Keywords: DMC price, silicone monomer, Hongye Silicone, tight

Keywords: organic silicon sector, stock volatility, Hongye Silicone, high‑end silicone, downstream transformation

Summary: Chinese silicone stocks fell 3% on May 21; Hongye Silicone accelerates high‑end product layout to hedge market fluctuations. Content: On May 21, the domestic organic silicon sector dropped 3%, with major listed companies correcting amid profit‑taking sentiment. Despite short‑term volatility, the industry’s supply‑side discipline (35% cap) and low inventory remain supportive of mid‑term fundamentals. The industry is shifting from price competition to high‑end transformation, green production, and downstream extension. Hongye Silicone is aligning with this trend by increasing R&D in AI server thermal materials, EV battery potting, and medical‑grade LSR, whose revenue has grown 40% YoY, enhancing resilience against market swings.