SunSirs: China's Polysiloxane Export Situation in August 2025
September 29 2025 11:22:13
China remains a dominant player in the global polysiloxanes market, particularly in the export of polysiloxanes in primary forms, which are essential for industries like electronics, construction, automotive, and healthcare. As the world's largest producer of silicones, China's exports have been influenced by fluctuating global demand, raw material prices, and geopolitical factors.
According to data from SunSirs, a leading Chinese commodity data provider, China's polysiloxane exports in August 2025 reached 48,100 metric tons, marking a month-over-month increase of 3.66% but a year-over-year decline of 1.43%. Cumulatively, from January to August 2025, exports totaled 373,100 metric tons, reflecting a modest year-over-year growth of 1.41%. These figures highlight a resilient yet cautious export trajectory amid volatile market conditions.
The August uptick in monthly exports can be attributed to seasonal demand surges in downstream sectors, such as sealants and adhesives used in construction projects across Asia and Europe. However, the slight annual drop suggests challenges like rising production costs and supply chain disruptions. SunSirs' analysis points to stabilizing domestic prices for silicone intermediates, such as dimethylcyclosiloxane (DMC), which averaged around competitive levels in 2025, supporting export competitiveness. Despite these hurdles, the cumulative growth indicates a recovery from earlier slowdowns, driven by China's expansive production capacity expansions by major firms like Shin-Etsu and Wacker Chemie, which have invested heavily in facilities in provinces like Zhejiang and Jiangsu.
From a foreign perspective, international reports underscore China's pivotal role in the global silicone supply chain. The Freedonia Group estimates the global silicones market at $27 billion in 2024, with projections for steady growth through 2025, fueled by demand in electronics and automotive sectors. Grand View Research forecasts the market to reach $32.26 billion by 2030, with a CAGR of 6.0% from 2024, noting China's exports as a key driver due to cost advantages and technological advancements. In particular, Asia-Pacific, including markets in India, Japan, and South Korea, absorbs a significant portion of Chinese exports, with silicone used in wearable electronics and 5G infrastructure.
The Business Research Company projects the global silicone market to hit $48.71 billion by 2029 at a 14.5% CAGR, emphasizing automotive applications where Chinese polysiloxanes provide heat-resistant coatings and seals.
Foreign investments further illustrate confidence in China's export potential. For instance, Wacker Chemie AG announced a $160 million expansion in Zhangjiagang in 2023, set to boost silicone fluid and emulsion production by 2025, enhancing export volumes to Europe and North America. Similarly, Shin-Etsu Chemical plans a new plant in Pinghu, Zhejiang, with operations starting in 2026, aiming to increase output for global markets amid rising raw material costs. Allied Market Research highlights that Asia-Pacific held over two-fifths of the global silicone market in 2022, with China leading due to its manufacturing prowess. However, challenges persist, including trade tensions and environmental regulations in importing countries like the US and EU, which could impose tariffs on Chinese silicones to promote domestic production.
Looking ahead, Mordor Intelligence predicts the silicone market volume to reach 3.17 million tons in 2025, with China exporting a substantial share amid a 5.19% CAGR through 2030. Factors such as urbanization in emerging economies and the push for sustainable materials will likely sustain growth. BCC Research anticipates the market to grow to $23.3 billion by 2029 at 6.0% CAGR, with construction and electronics as primary drivers. For China, maintaining export momentum will require innovation in eco-friendly silicones and diversification of markets beyond traditional partners.
In summary, while SunSirs data reveals moderate growth in 2025 polysiloxane exports, foreign analyses portray a dynamic landscape where China's dominance supports global supply but faces evolving pressures. Strategic expansions and adaptability will be crucial for sustained export success.
As an integrated internet platform providing benchmark prices, on September 29, the benchmark price of silicone DMC on SunSirs was 11,050.00 RMB/ton, down 0.45% from the beginning of this month (11,100.00 yuan RMB/ton).
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