As 2025 draws to a close, falling temperatures have failed to dampen the silicone market, which continues to maintain momentum driven by multiple factors.
Following the conclusion of the second emission reduction coordination meeting on Sunday, local emission reduction policies are expected to be rolled out at an accelerated pace this week. Guided by the "anti-cutthroat competition" trend, the overall production capacity of DMC is projected to contract. After some monomer manufacturers suspended quotations, the DMC price rebounded to 13,500 CNY/ton over the weekend; as of press time, other monomer manufacturers have quoted DMC prices in the range of 13,700–14,000 CNY/ton.
The market has now entered an expectation-driven phase. If emission reduction measures are continuously implemented, they will bolster prices from the supply side while heightening concerns among midstream and downstream enterprises over subsequent capacity tightening and rising costs. Driven by this sentiment, to avoid the risk of supply fluctuations, some midstream and downstream enterprises will gradually accept high-price procurement and raise their selling prices amid cost pressures. A third round of price movements is expected to take place this week.
However, it is worth noting that end-user orders have not seen substantial improvement. Amid the price-following trend in the midstream and downstream sectors, speculative demand has declined, leaving the market supported solely by rigid demand. The pace of digesting the price uptrend is relatively slow, which will cap the magnitude of price increases. The overall market is expected to see a moderate upward trend with stable performance.