Recently, under the dual influence of policy calls and market rules, the silicone industry has sparked a wave of "anti involution" and achieved significant results. Since November, the domestic silicone industry has held frequent meetings to discuss the industry's development path, and has reached important consensus on the silicone price mechanism and industry linkage production reduction mechanism.


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", and plan to fully implement it in early December. Subsequently, on November 18th, Hesheng Silicon Industry took the lead in holding a meeting of actual controllers of organic silicon monomer factories, further refining the mechanism for production reduction supervision and price coordination, and strengthening the consensus and determination of the industry to cooperate against internal competition.


After the industry conference released clear signals of rising prices and expectations of reduced production, the market price of organic silicon quickly responded. According to data from Baichuan Yingfu, as of November 21st, the price of domestic organic silicon intermediates has risen to 13000 yuan/ton, an increase of 18.2% compared to early November; The average gross profit of the organic silicon intermediate industry has increased to 1209 yuan/ton, an increase of 2650 yuan/ton compared to early November. Entering December, the organic silicon market continues to maintain a strong momentum, DMC、 The prices of mainstream products such as silicone oil continue to rise, with some products experiencing a price increase of over 3000 yuan/ton, and the market showing a good trend of both quantity and price rising.


The effectiveness of the "anti internal competition" in the organic silicon industry is not only reflected in the price rebound, but also in the gradual improvement of market supply and demand relationship. With the gradual implementation of the production reduction plan, the supply of organic silicon market has been effectively controlled, and the demand in downstream fields such as new energy, electronic appliances, and semiconductors continues to rise, providing strong demand support for the organic silicon market. Multiple institutions believe that the supply and demand of organic silicon will continue to improve in the long term, and the industry's prosperity is expected to continue to improve.


In this context, several leading companies have expressed confidence in their future business operations. Hesheng Silicon Industry stated that the volume and price of its industrial silicon and organic silicon products have both increased month on month, especially with sales and prices of industrial silicon products achieving month on month growth. Sanyou Chemical also stated that the pattern of the organic silicon industry is gradually optimizing, and the market has the core conditions to recover from the bottom. The subsequent prosperity is expected to continue to improve.