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 Meeting Sets the Tone, Supply Side Continues to Tighten

On September 2, a silicone industry meeting was held in Hebei Province. According to reports from Longzhong Information, the meeting concluded with an agreement to continue phased coordinated production cuts, maintaining a 50% emission-reduction target for September at the same level as August. The industry's overall operating rate currently remains at a low level of around 60%, with most enterprises' orders booked through mid-to-late September. The meeting set guided transaction prices for major products in September—DMC at 13,900 RMB/ton, 107 silicone rubber at 14,000 RMB/ton, and raw rubber at 14,800 RMB/ton—and confirmed that major monomer plants would raise prices by another 200 RMB/ton on September 7.

In terms of price performance, the silicone rubber spot market this week followed the upward trend of the upstream silicone market, showing a steady upward trajectory. Reference prices for 107 silicone rubber stood at 14,000–14,500 RMB/ton, while mainstream raw rubber references reached 14,800–15,000 RMB/ton. As of September 9, mainstream DMC quotations in the silicone market were concentrated at 14,000–14,500 RMB/ton, with Shandong monomer plants raising offers to 14,000 RMB/ton.

Supply-Demand Dynamics Continue to Improve

On the supply side, industry gross margins were compressed to their limits in 2025. Entering 2026, with coordinated industry actions continuing to advance, average silicone prices in the first half rose 13% year-on-year to 14,400 RMB/ton. Domestic DMC output from January to May fell 10.5% year-on-year, with no new capacity coming online in the first half, keeping total capacity stable at 3.44 million tons.

On the demand side, although some enterprises remain cautious about chasing higher-priced raw materials, end-user orders are gradually recovering, and rigid-demand procurement continues to advance steadily. Demand from emerging sectors—including adhesives for photovoltaics, lithium-ion batteries for new energy vehicles, and AI semiconductor chip packaging—continues to be released, driving an upgrade in the silicone demand structure from "construction-driven" to "technology-driven."

Leading Enterprise Performance Validates Industry Recovery

The industry recovery is directly validated in the semi-annual report of leading silicone enterprise Hoshine Silicon. The company's silicone segment generated revenue of 4.437 billion RMB in the first half, with a gross margin of 27.55%, up approximately 10 percentage points year-on-year. The company possesses 1.73 million tons per year of silicone monomer capacity, ranking first globally. Kaiyuan Securities noted that industry coordination has produced notable results, and with the "Golden September and Silver October" demand peak approaching, silicone prices are expected to continue their steady upward trajectory. As the world's largest silicone producer, the company will be the first to benefit from price-increase elasticity.

Looking ahead, supported by both supply contraction and the "Golden September" peak season, the tight supply-demand balance in the silicone market is expected to persist. However, whether peak-season demand materializes as expected remains the market's biggest uncertainty, with mid-September serving as a key observation window.

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