Supply and demand situation
The supply and demand situation of the silicone industry is currently showing an imbalance between supply and demand. Due to the release of industry capacity and weak downstream demand, resulting in an imbalance between supply and demand, the loss of individual enterprises is particularly prominent. The net profit loss of a single plant in 2023 and the first 11 months of 2024 was 438 million yuan and 230 million yuan respectively
Although the growth rate of silicone monomer production capacity reached 24.05% in 2024, the highest in the past five years, the supply growth gradually exceeded the demand growth, resulting in silicone monomer gradually entering the stage of overcapacity, which affected the product price .
Market trend
Silicone market demand differentiation is obvious, photovoltaic and automotive and other emerging industries for silicone demand is high, better digest the new capacity, the industry operating rate remains at a high level. In 2024, the apparent consumption of domestic silicone intermediates reached 1.816,400 tons, an increase of 20.9% year-on-year . In addition, the export volume of silicone also recovered rapidly to 545,700 tons in 2024, with a year-on-year growth rate of 34.21%
. These figures show that despite some challenges, the silicone market still shows some growth potential.
Policy environment
In terms of policy environment, the policy environment of the silicon material industry in 2025 will continue to be stable, focusing on the main line of energy saving and carbon reduction. The industry supply and demand structure ushered in a deep adjustment, and the market clearance of backward production capacity accelerated. Although industrial silicon production continues to grow, but the social inventory still need to be digested, spot prices to maintain low volatility policy bottom and market clearing under the dual drive, the industry gradually bottom, price repair momentum depends on the speed of inventory removal and photovoltaic demand to fulfill .
