In January 2026, the domestic organic silicon market continued its pre holiday upward trend, and the price of core product DMC (dimethyl cyclic siloxane mixture) steadily rose. According to data monitoring by Business Society, as of January 15th, the mainstream quotation in the DMC market has reached 13700-14000 yuan/ton, an increase of 1.1% from the beginning of the month, with some companies experiencing a daily increase of over 300 yuan/ton. This round of price increase is mainly driven by the improvement of the supply and demand pattern: on the supply side, mainstream manufacturers have self disciplined and reduced emissions through "anti internal competition", and the overall industry operating rate in January remained at around 65%. Coupled with tight logistics and transportation, the short-term market supply has contracted; On the demand side, downstream silicone and oil companies have significantly increased their purchasing enthusiasm to prepare for orders before the Spring Festival, especially in high-end fields such as new energy and electronics, which has driven the actual demand growth of DMC.


The cost side also provides support. The stable market situation of silicon metal provides bottom support for DMC prices. In addition, the price adjustment actions of international giant Dow Chemical have further intensified market confidence in maintaining prices. In early January, Dow Chemical announced a price increase of 5-10% for high-performance building products starting from January 26th. Subsequently, domestic and foreign companies such as Sika and Silicon Treasure Technology followed suit, with price adjustments concentrated at 8% -15%, covering core categories such as building sealants and electronic packaging silicon materials. Domestic production capacity leader Hesheng Silicon Industry has actively reduced supply and lowered production load to regulate the market. By the end of 2025, inventory has dropped to a low level, further reducing market supply to support prices.


Industry analysts point out that the current silicone market has shifted from a "supply-demand imbalance" to a "profit recovery" stage. The favorable policies introduced at the "15th Five Year Plan" conference at the end of 2025 for terminal application fields such as new energy, photovoltaics, and real estate are expected to gradually be implemented in 2026, injecting long-term momentum into the demand side. Data shows that in the first half of 2025, China's newly installed photovoltaic capacity reached 212.2 GW, a year-on-year increase of 107%; From January to July, the production of new energy vehicles increased by 36.9% year-on-year, and these emerging fields are becoming the core engines of demand growth for organic silicon.