In October 2025, the organic silicon market will experience significant price fluctuations. According to industry monitoring data, the price of DMC (dimethyl cyclic siloxane mixture) has been rising for three consecutive weeks since late September. The mainstream quotation in East China has exceeded 12000 yuan/ton, an increase of 15% from the beginning of the month. The prices of derivatives such as silicone oil and raw rubber have risen synchronously, with some high-end products experiencing a weekly increase of over 8%.


Changes in supply and demand patterns drive price increases
Industry analysis indicates that this round of price increase is mainly driven by three factors:


Supply side contraction: Overseas giant Dow Chemical announced the closure of 145000 tons of DMC production capacity at its Barry plant in the UK, coupled with high energy costs in Europe leading to production cuts in many countries, widening the global supply gap for organic silicon intermediates.
Demand side recovery: There is strong demand in domestic fields such as new energy, electronic appliances, and automobile manufacturing, especially in emerging application scenarios such as silicon carbon negative electrode materials for lithium batteries and photovoltaic adhesives, which are accelerating their growth.
Cost side support: The prices of raw materials such as silicon metal and methanol remain high, coupled with stricter environmental policies leading to some small and medium-sized enterprises suspending production for rectification, further pushing up production costs.
Industry concentration increases, benefiting leading enterprises
With the withdrawal of overseas production capacity, the global market share of Chinese silicone enterprises continues to expand. At present, domestic DMC production capacity accounts for over 70% of the global total, and leading enterprises have formed a competitive advantage in the high-end product field through technological upgrades and industrial chain integration. A large enterprise recently announced investment in the construction of a high-end organic silicon project with an annual output of 10000 tons, focusing on high value-added fields such as electronic packaging and medical grade silicone rubber.


Future prospects
Analysts believe that in the short term, the price of organic silicon will remain strong, but caution should be exercised against changes in downstream acceptance of high priced raw materials. In the long run, the industry will develop towards "high-end, differentiated, and green" direction, and enterprises with full industry chain layout and technological innovation capabilities are expected to continue to lead.