December 2025 has seen multiple key developments in the organic silicon industry, encompassing policies, market dynamics and corporate actions. The Catalogue of Encouraged Industries for Foreign Investment (2025 Edition), approved by the State Council and jointly released by the National Development and Reform Commission and the Ministry of Commerce, will take effect on February 1, 2026. It explicitly includes the development of new downstream organic silicon products and the application of organic silicon products in the encouraged scope, with focused support for the R&D and production of fluorosilicone materials in central and western regions, injecting policy impetus for the industry to attract foreign investment and optimize its layout.
In the market, data as of December 25 shows that the average domestic DMC market price remained stable at 13,600 yuan/ton. Most monomer manufacturers maintained controllable inventory levels, but weak downstream demand led to sluggish new order transactions, with prices expected to remain generally stable with minor fluctuations. Fumed silica prices continued to rise, with the weekly average reaching 19,307 yuan/ton, a month-on-month increase of 0.77%, supported by high costs and rising demand. Precipitated silica market stabilized, with the weekly average price of tire-grade products at 4,750 yuan/ton, as cost pressures curbed price declines.
Corporate dynamics have been notable. Guibao Technology responded to the impact of rising organic silicon raw material prices, stating that it ensures profit margins through stable supply chains, technological innovation and flexible pricing strategies. Its 10,000-ton/year organic silicon adhesive production line for power batteries has been put into operation, with rapid sales growth of silicon-carbon anode materials. Luxi Chemical announced the establishment of a joint venture polycarbonate sales company with affiliated parties, with a registered capital of 5 million yuan and a 51% stake, aiming to integrate sales resources and resolve horizontal competition.
In addition, a silicon tetrachloride explosion occurred at Nagoya University in Japan on December 23, injuring 3 students. The university has apologized and pledged to strengthen safety management, sounding the alarm for the safe use of chemicals.
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