In April 2025, the silicone market still faces many challenges, and the market performance is difficult to be optimistic. From the supply side, although the northern factory production reduction plan landed, but some new production capacity, the overall reduction is less than the increase, the supply pressure still exists. On the demand side, the on-load of the organic silicon monomer plant continues to decline, the output decreases, and the demand for industrial silicon decreases. Polysilicon plant starts stable but demand is stable, aluminum alloy plant purchases on demand, and the overall demand is expected to decrease slightly.
In terms of inventory, the industrial silicon social inventory is at a high level, the storage speed is slow, and the high inventory has a greater suppression effect on the price. In terms of price, some monomer factories have greater inventory pressure, strong willingness to go to the warehouse, the transaction center of gravity is loosened downward, and prices are falling.
However, we should not be overly pessimistic. After experiencing a rapid production expansion cycle, the silicone industry is gradually moving towards a new stage of supply and demand balance. With the end of the production expansion cycle and the rise of demand in emerging areas, the supply and demand pattern of the silicone industry is expected to gradually improve. From the perspective of downstream demand structure, silicone has a wide range of applications in automotive, construction, electronics, medical and other fields. The demand for silicone materials in the automotive industry continues to grow, especially in the field of electric vehicles; The demand for durable, environmentally friendly and high-performance materials in the construction industry has increased, and silicone materials have become the ideal choice due to their excellent properties. With the development of technology in the electronics industry, the demand for silicone is also rising.
Although the current market is not optimistic, as long as enterprises adhere to technological innovation, optimize product structure, improve product quality and service level, and actively expand emerging markets, it is expected to occupy an advantage in market competition. At the same time, pay close attention to market dynamics and policy changes, and flexibly adjust business strategies to cope with possible risks and challenges. I believe that in the persistence, the silicone industry will usher in the final victory and achieve sustainable development.
