China Silicone Industry Annual Report 2025

In 2025, China’s silicone monomer capacity expansion entered a temporary lull. However, with the ramp-up of new capacities commissioned in 2024, operating stability improved significantly in 2025, supporting continued growth on the supply side. On the demand side, amid slower economic growth, geopolitical conflicts, trade frictions, and cyclical weakness in the real estate sector, demand growth for silicones in traditional application fields slowed, and corporate profitability remained relatively weak. Nevertheless, industries such as healthcare, new energy, and electrical & electronics benefited from supportive policies and industrial development, becoming the main drivers of downstream demand growth. In 2025, the growth rate of silicone monomer supply still exceeded that of demand, leading to intensified homogeneous competition in the market, with prices of silicone products—primarily DMC—falling to historic lows.

Looking ahead to 2026, China’s silicone industry will continue to face a complex and evolving market environment. On the supply side, amid overcapacity and profit losses, how much new silicone monomer capacity will ultimately materialize remains uncertain. With the support of “anti-involution” policies, whether product prices will gain upward momentum is also a key question. On the demand side, silicone monomer producers are continuously extending downstream through vertical integration, intensifying competition in midstream and downstream product markets. How profits will be distributed across the value chain remains to be seen. Which application sectors will continue to drive demand growth, and how will the demand structure evolve? On the cost side, how will prices of the primary raw material, industrial silicon, fluctuate, and what impact will this have on the silicone market? Addressing these questions, the Zhuochuang Information Silicone Market Annual Report provides in-depth data analysis, examines industry developments, and forecasts future trends.

The core competitiveness of Zhuochuang Information’s Silicone Market Annual Report lies in its comprehensive and detailed data accumulation. Starting from individual products and extending across the entire industry chain, the report not only offers thorough historical reviews and summaries but also interprets and analyzes industry changes over the next five years, providing clients with strong support for informed market decision-making.