The price stabilization mechanism of ethyl silicone oil market will gradually be implemented in 2026, and upstream and downstream cooperation will be carried out to solve the pain points of high-end applications
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With the continuous promotion of the stable price strategy in the domestic silicone industry, a recent supply-demand docking meeting for ethyl silicone oil was held in Tianmen, Hubei. Nearly 30 production enterprises and downstream application manufacturers from across the country jointly finalized the graded pricing reference system for ethyl silicone oil in the second half of the year, clarifying that the mainstream ex factory price of industrial grade ethyl silicone oil with a purity of 98% -99% will remain within a reasonable range of 20-25 yuan/kg, avoiding the significant price fluctuations of some categories in the past period.
From the information disclosed by the participating companies, it can be seen that the technological upgrading pace of the domestic ethyl silicone oil industry is accelerating. The high viscosity ethyl silicone oil products that relied heavily on imports in the past have now been completely replaced by domestic production. Top production enterprises in Hubei, Shanghai, Shandong and other places are able to supply customized products in batches that meet different scenarios such as scientific research experiments, cosmetics softeners, and high-end electronic insulation. Some high-tech enterprises produce ethyl silicone oil products with viscosity fluctuations controlled within ± 2% between batches, and performance indicators have caught up with similar international products.
It is worth noting that at this supply and demand docking meeting, many downstream enterprises proposed the application needs of ethyl silicone oil in emerging scenarios such as photovoltaic module sealing and IGBT module insulation filling. Production enterprises also announced targeted R&D plans: they will launch electronic grade ethyl silicone oil products before 2027, achieving a technical index of total metal ion content below 0.5ppm, further filling the category gap of high-end special silicone oil in China. Industry analysts say that with the continuous improvement of the quality and diversification of domestic ethyl silicone oil, the procurement cost of downstream high-end scenarios is expected to be reduced by more than 20% compared to imported products in the future, and the overall competitiveness of the domestic silicone oil industry will be further strengthened.