SunSirs: Supported by Multiple Positive Factors, the Price of Silicone DMC Rose by Over 23% in the Fourth Quarter

Price trend:

According to SunSirs' commodity price analysis system, on December 23rd, the reference price for silicone DMC was 13,625 RMB/ton, compared to 11,050 RMB/ton on October 1st. This represents a price increase of 2,575 RMB/ton, or 23.3%.

According to the commodity price analysis system of SunSirs, the price trend of silicone DMC in the fourth quarter of 2025 showed a stepped upward trend of "stable accumulation - rapid increase - steady adjustment". In October, the silicone DMC market was in a period of supply and demand equilibrium, with market conditions still at a low point, and prices hovering around 11,000-11,300 RMB/ton. Subsequently, the market broke away from the previous low-level fluctuations and gradually entered a recovery phase. In November, the consensus on production cuts in the industry became a key turning point in the market, and the price of silicone DMC quickly rebounded, breaking through 13,100 RMB/ton. In December, the upward trend of silicone DMC continued to consolidate, and market prices continued to climb. By the end of the month, the high price of silicone DMC exceeded 14,000 RMB/ton, with the mainstream market price in the range of 13,500-14,000 RMB/ton, and some companies' new material quotations reaching 14,500 RMB/ton, resulting in a cumulative quarterly increase of over 23%. The industry's profitability level gradually recovered from the bottom range to a reasonable level, and the industry gradually reversed its long-term loss situation.

Analysis of factors influencing market trends

Supply side: The consensus on production cuts and the slowdown in capacity expansion provided strong support for silicone DMC

Entering the fourth quarter, the contraction in the supply of silicone materials became the core driving force behind the price increase of silicone DMC. In November 2025, the silicone industry reached a consensus on production cuts to support prices, building upon the production cuts already implemented in April of the same year. This effectively controlled the overall operating rate of the industry, suppressing the release of excess capacity and directly improving the supply-demand imbalance.

Entering the fourth quarter, the contraction in the supply of silicone materials became the core driving force behind the price increase of silicone DMC. In November 2025, the silicone industry reached a consensus on production cuts to support prices, building upon the production cuts already implemented in April of the same year. This effectively controlled the overall operating rate of the industry, suppressing the release of excess capacity and directly improving the supply-demand imbalance.

Demand side: Demand was gradually recovering, and support from essential needs was strengthening

In the fourth quarter, the gradual improvement in downstream demand for silicone DMC provided effective support for price increases. The stable scale of essential downstream demand provided a fundamental basis for market prices. With expectations of rising prices, purchasing strategies shifted from "small, need-based purchases" to "moderate inventory replenishment," further amplifying the supportive effect on demand.

Costs and Inventory: Costs had stabilized at the bottom + optimized inventory structure alleviated pressure 
In terms of costs: In the fourth quarter, the cost of silicone DMC remained relatively stable, providing a solid foundation for the price of silicone DMC. During the fourth quarter, the price of industrial silicon fluctuated within a range, providing stable cost support for silicone DMC.

Regarding inventory: The silicone DMC market, through production cuts and demand absorption, has seen a continuous optimization of its inventory structure. The destocking process has been steady, without significant inventory buildup, thus avoiding the risk of inventory dumping during the price recovery process.

Market Outlook

Overall, in the fourth quarter of 2025, the silicone DMC market finally rebounded from its bottom, achieving a recovery from losses to reasonable profitability, supported by multiple positive factors including supply contraction, steady improvement in demand, and stable cost support. According to SunSirs’ silicone DMC data analyst, the future trend of silicone DMC will still be significantly influenced by supply and demand as well as cost factors. Further attention should be paid to the sustainability of production cuts, changes in costs, and the recovery of end-user demand. It is expected that in the short term, the silicone DMC market price will maintain a stable to slightly upward trend, and the industry is likely to enter a new boom cycle.

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