On February 17, 2025, China's organic silicon market ushered in a wave of comprehensive price increases. The quotations of mainstream products represented by DMC (dimethylsiloxane), silicone oil and raw rubber continued to rise, and the market situation has undergone fundamental changes. This price increase phenomenon has not only attracted widespread attention from industry insiders, but also brought considerable market pressure to downstream companies.
Background and reasons for price increases
This price increase is not a sudden situation, but a rebound in the organic silicon industry after a long-term price war. In recent years, affected by the global economic situation and the competitive landscape of the industry, the price of the organic silicon market has fluctuated frequently. Many monomer manufacturers have high production costs in the ongoing price war, and the situation of continuous losses has made it difficult for enterprises to continue. Therefore, joint price increases have become a self-help behavior for major companies.
From the perspective of the supply chain, this price increase is closely related to the adjustment of the supply chain. In response to market challenges, industry leaders have actively taken cooperative measures and reached a strategic consensus on joint production cuts. Such measures not only help reshape the market structure, but also provide the possibility for prices to return to a healthy range. In addition, the implementation of the staggered maintenance plan and the necessary adjustment of the operating rate have greatly enhanced the market's confidence in long-term recovery.
Analysis of price increases
Specifically, the increase in DMC is particularly significant in this wave of price increases. According to the latest market data, on February 17, the quotation of DMC has reached the 13,400 yuan/ton mark, an increase of 800 yuan/ton. The market sentiment is high, and the number of inquiries from traders has also surged. At the same time, the prices of products such as silicone oil and raw rubber have also risen to varying degrees. The quotation of silicone oil is generally between 15.5-15.9 yuan/KG, while the quotation of raw rubber has been raised to the range of 14.5-14.7 yuan/KG.
This price increase trend is not limited to the Chinese market, but the result of the joint action of the global silicone market. In the international market, the prices of upstream raw materials such as raw metal silicon are also continuing to rise, further pushing up the production cost of silicone products. In addition, as the global economy gradually recovers, downstream demand gradually picks up, which has also had a positive driving effect on the price of silicone products.