In January 2026, the Chinese organic silicon market will usher in a new round of price upward cycle under the improvement of supply and demand pattern and cost support. DMC、 The prices of core products such as silicone oil have steadily increased, while downstream industries such as construction, new energy, and electronics are affected by cost transmission, resulting in structural differentiation in demand.


Short term tight supply and demand drive up prices
According to monitoring, the domestic price of organic silicon DMC will rise to 13700-14000 yuan/ton in mid January 2026, an increase of about 300 yuan/ton from the beginning of the month. On the supply side, after the New Year holiday, some companies reduced their market investment due to maintenance plans, coupled with tight logistics and transportation, resulting in a slight contraction in short-term supply; On the demand side, downstream silicone and oil companies have increased their purchasing enthusiasm to prepare for orders before the Spring Festival, especially with significant increases in high-end orders in the fields of new energy and electronics.


A certain analysis institution pointed out that the average operating rate of the silicone industry in October 2025 was as low as 50% or below, leading to rapid inventory digestion. Although there will be no new production capacity released throughout 2025, the industry will gradually repair its profit margins through self-discipline, production reduction, and price coordination. It is expected that in the first quarter of 2026, with the support of pre holiday stocking and export orders, prices are expected to maintain a stable to strong trend.


Downstream application field demand differentiation


Construction field: transmission of cost pressure, increasing proportion of high-performance products
A certain international enterprise recently announced a price increase of 5% -10% for high-performance building silicone sealants, adhesives, and other products starting from January 26th. This type of product has extremely high requirements for weather resistance and durability, and the technical barrier is much higher than that of general products. Analysis suggests that price increases will accelerate the "good money drives out bad money" in the construction industry, and drive downstream enterprises to shift their focus from simply focusing on procurement costs to comprehensively considering material performance and long-term reliability.
New energy and electronics sector: High demand supports high-end market
Emerging industries such as photovoltaics and new energy vehicles have become the core engines driving the growth of demand for organic silicon. By 2025, China's newly installed photovoltaic capacity will reach 212.2 GW, a year-on-year increase of 107%; The production of new energy vehicles increased by 36.9% year-on-year. The demand for special materials such as conductive silicone and thermal grease in these fields has surged, driving up the prices and gross profit margins of high-end silicone products.
Consumer goods field: led by on-demand procurement strategy
The demand for daily necessities in winter has increased, coupled with the fluctuation of platinum prices affecting additives. Silicon product companies generally adopt the strategy of "production on demand, active shipment". Although the cost of organosilicon has increased, the transmission of end consumer goods prices lags behind, and companies are more likely to digest cost pressures through optimizing processes and supply chain management.
Industry outlook: Long term supply-demand gap may widen
A securities institution predicts that the organic silicon industry will experience a supply-demand gap of -294000 tons and -184000 tons respectively from 2026 to 2027, and the supply-demand mismatch caused by the expansion cycle is expected to be reversed. With the sustained strong demand from overseas, developed countries such as Europe, America, and South Korea have increased their dependence on imported upstream organic silicon raw materials, which will further enhance the competitiveness of Chinese enterprises in the global market.


Industry experts say that the silicone industry has entered the era of "technological competition" from "cost competition". In the future, enterprises with research and development capabilities and industrial chain integration capabilities will dominate the market, while the dual role of policy guidance and industry self-discipline will promote the upgrading of China's organic silicon industry towards high quality and high efficiency.