Organic Silicon High-Quality Development Conference & Market Analysis

                     Organic Silicon High-Quality Development Conference & Market Analysis

 

 From February 28 to March 1, 2026, against the backdrop of budding spring in Zhejiang, major domestic organic silicon monomer enterprises gathered for the grand Organic Silicon High-Quality Development Conference. The meeting built consensus and sent a positive signal that the industry is stabilizing and recovering. Participating companies unanimously agreed to continue their emission reduction strategy with a moderate price increase and steady progress:

From March to May, the emission reduction ratio will be raised to 35%.

Each enterprise’s monthly emission reduction ratio shall not be lower than 30%.

All products will be increased by 300 RMB/ton, effective March 2:

DMC raised to 14,300 RMB/ton

107 silicone rubber quoted at 14,800 RMB/ton

Raw silicone rubber quoted at 15,100 RMB/ton

This round of price increases has laid a solid foundation for the 2026 market opening and built momentum for the upcoming traditional peak season of the Golden March.

Although the industry still faces pressure from overcapacity, coordinated production restrictions have pushed prices back to a reasonable range that downstream enterprises can afford. Participating enterprises agreed that moderate price increases will remain the main tone, with DMC prices to be stabilized above 14,000 RMB/ton. This level ensures reasonable industry profits while avoiding monopoly concerns or attracting new entrants.

 

Despite the positive start in Q1, companies are also keenly aware that overseas exports will face significant pressure in Q2, and the sustained support for price stabilization still needs market validation. In particular, after the removal of export tax rebates in April, export volumes may decline, which could prompt the industry to further coordinate and strengthen production restrictions to stabilize the domestic market.

In response, monomer producers will strengthen price risk control mechanisms and industry self-discipline to avoid disorderly competition at the source. Profit margins will remain cautious to ensure prices stay above the cost line, safeguarding basic corporate profitability and sustainable industry development.

Notably, market competition will remain intense in 2026, with international geopolitical tensions adding further uncertainty. The sudden escalation of military conflicts between the US, Israel, and Iran may trigger a sharp jump in international oil prices when markets open on Monday. Iran is also the world’s second-largest methanol producer and controls the Strait of Hormuz, through which about 20% of global seaborne crude oil passes.

 

As a result, rising oil prices, shipping costs, and methanol prices will be the first to impact the industry. Organic silicon monomer production is highly dependent on methanol: approximately 1.13 tons of methanol are consumed to produce 1 ton of organic silicon monomer (mainly dimethyldichlorosilane). Therefore, uncontrollable costs have become a key variable for future price trends. If methanol prices surge, monomer producers may raise prices again to pass on costs.Surging precious metals, driven by safe-haven demand, are also expected to continue rising, keeping costs high for platinum additives and silicone rubber producers.

 

Overall, the Organic Silicon High-Quality Development Conference in Zhejiang, known as the "First Meeting of the Year of the Horse", coincided with direct military conflicts between the US, Israel, and Iran. This geopolitical black swan event has added new uncertainty to organic silicon price trends.

At present, the industry’s anti-involution efforts are steadily advancing, with the second phase of emission reduction to be implemented and supervision further strengthened. With both positive and negative factors in the volatile international situation, midstream and downstream buyers remain cautious about chasing higher prices, and consensus has been reached to make rational decisions based on actual order volumes.

From a macro-policy perspective, with structural adjustments to export tax rebates and strategic guidance under China’s 15th Five-Year Plan, the organic silicon industry is accelerating its transition from scale expansion to value competition centered on technological innovation and industrial chain collaboration.

Meanwhile, sustained demand growth for high-performance organic silicon materials in emerging sectors such as new energy, electronics, and healthcare is injecting strong momentum into the industry. A more resilient, dynamic, and green industrial chain ecosystem for organic silicon is quietly taking shape amid rapid development.