In December 2025, the organic silicon industry will gradually improve the market supply and demand relationship through a series of "anti involution" measures, and the prices of core products will show a stable to strong trend. According to industry monitoring data, as of mid December, the mainstream price range for organic silicon DMC (dimethyl cyclic siloxane mixture) has climbed to 13500-14800 yuan/ton, an increase of over 1000 yuan/ton compared to early November. Pre sale orders from top companies have even been scheduled until January 2026, demonstrating market confidence in the healthy development of the industry.


Industry self-discipline reduces production, supply shrinks into price drivers
The direct cause of this price rebound is the industry's proactive reduction in production. On November 18th, the "High Quality Development Seminar for Methylchlorosilane Enterprises" hosted by the China Fluorosilicon Organic Materials Industry Association was held in Shanghai. The actual controllers of leading enterprises in the industry collectively attended and agreed on production reduction targets. The meeting explicitly proposed measures such as reducing equipment load by 30% to optimize production capacity structure and avoid vicious price competition. This measure has quickly taken effect. Since December, the operating rates of enterprises in major production areas such as Shandong and Zhejiang have significantly decreased, and the supply of DMC has contracted. Coupled with the cost support of rising raw material silicon prices, prices have steadily increased.


The demand differentiation is obvious, and there is a strong demand for replenishment in the construction industry
Although overall demand has not fully recovered, segmented fields have shown differentiation. Due to the year-end rush demand in the construction industry, replenishment orders have increased by 15% month on month, becoming the main driving force behind current prices; However, emerging application fields such as photovoltaic adhesives are affected by seasonal factors, resulting in weak short-term demand. However, with the acceleration of global energy transition, the long-term demand for organic silicon materials in industries such as photovoltaics and new energy vehicles is still optimistic. For example, companies such as Hesheng Silicon Industry are accelerating the layout of downstream high value-added products, extending into high-end fields such as new energy and electronics, opening up new growth opportunities for the industry.


Leading by top enterprises, continuous optimization of industry ecology
In the process of industry self-discipline, top enterprises have played a key role. Luo Liguo, Chairman of Hesheng Silicon Industry, previously stated that the company actively responds to the call for "anti involution" and promotes the industry's transformation from "quantity" to "quality" through technological innovation, cost optimization, and market order maintenance. Data shows that the production capacity of organic silicon monomers in Hesheng Silicon Industry has reached 1.73 million tons per year, accounting for nearly 20% of the global market share. Its pricing strategy has a guiding significance for the market. In addition, industry associations provide decision-making references for small and medium-sized enterprises by organizing closed door meetings and issuing cost line guidelines, helping to promote rational competition throughout the industry.


Future outlook: Prices may remain high and industry concentration may increase
Analysts pointed out that the current price of organic silicon has exceeded the cost line, and the profit margin of enterprises has improved, but the downstream acceptance of high prices still needs to be observed. It is expected that the industry will maintain a pace of production cuts before the first quarter of 2026, and prices are expected to remain high under the dual effects of cost support and supply contraction. In the long run, with the clearance of outdated production capacity and the expansion of leading enterprises, the industry concentration will further increase, and enterprises with technological, cost, and scale advantages will dominate the market, promoting the organic silicon industry to move towards a new stage of high-quality development.