On December 16, 2025, the Guangzhou Futures Exchange announced significant news: the main platinum futures contract surged to its daily trading limit on December 15, rising 7% intraday—the first time the contract has ever reached its upper price limit since listing. This move has fueled expectations of higher prices for platinum-based catalysts, a critical raw material in silicone production, with the market widely anticipating a new round of price increases.
Analysts note that this strong rally in platinum prices is not driven by short-term speculative sentiment but is instead underpinned by robust fundamentals. In recent years, the global platinum-palladium market has remained in a state of persistent supply shortages and low inventory levels. Meanwhile, platinum’s irreplaceable role in traditional automotive exhaust catalysts—combined with its accelerating adoption in emerging sectors such as hydrogen energy—is driving a systematic revaluation of platinum and palladium metals.
Against this backdrop of heightened volatility expectations for upstream raw materials, the downstream organosilicon industry has demonstrated stable operations. The sector’s growth momentum is shifting from “capacity expansion” toward “quality enhancement and structural optimization.” Temporary supply tightness caused by production cuts and maintenance at some plants, coupled with stronger year-end purchasing demand from downstream buyers, has led to smooth transactions and notably improved market activity.
According to the latest market data as of December 15, prices for key organosilicon products have remained stable: mainstream DMC is quoted at RMB 13,500–14,000 per metric ton, raw gum at RMB 14,500–15,000/ton, 107 silicone fluid at RMB 14,000–14,500/ton, and domestically produced methyl silicone oil at RMB 15,500–16,300/ton. Most producers are currently operating on a “sell-first, produce-later” basis. Leading manufacturers report significant order growth, with delivery schedules already booked through the Chinese New Year, reflecting an overall positive market sentiment.
Notably, despite the upbeat market performance, downstream buyers retain strong bargaining power and are adopting a cautious procurement stance. They show limited interest in spot or fragmented orders and increasingly prefer long-term, stable supply agreements.
Meanwhile, China’s A-share market has recently seen a wave of terminated merger and acquisition (M&A) deals. Between November 13 and December 13, at least 20 listed companies announced the termination or suspension of major asset restructuring plans, spanning hot sectors such as semiconductors, pharmaceuticals, chemicals, and information technology—highlighting growing investor caution toward high-risk, high-valuation M&A projects.
In summary, supported by rising platinum prices, an improving supply-demand balance, and recovering downstream demand, the organosilicon market is likely to maintain a stable trajectory in the near term, with limited risk of significant price swings. The industry’s path toward high-quality development is becoming increasingly clear, laying a solid foundation for a strong start in the coming year.
