In November 2025, the silicone industry is at a critical turning point, and the market development prospects are showing positive signals. Although the industry has previously experienced price fluctuations caused by the concentrated release of production capacity, the current supply and demand pattern is gradually optimizing, laying a solid foundation for development in November and beyond.
From the supply side, the industry's capacity expansion cycle has come to an end. The pace of new capacity addition will significantly slow down after 2024, and there will be no large-scale release of new capacity in 2025. Leading enterprises, relying on coal-electricity-silicon integrated bases in Xinjiang, Inner Mongolia and other places, continuously consolidate their dominant market position through energy cost advantages and large-scale production. This optimization of the production capacity structure helps alleviate the supply pressure previously caused by excessive expansion and provides support for stabilizing prices.
The demand side has demonstrated strong resilience. The new energy sector has become a core growth pole, with the demand for photovoltaic module encapsulation adhesives and thermal management materials for new energy vehicle batteries continuously rising. The electronics industry has benefited from technological iterations such as 5G and semiconductor packaging, leading to a sharp increase in the demand for high-performance silicone materials. Due to the trend of population aging, the application of biocompatible silicone rubber in surgical instruments, artificial organs and other fields in the medical field is constantly expanding. The rapid development of these emerging fields has opened up new growth space for the silicone market.
There are also benefits at the policy level. The national "dual carbon" goals drive industries towards green and low-carbon transformation. Enterprises reduce carbon emissions in the production process by developing environmentally friendly catalysts, low-VOC materials and circular economy models. Meanwhile, the policy of vertical integration of the industrial chain guides the eastern coastal areas to focus on the innovation of high-end application scenarios, while the central and western regions take over the transfer of production capacity, thus forming a differentiated industrial ecosystem.
Looking ahead to November, as downstream industries enter the traditional peak demand season and demand from emerging fields continues to be released, the silicone market is expected to witness a favorable situation of both volume and price growth. Through technological innovation and product structure optimization, enterprises are gradually shifting from general-purpose products to differentiated competition, injecting new impetus into the high-quality development of the industry.
