Silicone oil market price volatility has intensified, reflecting profound changes in market supply and demand dynamics. Factors such as raw material price fluctuations, capacity changes, and downstream demand adjustments collectively contribute to new characteristics in market price movements.

Raw material price volatility is one of the main factors affecting silicone oil prices. As a petroleum derivative, silicone oil prices are closely related to international oil price trends. Additionally, changes in the supply and demand of organic silicon monomers directly impact silicone oil production costs. In recent years, factors such as geopolitics and the pandemic have exacerbated raw material price volatility, increasing uncertainty in silicone oil market prices.

Capacity changes are another important influencing factor. With the release of new capacities, market supply capabilities have strengthened, putting downward pressure on prices. However, the exit of outdated capacities due to environmental policies has somewhat alleviated supply pressures. This dynamic adjustment in supply and demand relationships makes market price fluctuations more complex.

Changes in downstream demand structures also affect price trends. Demand in traditional application areas is relatively stable, while rapid growth in emerging application areas brings new demand increments. Different application areas have varying quality requirements for silicone oils, leading to increased price differentiation. High-end specialty silicone oil prices remain relatively stable, while ordinary silicone oil prices experience greater volatility.