In December 2025, the domestic silicone market experienced an unexpectedly strong rise, with prices of core products increasing across the board. According to industry data on December 15, the mainstream DMC price in East China was 13.5-14.5 RMB/kg, rebounding 15%-20% from the November low; silicone oil saw a monthly increase of over 3,000 RMB/ton, with domestic methyl silicone oil priced at 14.7-15 RMB/kg, and major brands and imported products exceeding 17 RMB/kg. Prices for 107 glue, raw gum, and other products rose simultaneously, marking a full upward shift in the industry.  


The contraction on the supply side was the main driving force. Leading companies jointly launched a three-month "voluntary emission reduction inspection campaign," achieving a 30% reduction, and actual production cuts in December reached 500,000 tons/year. Combined with unplanned industry maintenance, the DMC operating rate fell to 68%, keeping supply tight. Companies such as Yunneng Silicon Materials and Hongbo New Materials focused on high-end production, increasing the proportion of low-volatility products and further optimizing the supply structure.  


Policy and demand provided dual support. The Central Economic Work Conference clearly emphasized "expanding domestic demand + countering internal competition." As a key material in new energy and electronics, the incremental silicone market has opened up. Growth in demand for new energy vehicles and photovoltaic installations drove rigid procurement. Alongside low inventory levels in East and South China, traders were reluctant to sell, and year-end restocking by downstream buyers began, leading to an increase in transaction volumes.  


In the short term, with tight supply-demand balance, the market is likely to fluctuate at high levels, and a new round of price adjustments may come by the end of the month. In the medium to long term, attention should be paid to the continuity of emission reduction policies and the efficiency of demand transmission. Leading companies with technological and cost advantages are expected to stand out during the industry transformation.