Since November 2025, when Hoshine Silicon Industry and other leading firms launched the “High-Quality Development Initiative for the Organosilicon Industry,” coordinated mechanisms have operated steadily, beginning to reverse the long-standing pattern of destructive price competition. At a second industry meeting in January 2026, participants refined rules—including establishing a DMC guidance price range (RMB 13,000–13,200/ton), sharing weekly inventory data, and restricting new capacity approvals.
This effort received policy backing. The NDRC’s Guiding Opinions on Regulating Price Competition in the Chemical Industry (December 2025) stated: “Encourage industry associations to establish capacity warning and coordination mechanisms to prevent wasteful overexpansion.” Today, the CR8 (combined market share of top eight firms) stands at 81%. Integrated leaders, leveraging cost advantages, have helped sector gross margins recover from negative territory in Q3 2025 to over 15%.
More profoundly, investment logic is shifting. Previously, expansion relied on scale; now, firms prioritize technical barriers and application-specific solutions. For example, Wynca Group’s 50,000-ton/year specialty silicone oil project (announced February 2026) directly serves customized needs in new energy vehicles and 5G communications. Dongyue Group is focusing on fluorosilicone R&D for aerospace seals.
