Industry Background and Current Situation

In recent years, China's silicone industry has rapidly expanded, becoming the world's largest producer and consumer of silicones. According to the latest data, the production capacity of China's silicone industry continues to grow, with expectations to reach 3.276 million tons by 2025, with an operating rate recovering to 84% and production volume reaching 2.75 million tons. This rapid development is not only attributed to the increasing demand for silicone products in domestic and international markets but also to the continuous technological innovation and product quality improvement within the industry.

Market Demand and Price Increase

As the supply-demand relationship in the silicone industry gradually improves, market prices are also expected to rise. Historically, each price increase has been accompanied by positive changes in the supply-demand relationship. As of January 26, 2025, the market price of silicone DMC in East China is 12,800 yuan/ton, although it is still fluctuating at the bottom of the cycle. However, with the gradual absorption of new production capacity and the improvement of operating rates in the future, prices are expected to gradually rebound.

Corporate Dynamics and Industry Trends

In the rapid development of the silicone industry, a group of outstanding enterprises have emerged. For example, Hoshine Silicon Industry has slightly increased the prices of some silicone products, reflecting the strong market demand and the improvement of the company's product competitiveness. At the same time, many companies in the industry are actively expanding production capacity and optimizing product structures to adapt to changes in market demand. In addition, with the rapid development of high-tech industries such as new energy, electronics, and aerospace, the demand for high-performance silicone materials will continue to increase, bringing new development opportunities to the silicone industry.

Future Outlook

Looking ahead, the silicone industry will continue to maintain its rapid development momentum. Driven by the continuous growth of market demand, technological progress, and industrial upgrading, the industry will embrace more development opportunities and challenges. At the same time, companies in the industry also need to strengthen technological innovation and product quality management, enhance their core competitiveness, and cope with the increasingly fierce market competition.

In summary, China's silicone industry is embracing a new round of development opportunities. Driven by market demand, price increases, corporate dynamics, and industry trends, the industry has broad prospects for future development.

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