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Home> Company News> LSR Manufacturers Face Raw Material Cost Volatility, Partial Factories Suspend New Orders Temporarily

LSR Manufacturers Face Raw Material Cost Volatility, Partial Factories Suspend New Orders Temporarily

2026,07,24
Keywords: Liquid silicone rubber raw material cost, DMC price fluctuation, LSR production cost pressure, silicone order suspension, mid-year raw material adjustment
Addition curing silicone
 
Key Sentence: Sharp swings of DMC monomer prices push liquid silicone producers to halt new order acceptance to avoid losses amid unstable upstream procurement costs.
 
On July 24, 2026, mainstream liquid silicone rubber manufacturers in South China issued temporary order suspension notices. Recent DMC spot prices fluctuated drastically, hitting an annual low in mid-July before rebounding rapidly, creating uncontrollable cost risks for LSR makers signing long-term fixed-price export orders.
 
Medical-grade, automotive and electronic low-ion LSR consume large amounts of high-purity DMC as core raw material. Small and medium-sized LSR factories with weak raw material stockpiling capacity bear the biggest profit squeeze, while large manufacturers adjust pricing terms to adopt floating price linked to DMC daily quotations.
 
Industry insiders stated the suspension will mainly target general-purpose mold liquid silicone, and customized high-value certified LSR orders will remain normally accepted. Market participants expect raw material prices to stabilize in early August after sustained coordinated production cuts, and full order resumption will be carried out once cost fluctuations narrow.
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