In 2025, the global silicone market is undergoing a critical turning point. On the one hand, prices have fallen to a historical low, and on the other hand, emerging demands such as new energy and AI terminals have exploded, and the supply and demand pattern of the industry has gradually improved. This article will comprehensively analyze the latest developments in the current silicone market from five dimensions: price trend, supply and demand pattern, competitive situation, application field and future trends.


Price trend: bottom shock, rebound is imminent
At the beginning of 2025, the silicone market experienced drastic adjustments, and the price of DMC (dimethylsiloxane ring body) in East China fell to 14,000 yuan/ton. Some companies even lowered the transaction price to a historical low of 12,800 yuan/ton to destock. The prices of derivative products such as 107 glue and raw rubber were generally reduced by 500 yuan/ton, and the industry as a whole entered a state of small profits or even losses.


The core factors leading to the price drop include:


Overcapacity: The industry will expand production on a large scale from 2022 to 2024, with an additional capacity of more than 1.5 million tons


Exports are blocked: The United States imposes a 104% tariff on deep-processed silicone, silicone oil and other products, affecting China's export competitiveness of $150 billion in electronic products


High inventory pressure: The industry inventory percentile reached 43%, and companies actively reduced prices to recover funds


But the market has shown signs of recovery:


Price bottoming: DMC prices are at the 0% percentile in the past 10 years, and the price difference percentile is only 3%


Supply contraction: Leading companies plan to jointly reduce production by 20%, and actively control quantity and maintain prices before the peak season


Cost support: The current price is close to the industry's average cost line, and there is limited room for further decline


Supply and demand pattern: China dominates global production capacity, and emerging demand becomes a growth engine
Supply side: China has become a global production center


Global silicone production capacity (discounted DMC) reached 4.518 million tons, of which China accounted for 76% (3.44 million tons)


China's new Increased production capacity by 1.565 million tons, with Xingfa Group planning to produce 100,000 tons in 2025


Industry concentration CR5 reached 60%, with Hesheng Silicon leading the way with 865,000 tons of production capacity (accounting for 25%)


Demand side: New energy and electronics drive growth


Demand in traditional fields (29.9% in construction, 26.6% in electronics and electrical appliances) stabilized


New energy vehicles drive a surge in demand for battery sealing and thermal management materials


The annual growth rate of demand for photovoltaic module encapsulation glue exceeds 20%


AI terminals (flexible wearables, machines The market size of electronic skin for humans will exceed 18 billion yuan in 2025


The third-generation semiconductor silicon carbide (SiC) is accelerating its penetration in the automotive and energy fields


Imports and exports: volume increases and prices decrease, and the structure needs to be optimized


From January to November 2024, China's DMC exports were 496,200 tons, a year-on-year increase of 32.4%


Main exports to South Korea (18.1%), India (12.6%), and the United States (7.4%)


The export unit price is US$2.72/kg, far lower than the import price of US$7.76/kg