Entering September, the silicone market has ushered in the traditional "Golden September" peak season. Driven by sustained industry-wide coordinated production cuts and the gradual release of downstream restocking demand, silicone product prices have shifted upward across the board, with early signs of "peak season" market characteristics emerging.

Industry Meetings Set the Tone, Supply Side Continues to Tighten

On September 2, the silicone industry held a special meeting in Hebei Province to discuss market order and price restoration. According to reports from Longzhong Information, the meeting concluded with an agreement to continue the phased coordinated production cuts. Most monomer plants have pre-sale orders booked through mid-to-late September, with relatively low inventory pressure, prompting manufacturers to raise offer prices to around 14,000 RMB/ton.

By product category, as of September 6, reference prices for 107 silicone rubber stood at 14,000–14,500 RMB/ton, raw rubber at 14,800–15,000 RMB/ton, and DMC (dimethylcyclosiloxane) at 13,800–14,300 RMB/ton. Industry analysts noted that the September meeting further reinforced the price-stabilization stance—maintaining a 50% emission-reduction target for September and, for the first time, setting guided transaction prices across the entire product line.

In terms of operating rates, the overall silicone industry utilization rate remains around 60%, at a relatively low level. Facilities in North China, Shandong, Jiangxi, and other regions continue to operate at reduced capacity, with some production lines undergoing maintenance shutdowns. The tight supply-side situation is unlikely to see substantial change in the short term.

Prices Steadily Climb, Downstream Rigid Demand Provides Support

On the price front, mainstream DMC quotations have moved up further this week from last week's 13,600–13,800 RMB/ton range to 13,800–14,300 RMB/ton, with the transaction center of gravity steadily rising. According to reports from Silicone Mall, DMC prices are planned to increase by another 200 RMB/ton this week, testing downstream acceptance through a "small-step, slow-pace" approach, while also driving mid- and downstream product price follow-through and facilitating synchronized profit recovery across the industrial chain.

On the demand side, although some enterprises remain cautious about chasing higher-priced raw materials, end-user orders are gradually picking up, and rigid-demand procurement continues to advance steadily. Low downstream inventory levels also leave flexible room for subsequent restocking. For 107 silicone rubber, mainstream monomer plants have order books scheduled through late September, with some rush orders seeing extended lead times, reflecting a certain degree of resilience in downstream demand.

Outlook: Whether Peak Season Expectations Materialize Remains to Be Seen

In the short term, the market may enter a phase of digesting gains through consolidation—each round of concentrated price increases typically requires time to verify the actual effect of price transmission to downstream sectors. Institutions forecast DMC trading ranges of 13,800–14,200 RMB/ton for September, with the overall improving trend remaining intact.

However, whether peak-season demand materializes as expected remains the market's biggest悬念. If end-order growth falls short of expectations, downstream resistance to high prices may intensify, potentially exposing the market to correction pressure driven by "expectation gaps." Mid-September will be a key observation window, during which all parties will adjust their sales and procurement cadences based on actual transaction outcomes.

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