On January 13, 2026, the domestic silicone market reached a critical turning point. According to Longzhong Information Monitoring, the mainstream quotation for organic silicon intermediate DMC has risen to 13500-14000 yuan/ton on January 6th, with a cumulative increase of more than 10% compared to November 2025. The prices of derivatives such as raw rubber and methyl silicone oil have also risen synchronously, and the industry's profit recovery trend is obvious. Behind this wave of price increases is the dual driving force of the "anti internal competition" actions of top enterprises and the outbreak of emerging demand.


Supply side reform: reduce production by 30% and reshape the supply-demand pattern
In November 2025, Luxi Chemical led an industry conference to establish a self regulatory mechanism for reducing production by 30% across the industry. Domestic and foreign giants such as Dow Chemical, Sika China, and Silicon Treasure Technology followed suit. Hesheng Silicon Industry has chosen the strategy of "production based on sales" to stabilize prices after Dongyue Silicon Materials completed a 300000 ton capacity resumption transformation by shrinking supply and reducing inventory to a low level. Data shows that the supply and demand gap in the domestic organic silicon industry will be about 9000 tons by 2025, and is expected to expand to 112000 tons by 2026. The contraction of the supply side has effectively enhanced the confidence of the industry chain in rising prices.


Demand side explosion: New energy and 5G become growth poles
The high prosperity of the new energy vehicle and photovoltaic industries injects strong power into organic silicon. From January to November 2025, the sales of new energy vehicles in China increased by 31.2% year-on-year, and the amount of organic silicon used per vehicle surged from 5-7 kilograms to 24-25 kilograms, directly driving the demand for power battery sealant and cable insulation silicone rubber; In the photovoltaic field, the newly installed capacity from January to October reached 252.87GW, a year-on-year increase of 39.5%, and the demand for module packaging adhesive continued to rise. In addition, the large-scale deployment of 5G base stations and AI computing hardware has opened up the application space of electronic grade silicone materials, becoming a new engine for industry recovery.


Policy dividend: Foreign investment directory releases positive signal
In December 2025, the National Development and Reform Commission released the "Catalogue of Industries Encouraging Foreign Investment (2025 Edition)", which clearly supports the high-quality development of the organic silicon industry. This policy will not only attract more international capital to layout high-end silicon-based materials, but also promote the industry to obtain resource tilt in technological innovation, industrial chain upgrading, and other aspects. Industry insiders point out that with the gradual implementation of policy support for new energy, real estate and other fields in the 15th Five Year Plan, the organic silicon industry is expected to move from "cost repair" to a new stage of "value creation".


Enterprise Dynamics: Parallel Digital Transformation and Green Upgrading
In Yongxiu, Jiangxi, the "industrial brain" of organosilicon uses intelligent computing and decision-making to help enterprises such as Maihao organosilicon achieve equipment failure prediction, precise matching of market demand, and increase production efficiency by more than 20%; Inner Mongolia Hengye Cheng was awarded the title of "Single Champion Enterprise" with 30 patents and 72% market share in the autonomous region. Its methyl vinyl silicone rubber products have entered high-end fields such as medical and food. Industry experts say that the silicone industry is shifting from "scale expansion" to "quality priority", and technological innovation and green transformation will become the key to competition in the next stage.