Facing persistently low product prices, in November 2025, domestic silicone companies have once again gathered to negotiate and promote anti-competition measures, drawing widespread attention within the industry. The core goals of these negotiations are clear:

1. To push the price of the core silicone product DMC back up to a reasonable range of over 12,000 RMB per ton.

2. To urge companies within the industry to implement self-regulated production cuts.

Current Market Conditions: DMC Price Nearing Cost Line

According to industry data, the current market price of DMC remains in the range of 11,000–11,500 RMB per ton, which has reached the full cost line for many small and medium-sized enterprises. Some companies are already experiencing operating losses, and the willingness to reduce or stop production is steadily increasing across the industry.

Historical Review: Previous Attempts to Protect Prices Through Production Cuts

It is worth noting that this is not the first time the industry has tried to relieve the pressures of over-competition by reducing production and protecting prices. In May-June 2025, leading domestic silicone companies organized production cuts. During this period, the overall industry operating rate dropped to about 60%, and the effect of the production cuts was significant. The price of DMC rose from 10,800 RMB per ton to 12,500 RMB per ton.

However, the good times did not last. After July, some of the smaller companies, eager to maintain cash flow, resumed production early and accepted orders at lower prices, causing the production cut alliance to quickly dissolve. As a result, the price of DMC once again fell back to near the cost line.

Short-Term and Long-Term Outlook for the New Plan

For this new plan, industry experts generally believe that short-term effects are to be expected, especially as many companies enter their year-end performance settlement cycle, making the implementation of production cuts likely more effective. However, in the long term, due to the lack of mandatory quotas and penalty mechanisms, some companies may still "rush ahead" during the production cuts, posing risks. Whether a long-term collaborative mechanism can be established will be the key to breaking the historical cycle.