On December 4, 2025, Shanghai - Since November, the domestic silicone industry has achieved significant results through the "anti involution" action to promote the strategy of reducing production and raising prices. Market prices continue to rise, and the industry's prosperity has entered an upward channel. According to data from Shengyi Society on December 1st, the benchmark price of organic silicon DMC (dimethyl cyclic siloxane mixture) has risen to 13150 yuan/ton, an increase of 11.44% from early November. Some companies have even quoted prices exceeding 13500 yuan/ton, setting a new high for the year.


Industry collaboration to reduce production, supply side contraction supports prices
On November 12th, Luxi Chemical took the lead in holding an industry "market rescue conference", and major domestic organic silicon enterprises achieved the key goal of "reducing production by 30%+raising prices to 13500 yuan/ton", with plans to fully implement it in early December. Subsequently, on November 18th, Hesheng Silicon Industry chaired a meeting at the level of actual controllers to refine the mechanism for production reduction supervision and price coordination, and strengthen industry consensus. According to statistics from Baichuan Yingfu, as of November 21st, the price of domestic organic silicon intermediates has increased by 18.2% compared to the beginning of the month, and the industry's average gross profit has risen to 1209 yuan/ton, an increase of 2650 yuan/ton from the beginning of the month.


Behind the contraction of the supply side is the rational adjustment of the industry after a long-term downturn. From 2019 to 2024, the production capacity of organic silicon intermediates in China will expand from 1.52 million tons to 3.44 million tons, but there is no new capacity plan for 2025, and the expansion cycle is coming to an end. At the same time, the "Organic Silicon Industry Standard Conditions (2025 Edition)" will raise the entry threshold for individual projects from 200000 tons to 300000 tons per year, accelerating the clearance of small production capacity. Overseas, Dow Chemical plans to shut down 145000 tons of production capacity in the UK by 2027, while the EU carbon tariffs are forcing 330000 tons of production capacity in Europe to face the risk of shutdown, and the global supply pattern continues to optimize.


Multiple demand points erupt, emerging fields become growth engines
On the demand side, the application of organic silicon is accelerating towards high value-added directions such as new energy, electronic appliances, and semiconductors. In the first three quarters of 2025, the apparent consumption of organic silicon in China reached 1.62 million tons, a year-on-year increase of 5.5%, and it is expected that the annual consumption will exceed 2.1 million tons. among which


New energy vehicles: The usage per vehicle is more than three times that of traditional fuel vehicles. By 2025, the domestic demand for new energy vehicles is expected to reach 15 million units, with a penetration rate of over 55%, driving a surge in demand for battery pack sealing, waterproof charging piles, and other services;
Photovoltaic industry: The global installed capacity is expected to reach 600GW, with a year-on-year growth of over 30%. The demand for photovoltaic module sealant is highly certain;
Electronic appliances: The trend of 5G replacement and the popularity of AIoT devices are driving steady growth in demand for high-end cooling and shock absorbing materials;
Construction and Infrastructure: With the promotion of domestic infrastructure, the stabilization and recovery of real estate, and the renovation of old residential areas, the demand for building sealants and waterproof coatings has remained stable.
Leading enterprises lead the way, and the industry landscape continues to optimize
At present, there is a clear trend of concentration of domestic organic silicon production capacity towards top enterprises. As of the end of June 2025, six listed companies including Hesheng Silicon Industry, Xingfa Group, and Dongyue Silicon Materials have a total production capacity of 4.28 million tons/year of organic silicon monomers, accounting for 62%. Hesheng Silicon Industry has formed a cost advantage in the entire industry chain with a production capacity of 1.73 million tons/year of organic silicon monomers and 1.22 million tons/year of industrial silicon; Dongyue Silicon Materials has mastered the design technology of a single set of 150000 tons/year domestic equipment, with products covering more than 520 grades; As a leading enterprise in the photovoltaic sealant market with a market share of over 45%, Silicon Treasure Technology is deeply bound to top customers such as LONGi and JinkoSolar, and the proportion of high value-added businesses continues to increase.


Industry insiders pointed out that with the implementation of the production reduction plan and the arrival of the peak demand season at the end of the year, there is still room for the price of organic silicon to rise. In the medium to long term, the improvement of the supply and demand pattern, the expansion of demand in emerging fields, and the deepening of industry self-discipline will drive the organic silicon industry into a new cycle of prosperity.