On November 13, 2025, the organic silicon market ushered in an "epic market" - DMC (dimethyl cyclic siloxane mixture) prices surged by 1500 yuan/ton in a single day, rising to 12500 yuan/ton, the largest single day increase in nearly three years. Multiple individual factories urgently shut down and limited orders, causing market sentiment to explode instantly. Behind this price fluctuation is a comprehensive upgrade of the industry's "anti internal competition" strategy: 17 major domestic enterprises jointly announced a 30% reduction in production and will hold a meeting of actual controllers on November 18th to further consolidate the consensus on price support.


The reversal of supply and demand pattern, with leading companies dominating the market
On the supply side, leading enterprises such as Hesheng Silicon Industry (with a production capacity of 1.73 million tons), Xingfa Group (with a production capacity of 600000 tons), and Xin'an Shares (with a production capacity of 500000 tons) have made unprecedented efforts to reduce production, coupled with continuous inventory digestion, resulting in a sharp decrease in market supply. On the cost side, the photovoltaic industry's "anti internal competition" action has boosted the rebound of industrial silicon prices, providing support for organic silicon. Previously, the average price of DMC had been hovering at a low level of 11200 yuan/ton for a long time, and the industry had suffered losses for three consecutive years, indicating an urgent need for cost repair. On the demand side, it presents a dual wheel drive of "domestic high growth+European substitution": domestic demand for new energy and photovoltaics maintains a growth rate of over 20%, and apparent demand in the first three quarters increased by 20% year-on-year; In the international market, Dow Chemical has closed its UK factory (which accounts for 30% of Europe's production capacity), and China's export share is expected to further increase.


The capital market has reacted strongly, with funds pouring into leading stocks
On November 13th, the A-share organic silicon sector surged collectively, with a rise of 5.56%. More than 10 stocks, including Xin'an Shares and Tianci Materials, hit the daily limit up, while Fuxiang Pharmaceutical saw a daily increase of over 20%. According to the flow of funds, the main net inflow of the sector exceeded 3.2 billion yuan on the same day, with leading companies such as Tianci Materials (1.749 billion yuan) and Hesheng Silicon Industry (333 million yuan) grabbing funds. The futures market is synchronized and linked, with a single day increase of 3.66% for chemical ETFs, and the market is betting on the continuation of the price increase cycle. Analysts point out that if DMC prices smoothly rise to the target level of 13500 yuan/ton, the industry's profit margin will jump from 5% to over 15%. Leading companies with high production capacity elasticity and significant cost advantages, as well as "hidden champions" in the extension of photovoltaic and new energy tracks, will benefit first.


Risk Warning: Implementation of Production Reduction and Demand Fluctuations Still Need Attention
Despite the current high market sentiment, we need to be vigilant about potential risks such as lower than expected production cuts and fluctuations in photovoltaic demand. Some companies have stated that production reduction plans need to be dynamically adjusted in conjunction with raw material supply and order conditions, and changes in European market policies may also affect export expectations. However, the industry generally believes that this "anti internalization" action marks the transformation of the silicone industry from "cost internalization" to "value competition", which is beneficial for high-quality development in the long run.