(August 11, 2026) The domestic silicone industry chain continues to experience cyclical recovery. As the most fundamental category of deep processing of silicone products, methyl silicone oil (dimethyl silicone oil) has seen significant changes in market transactions, product structure, and downstream applications following fluctuations in upstream single material materials. The industry is shifting from homogeneous price competition to a high-end and differentiated direction.

From the perspective of spot market conditions, driven by rising upstream DMC prices, coordinated industry production controls, and overseas capacity contractions, methyl silicone oil prices have recently continued to strengthen. The mainstream negotiation range for conventional viscosity industrial-grade methyl silicone oil remains high, with significant divergence in market supply. High-purity, electronic-grade, and daily chemical grade supplies are tight, and the circulation of ordinary cracked materials is large. The price gap between different quality products has further widened. Industry insiders remind downstream buyers to pay attention to raw material quality and avoid transaction risks caused by order cancellations and quality differences.

On the supply side, new monomer capacity for domestic organic silicon in 2026 is limited, and the industry continues to implement phased production controls, constraining effective supply; At the same time, many overseas chemical companies have shut down basic siloxane production units, shrinking overseas basic silicone supply, and some overseas orders have shifted to domestic markets, creating new opportunities for domestic methyl silicone oil exports. However, the cancellation of export tax rebates for primary polysiloxane also places higher demands on export companies' cost control. Domestic methyl silicone oil ranks first globally, but most capacity is concentrated in general industrial grades. There is still a supply gap for high-purity, low-volatility, pharmaceutical-food-grade, and electronic-specific methyl silicone oil, and high-end models need further reduction.

On the demand side, methyl silicone oil continues to expand its application scenarios due to its properties such as resistance to high and low temperatures, electrical insulation, low surface tension, chemical inertness, and physiological inertness. In traditional sectors, textile soft finishing, industrial demolding, anti-stick papermaking, and defoaming in wastewater treatment remain core consumer segments; Demand in the daily chemical and beauty sector remains stable. Methyl silicone oil, as a moisturizing and smoothing component, is widely used in creams, personal care, and makeup products; In emerging directions, areas such as new energy electronic packaging, precision instrument damping lubrication, and medical excipients have seen significant growth, driving rapid consumption of high-viscosity, low-impurity specialty methyl silicone oil, with the added value of high-end products significantly higher than that of generic grades.

Industry analysts say that in the short term, the methyl silicone oil market will continue to fluctuate with upstream individual suppliers, and the tight supply-demand balance pattern may continue. In the medium to long term, the profit margin for general methyl silicone oil, which is purely competing for low prices, will continue to shrink, and companies with continuous, stable production and the ability to consistently export high-purity grades will continue to gain competitive advantages. Downstream manufacturers are advised to hedge price fluctuation risks through long-term contract frameworks and reasonable safety stocks, while prioritizing the layout of high-quality silicone oil supply chains to meet the needs of end-product upgrades.

Looking ahead, as domestic downstream manufacturing upgrades, demand for low-volatility, high-consistency methyl silicone oil will continue to rise, accelerating the elimination of outdated and inefficient capacity. The future growth focus of the methyl silicone oil industry will shift from scale expansion to high-end deep processing.