In January 2026, a new round of price increases will be launched in the global silicone market. International giants represented by Dow Chemical and Sika China have taken the lead in adjusting prices. Dow Chemical has raised the prices of high-performance construction products by 5% -10% since January 26, while Sika China will raise the prices of industrial silicone adhesive products by 10% -20% in December 2025. Domestic enterprises quickly followed suit, and mainstream manufacturers such as Silicon Treasure Technology and Xin'an Shares simultaneously raised the prices of building sealants, electronic packaging silicon materials, and other products, with the increase concentrated at 8% -15%. It is worth noting that the industry leader Hesheng Silicon Industry has "raised prices" by actively reducing supply and lowering production load, and its inventory has dropped to a low level, further supporting market prices.


The direct driving force behind this wave of price increases is the rising cost of raw materials. Data shows that since November 2025, the price of organic silicon intermediate DMC has increased by over 10% in a single month. By early January 2026, the DMC quotes from the three major manufacturers had risen to 13500-14000 yuan/ton, rebounding by over 30% from the historical low in June 2025. Industry analysts point out that this round of price recovery is a microcosm of the industry's transition from "deep downturn" to "cost recovery". In 2025, the organic silicon industry was once caught in a price war due to overcapacity, and DMC prices fell below the cost line, squeezing the profits of the entire industry chain. But since November 2025, when Luxi Chemical took the lead in holding an industry conference and established a self regulatory mechanism to reduce production by 30% across the industry, the supply-demand situation has significantly improved, and mainstream product prices have stabilized and rebounded.


The favorable policies on the demand side inject momentum into the industry's recovery. At the end of 2025, the "15th Five Year Plan" conference will clearly support the development of new energy, photovoltaics, real estate and other fields, and relevant policies will gradually be implemented by 2026. Data shows that by 2025, China's newly installed photovoltaic capacity will reach 252.87GW, and the production of new energy vehicles will increase by 31.2% year-on-year. The demand for organic silicon in these emerging fields continues to rise. For example, the usage of organic silicon in new energy vehicles has surged from 5-7 kilograms in traditional fuel vehicles to 24-25 kilograms, directly driving demand for power battery sealant, cable insulation silicone rubber, and other products.


Industry experts believe that the current organic silicon market has shown a positive adjustment trend of "active destocking, supply contraction, and price repair". With the widening gap between supply and demand, the growth of emerging demand, and the release of policy dividends, the industry is expected to emerge from the trough. But it is necessary to pay attention to key variables such as the trend of raw material prices, industry capacity adjustments, and downstream demand recovery, especially the supply stability of upstream raw materials such as industrial silicon.