On October 11, 2025, Shanghai, China - Recently, the domestic organic silicon market prices have continued to rise, with DMC (dimethyl cyclic siloxane mixture) prices rising by more than 12% compared to the beginning of the month, and mainstream quotations exceeding 20000 yuan/ton, setting a new high for the year. According to monitoring by Baichuan Yingfu, some individual factories have once again raised DMC prices by 500 yuan/ton this week, exacerbating the tight supply situation in the market and showing a significant trend of industry recovery growth.


Reversal of supply and demand pattern, strong price rebound
Since 2025, the organic silicon industry has undergone a deep adjustment. In the first half of the year, due to overcapacity, DMC prices fell below 17000 yuan/ton, putting pressure on corporate profits. However, with the power restrictions in Yunnan leading to a 40% reduction in industrial silicon production, coupled with the proactive reduction and control of production by top enterprises, the market supply and demand relationship has gradually reversed. Data shows that in August 2025, the import volume of primary form polysiloxane of organosilicon in China decreased by 8.75% month on month, while the export volume increased by 3.66% month on month, indicating that while domestic supply tightened, overseas demand steadily rebounded.


The current price rebound is the dual result of supply-demand mismatch and cost transmission, "said an analyst from Zhongyan Puhua. Yunnan's power rationing triggered the industry's" cost pressure test, "while downstream demand in areas such as photovoltaics and new energy continued to release, driving prices into an upward channel. For example, the production capacity of photovoltaic encapsulation adhesive has increased by 300% in two years, and the application of medical grade liquid silicone rubber (LSR) in insulin pumps has grown by 500%, both becoming the core engines of demand growth.


Empowering emerging fields and accelerating high-end transformation
Organic silicon materials are transitioning from traditional sealants to high-end functional materials. At the 3rd Organic Silicon Technology and Application Innovation Forum in 2025, experts revealed that the localization rate of thermal conductive materials for 5G base stations has exceeded 80%, and the penetration rate of organic silicon interface materials in the medical and health field has exceeded 30%. In addition, the world's first 10000 ton bio based silicone rubber production line has been put into operation in Shandong, reducing costs through the technology of producing highly active silane from rice husks, marking the industry's transformation towards green and sustainable direction.


The requirements for material performance in emerging fields are much higher than those in traditional markets, "said Song Wenpeng, manager of the Eken Organic Silicon (Guangdong) R&D Center. The company's selective bonding of liquid silicone rubber has achieved a breakthrough from single metal bonding to special substrates, and will focus on fields such as medical implant materials and shape memory silicone rubber for intelligent robots in the future.


Industry warning: coexistence of resource game and policy constraints
Despite the market's recovery, the industry still faces multiple challenges. The "Extreme Risk Simulation Report on the Organic Silicon Industry Chain" by Zhongyan Puhua pointed out that regional energy constraints (such as power restrictions in Yunnan) may reconstruct the national production capacity map, while the EU's "carbon footprint tracing" investigation on Chinese photovoltaic adhesive products requires companies to accelerate the layout of low-carbon processes. The Ministry of Industry and Information Technology's "Action Plan for High Quality Development of New Materials Industry in the 15th Five Year Plan" clearly states that the energy consumption of newly built single units must be 20% lower than the industry average, which forces enterprises to upgrade their technology.


The next three years will be a critical period for reshaping the industry landscape. Industry insiders say that companies with vertical integration capabilities (such as self owned metal silicon smelters) and high-end product certifications (such as medical grade and electronic grade) will dominate.