Supplier and Demand Working Together, Industry Prices Recover
Since 2026, the domestic organosilicon market has shown an overall rebound. Since the industry bottomed out in 2025, the price of the core product, DMC, has rebounded by over 30%. In April, the market price surged to 15,600 yuan/ton. In June, influenced by the off-season for end-user consumption, it experienced short-term narrow fluctuations. In the latter half of the month, the mainstream transaction price remained in the range of 14,500-15,200 yuan/ton. Although market quotations remained stable, there were still instances of slight price concessions in actual transactions.
The coordinated contraction on the supply side is the core support for this round of price increases. The industry has reached a consensus on production cuts multiple times. The latest industry meeting in July further increased the implementation ratio of production cuts from 40% to 60%, and the overall industry operating rate has dropped to 60%-65%, effectively alleviating the long-standing pressure of overcapacity.

Leading companies' performance surges, with a positive outlook for the second half of the year.
The rapid recovery in industry prosperity has directly translated into improved corporate profitability. Leading listed companies saw a significant recovery in their Q1 2026 performance. Dongyue Silicon's semi-annual earnings forecast shows that its net profit attributable to shareholders increased by 905%-952% year-on-year, far exceeding market expectations.
The industry is currently at a critical juncture of transitioning between old and new demands. Demand in the traditional construction sector remains stable, while demand from emerging sectors such as new energy vehicles, photovoltaics, and electronic information continues to expand, gradually becoming the core driving force for industry growth. Coupled with the accelerated clearing of overseas capacity, the export substitution space for leading domestic companies has further opened up. Institutions generally predict that organosilicon prices will stabilize and rebound in the second half of 2026, with the average annual price expected to reach 16,000-17,500 yuan/ton. The industry as a whole is gradually moving away from the past loss-making cycle and entering a new stage of healthy development.