Domestic Silicone Prices Hold Steady, Cumulative Gain Hits 3,
Domestic Silicone Prices Hold Steady, Cumulative Gain Hits 3,000 RMB/Ton Amid Supply-Demand Balance
As of March 24, 2026, mainstream domestic silicone product prices maintain a firm and stable upward trend, marking a sustained recovery from the industry’s prolonged low-margin and loss-making cycle that plagued the market throughout 2025. The benchmark dimethyl cyclosiloxane (DMC), a core intermediate in the silicone production chain, is currently trading at a consolidated mainstream price of 14,300 RMB/ton on a net water basis, while 107 glue, a key raw material for silicone sealants and adhesives, holds steady at 14,800 RMB/ton, and methyl vinyl silicone raw rubber stands at 15,100 RMB/ton. Since hitting a multi-year low of 11,300 RMB/ton in early November 2025, DMC prices have climbed by a cumulative 3,000 RMB/ton in just over four months, a nearly 27% rebound that has pulled most large-scale silicone producers back into profitable territory and eliminated the widespread losses that forced small and medium-sized manufacturers to curb production or halt operations entirely.
Market insiders note that the current price stability is underpinned by a tight supply-demand balance across the entire industrial chain. On the supply side, strict environmental emission controls and industry-wide voluntary production curbs have limited output growth, with no new large-scale capacity coming online in 2026 to disrupt the market. On the demand side, rigid demand from traditional downstream sectors such as construction and home appliances remains resilient, supported by steady infrastructure project launches and stabilized domestic real estate policies. Meanwhile, the booming new energy sector, including electric vehicles (EVs) and photovoltaic (PV) modules, continues to drive incremental demand for high-performance silicone products, creating a dual support system for market prices. Trading volumes in the spot market are moderate, with downstream manufacturers adopting a cautious on-demand procurement strategy to avoid inventory risks, while upstream producers maintain tight inventory control, refusing to cut prices despite occasional slow order flows. Industry analysts predict that prices will remain range-bound in the short term, with limited downside risk and potential for further modest gains if supply tightens further.
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