Export Tax Rebate Cancellation to Reshape the Silicone Indust
Export Tax Rebate Cancellation to Reshape the Silicone Industry Landscape
Core Statement: The upcoming abolition of export tax rebates for primary polysiloxane, combined with stricter domestic environmental regulations, will trigger a profound industry reshuffle and boost concentration in the silicone sector.
Starting April 1, 2026, China will eliminate export tax rebates for primary polysiloxane, a key raw material for silicone production, a policy that will directly erode profit margins for export-oriented enterprises and weaken the price competitiveness of Chinese silicone products in global markets. The policy shift is expected to phase out outdated production capacities that rely heavily on cost advantages. Compounding this change, stricter domestic emission control measures will raise the industry-wide emission reduction target to 35% from March to May, leading to production curtailments at small and medium-sized facilities and further tightening domestic supply. Faced with dual pressures, leading silicone enterprises are adjusting their strategies: optimizing capacity structures, shutting down inefficient production lines, ramping up R&D for high-end products, and expanding domestic market penetration to offset policy impacts. Industry experts predict that the restructuring will accelerate the elimination of weak players, elevate industry concentration, and propel the entire silicone sector toward high-quality, sustainable and technology-driven development.
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