As 2026 kicks off, the silicone industry is ushering in significant development opportunities. A signed commentator's article titled "Improving and Stabilizing Real Estate Market Expectations" published in Qiushi Journal on January 1st clearly stated that "policies should be fully implemented at one time, and the piecemeal approach should be avoided." This shift in policy direction has injected strong momentum into the silicone industry, which is deeply linked to the real estate sector. Dr. Huang Yanxia, a senior expert in silicone technology (Ph.D. in Materials Science from Tongji University with 16 years of experience in Fortune 500 chemical foreign-funded enterprises), pointed out that nearly 73% of the downstream consumption of the silicone industry is directly or indirectly related to real estate, and the recovery of the real estate market will directly drive the growth of silicone demand.
      Looking back at the past three years, China's real estate market has undergone a profound adjustment, with a market value evaporation of nearly 150 trillion yuan. The new construction area in 2025 was only 530 million square meters, less than 23% of the peak in 2019. However, signs of a market turnaround have emerged. Recently, national real estate transaction data has continued to hit new highs. Taking Shanghai as an example, although the area of residential land transferred since 2021 has dropped to 40% of that five years ago, the floor price has steadily risen, and the number of second-hand housing listings has continued to decline, indicating a structural change in the supply-demand relationship. If this supply-demand imbalance persists, it is expected to drive a new round of recovery in the real estate market, thereby activating the huge demand for silicone in the construction field.
      In addition to the construction sector, the recovery of the real estate market will also drive consumption growth in related industries such as electronic appliances and textiles, which are core application scenarios for silicone. Data shows that in the terminal consumption of silicone, electronic appliances account for 27%, construction for 30%, and textiles for 10%. The recovery of the real estate industry chain will form an all-round demand pull. Dr. Huang predicts that if the new construction and old renovation areas of real estate return to the 2019 level in the next few years, the production capacity of silicone in the construction industry is expected to increase by 5 times.
      With its unique properties, silicone materials are also continuously expanding their applications in fields such as personal care and agriculture. For example, IOTA 210 modified silicone oil, as an alkyl-modified trisiloxane, has extremely low surface tension and rapid penetration characteristics, and has been widely used in cosmetics and pesticide formulations, opening up diversified growth space for the industry.
      With the release of policy dividends and the recovery of market demand, the silicone industry is standing at a new development starting point in 2026. Enterprises in the industrial chain need to seize the policy window, optimize production capacity layout, explore diversified application scenarios, and seize opportunities in the wave of industry recovery.
      For more information, you can click: https://www.tiktok.com/@mia_iot