As of December 2025, the domestic silicone market has shown a comprehensive upward trend. The price of the core raw material DMC (a mixture of dimethylcyclosiloxane) has continued to rise, becoming the focus of the industry. In early December, the mainstream quotation range of DMC had broken through 13,400-14,000 yuan per ton, with some enterprises' quotations reaching a high of 14,000 yuan per ton. Compared with early November, the cumulative increase exceeded 1,000 yuan per ton, with a growth rate of 8%-10%. This trend was further strengthened on December 5th. The quotations of major factories in Shandong were raised to 13,500 yuan per ton, and leading enterprises in East China even quoted 14,000 yuan per ton. The market's bullish sentiment was high.
The contraction on the supply side is the core driving force behind this round of price hikes. The industry has reached a consensus through three "anti-internal competition" meetings that starting from December, production will be uniformly reduced by 30%. Coupled with the shutdown during the dry season in the southwest region and the reduced operation of facilities in the north, the overall operating rate has dropped below 70%. The reduction in supply directly leads to low inventory levels. Some enterprises are facing tight spot conditions, and even the phenomenon of "suspending trading and reporting" has occurred. Meanwhile, overseas giant Dow Chemical announced a price increase of 10% to 20% starting from December 10th, further consolidating the cost transmission logic.
The recovery of the demand side provides support for prices. The demand in emerging fields such as new energy vehicles, photovoltaic (with an overseas demand growth rate of 20%), and electronic appliances has continued to grow, offsetting the decline in demand in the traditional construction sector. To avoid high-priced raw materials, downstream enterprises have been stocking up in advance. After the silicone sealant enterprises raised prices in a concentrated manner in November, the terminal purchasers gradually accepted the high prices, and the release of stocking demand further pushed up the market.
Cost-side pressure has strengthened the willingness to hold prices. The price of industrial silicon has risen to 9,800-10,200 yuan per ton. Coupled with the increase in methanol and electricity prices, the production cost of DMC has exceeded 11,500 yuan per ton, and the theoretical profit of enterprises has turned from negative to positive. Cost support and supply contraction resonate, pushing prices into an upward channel.
The current market is in a multiple favorable stage of "cost-driven + supply contraction + demand recovery", and prices are likely to remain at a high level in the short term. However, it is necessary to be vigilant against the risk of the implementation of production cuts falling short of expectations and the divergence in terminal demand, especially as weak demand in the construction sector may limit the increase.
