On December 29, 2025, the domestic organic silicon DMC market continued to maintain a stable trend, with mainstream quotations stabilizing in the range of 13500-14000 yuan/ton. According to Longzhong Information Monitoring, the price of raw material silicon metal has remained weak and volatile in recent times, with limited support on the cost side. However, mainstream individual factories have actively adjusted their supply through production reduction plans, gradually improving the market supply and demand relationship.


Supply and demand dynamics: coexistence of production reduction and demand differentiation
On the supply side, since December 25th, some individual factories have gradually implemented production reduction measures, resulting in a decrease in industry operating rates. Taking leading enterprises such as Jiangxi Xinghuo Organic Silicon and Zhejiang Xin'an Chemical as examples, their capacity utilization rate has decreased by about 5% -8% compared to last month, effectively alleviating market inventory pressure. On the demand side, there is a structural differentiation: the demand for traditional building sealants, silicone oils, and other fields continues to be weak, but the demand for high-temperature adhesives and liquid silicone rubber in emerging fields such as new energy and 5G communication continues to grow rapidly. According to Luo Liguo, Chairman of Hesheng Silicon Industry, the demand growth rate of the organic silicon industry is expected to remain at 8% -10% in 2025, with significant incremental contributions from segmented markets such as photovoltaic module packaging adhesives and new energy vehicle electronic seals.


Cost and profit: The advantages of industrial chain integration are highlighted
Currently, the average gross profit margin of the organic silicon DMC industry remains in the range of 12% -15%, an increase of about 3 percentage points compared to the same period in 2024. Top enterprises further reduce costs by integrating their industrial chains, such as Hesheng Silicon Industry, which controls unit production costs below 80% of the industry average through its own power plants, silica mines, and chlor alkali facilities. In contrast, small and medium-sized individual factories have seen their profit margins continue to narrow and industry concentration accelerate due to factors such as high raw material procurement costs and increased investment in environmental protection.


Market outlook: Short term game intensifies, long-term positive trend is clear
Analysts point out that although the current market is still in the traditional off-season, downstream companies' willingness to stock up is gradually increasing, coupled with the release of demand for replenishment before the Spring Festival. It is expected that DMC prices will moderately rise to 14500-15000 yuan/ton in the first quarter of 2026. In the long run, with the conclusion of the 14th Five Year Plan and the launch of the 15th Five Year Plan, the organic silicon industry will accelerate its transformation towards high-end and green products. The proportion of high value-added products such as special silicone resins and silicon-based new materials is expected to increase from the current 15% to over 30%.