Silicone metal, the key upper stream raw material of silicone rubber has reached a record high to RMB 30,000-30,500 / MT, in Sep 6th, 2021.
DMC price (derived from silicone metal) also reached at record high, RMB 42,000 / MT.
MARKET FORECAST
With the control of energy consumption and power limit continue, the expectation of supply contraction will be a strong support for silicon metal price. At the same time, the strong demand of silicone and all favorable factors will continue to push silicon metal to a new high. In September, two monomer devices were scheduled for annual overhaul. Now, due to insufficient silicon metal, the operation of monomer plants also show an unstable trend, the supply of silicone DMC is getting worse, and the middle and down stream are in desperate situation for raw materials.
In the short term, the mismatch between supply and demand cannot be alleviated. Upstream offers have a stronger selling powder, and profits can remain high, while the profits of middle and downstream manufacturers are highly squeezed. Their operating difficulties have gradually become industry problems.
For the future trend, most people in the industry said that the current high price contains "a good sum of water", which has seriously affected the healthy development of the silicone industry. But in this shortage wave, it is difficult to assert the future trend of ups and down. In the short term, the price increase trend has not come to an end.
In recent months, silicone prices in China have surged to record highs, driven by a combination of tight supply, rising production costs, and strong end‑use demand. Key factors include:
Supply pressures: Environmental constraints, energy controls, and power rationing across major production centers like Inner Mongolia, Yunnan, and Sichuan have limited output, tightening available volumes businesswire.com+10crugroup.com+10crugroup.com+10.
Cost inflation: Spiking raw materials, electricity, logistics, and labor expenses—compounded by China’s dual‑control energy policies—have elevated the cost floor for silicone production linkedin.com+1ywlchemical.com+1.
Price adjustments by major players: Leading firms such as Dow raised silicone prices in Greater China by 5–10% (effective April 2025), adding upward pressure across the market echemi.com.
Firm demand trajectory: Continued expansion in sectors like construction, automotives, and electronics is sustaining demand for silicone elastomers and fluids echemi.com+6linkedin.com+6businesswire.com+6.
As a result, China’s average domestic silicone pricing—across monomers, oil, and rubber—is hovering at near‑record levels. Unless supply eases or cost pressures subside, prices are likely to stay elevated in the near term.
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