In December 2025, under policy guidance and market coordination, the domestic organic silicon industry will achieve price repair and a virtuous cycle of the industrial chain through the "anti internal competition" action. According to industry monitoring data, as of December 10th, the mainstream quotation for organic silicon intermediate DMC (dimethyl cyclic siloxane mixture) has risen to 13500-14000 yuan/ton, with a cumulative increase of 21% compared to early November. Some leading enterprises such as Hesheng Silicon Industry and Dongyue Silicon Material have exceeded 15000 yuan/ton in raw rubber product prices, and silicone oil prices have risen by 15% -20% simultaneously.


Industry collaboration to reduce production and increase prices, optimizing supply and demand patterns
The current price increase is due to the industry's proactive regulation of supply. On November 12th, Luxi Chemical took the lead in holding the "Market Rescue Conference", and major domestic enterprises achieved the goal of "reducing production by 30%+raising prices to 13500 yuan/ton", with plans to fully implement it in early December; On November 18th, Hesheng Silicon Industry further organized a control level meeting to refine the mechanism for production reduction supervision and price coordination. According to data from Baichuan Yingfu, since late November, the industry average operating rate has dropped from 85% to 60%, factory inventory has been running at a low level, and the order placement cycle has been extended to 15-20 days, indicating a strong willingness to raise prices.


Emerging demand releases, export performance is impressive
The demand side is showing structural growth. Domestically, the demand for new energy, electronic appliances, semiconductors and other fields continues to be released. From January to September 2025, the apparent consumption of organic silicon reached 1.513 million tons, a year-on-year increase of 19.6%. Among them, the proportion of high-end products such as photovoltaic packaging adhesive and new energy vehicle seals has increased to 40%. In terms of the international market, due to the surge in demand for infrastructure upgrades in Southeast Asia, the export volume of Chinese rubber compounds increased by 31% year-on-year, and orders from multiple companies were scheduled until the first quarter of 2026.


The performance of leading enterprises has improved, and valuation reassessment is expected
The recovery of industry prosperity is driving the profit recovery of leading enterprises. Hesheng Silicon Industry achieved a single quarter turnaround from losses to profits in the third quarter, with a net profit attributable to the parent company of 76 million yuan. Its advantages in industrial silicon and organic silicon full industry chain layout are highlighted; The gross profit margin of Xingfa Group's new energy organic silicon products is 15-20 percentage points higher than that of traditional products, and the revenue in the third quarter accounted for over 40%. Institutional analysis suggests that with the acceleration of new energy construction during the 15th Five Year Plan period, the growth rate of demand for organic silicon will continue to be higher than the overall industry level. Leading enterprises are expected to further expand their market share through technological iteration and capacity integration.