase in quotation to 13500 yuan/ton; Thanks to its advantage in specialty silane products, Chenguang New Materials has hit the daily limit up three times within four days, becoming the leading force in this round of market growth. At the same time, Jiangxi Yongxiu, as the core base of the domestic organic silicon industry, relies on a complete industrial chain to attract multiple enterprises to increase investment. The local government stated that it will support enterprises in developing high-end products through the "Organic Silicon Innovation Award Fund" to reduce dependence on the low-end market.


Expert opinions and future prospects
Xiao Jinsong, Director of the Materials Industry Research Institute at CCID Research Institute of the Ministry of Industry and Information Technology, pointed out that this supply side reform is a key step for the industry to transform from "scale expansion" to "value creation". He expects that with the increasing demand for high-end materials such as biobased silicone rubber and medical grade liquid silicone, the market size of organosilicon is expected to exceed 200 billion yuan by 2026. However, companies need to accelerate technological iteration to cope with international standard challenges such as the EU's "carbon footprint tracing". The AI component design model developed by the team from the School of Materials Science and Engineering at Shandong University has entered the industrialization stage, which can shorten the research and development cycle of new materials by 50% and provide new tools for industry innovation.