(August 21, 2026) Recently, the domestic vinyl silicone oil market has seen both increased volume and prices. According to the latest data from Gaid Chemical Network, by mid-August, the average selling price of vinyl silicone oil in East China region had risen to 32,000–35,000 yuan per ton, an increase of 2%–3% compared to last week. The prices of some high-end products have exceeded 36,000 yuan per ton; in South China region, prices have also risen to 31,500–34,500 yuan per ton.

The main reason for this price increase is the limited new production capacity in the organosilicon monomer sector. Since 2026, the pace of new capacity additions in the organosilicon industry in China has slowed down. The price transmission chain from monomers to siloxanes and finally to silicone oils has become more tight. Demand in high-end applications such as electronic heat-conducting silicone oils, liquid silicone rubbers, and industrial release agents has increased, further contributing to the supply-demand tension.

Scale expansion: The domestic market is expected to exceed 4.5 billion yuan in 2026.

Industry data shows that the total size of the domestic vinyl silicone oil market is projected to reach 4.56 billion yuan in 2026, representing a 7.8% increase over previous years. Among these, demand for high-end models used in electronics, new energy, and medical applications is growing at a rate of over 15%, becoming the main driver of market growth.

The global market also shows steady growth. According to the latest report by 24ChemicalResearch, the global market for vinyl silicone oils will be approximately 900 million US dollars in 2026, and it is expected to grow to 1.32 billion US dollars by 2034, with a compound annual growth rate (CAGR) of 6.0%. The continuous expansion of electric vehicles, 5G electronics, and high-performance building materials will continue to drive demand in the next five years. Asia-Pacific remains the fastest-growing regional market.

Capacity expansion: Leading companies invest in high-end production lines.

Driven by demand, leading domestic companies are increasing their production capacity for high-end vinyl silicone oils. In March 2026, Runhe Materials announced plans to issue up to 370 million yuan worth of convertible bonds, using the funds for high-end organosilicon material projects. Once these projects are completed, they will add 5,000 tons per year of electronic-grade vinyl silicone oil production. Meanwhile, some domestic factories have established production lines capable of producing high-purity vinyl silicone oils at a scale of ten thousand tons per year. These facilities have also obtained both IATF16949 automotive standards and ISO13485 medical material certifications, indicating that domestic high-end products are now included in the automotive and medical supply chains.

Technological breakthroughs: Ultra-high purity products reduce reliance on imports.

For a long time, more than 70% of the vinyl silicone oils needed in high-end fields such as electronic packaging, medical devices, and semiconductor manufacturing were imported. However, in 2026, this situation is changing significantly. Domestic ultra-high purity vinyl silicone oils now meet technical standards where the metal ion content is less than 0.1 ppm and the volatile content is less than 0.3%, surpassing international strict emission standards. This makes them suitable for use in the dielectric encapsulation and protective coatings of IGBT modules in new energy vehicles. This technological advancement allows downstream liquid silicone rubber manufacturers to use domestic raw materials as qualified suppliers in sensitive areas such as automotive electronics.

Future outlook: From scale expansion to quality improvement.

Looking ahead to the second half of 2026, with the continued expansion of the new energy industry and the broadening of applications for liquid silicone rubber, demand for vinyl silicone oils is expected to remain stable and positive. The focus of the industry is shifting from mere scale expansion to quality improvement. Differentiated products such as low-ring modified vinyl silicone oils, high-vinyl specialty silicone oils, and heat-conducting modified vinyl silicone oils will become important areas for research and development. Additionally, driven by ESG policies and sustainable consumption trends, research into bio-silane precursors and green synthesis methods is accelerating. This indicates that the vinyl silicone oil industry is moving towards a stage of higher value added and greener development.