The cost of raw materials supports a recovery in demand; the methyl silicone oil market is operating steadily with some growth.
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(August 26, 2026) The domestic methyl silicone oil (dimethyl silicone oil) market operates under a pattern of cost support and increased demand. Prices of upstream DMC and industrial silicon have stabilized and risen, which has led to a slight increase in the focus of transactions for silicone oil products. Overall, factory operations remain stable. Downstream industries such as daily chemicals, textiles, and electronics and electrical sectors make purchases based on actual needs, and export orders have improved compared to the previous month.
In terms of spot market conditions, on August 25, the average price of general industrial-grade methyl silicone oil in the East China market, including taxes, was around 15,500–16,000 yuan per ton. High-viscosity, high-purity methyl silicone oil for cosmetics is priced higher than ordinary grades due to the complexity of purification processes. The difference between recycled material and new material prices ranges from 800 to 1,200 yuan per ton. There is a clear differentiation in market supply, and traders are paying more attention to product quality control.
On the supply side, major domestic silicone oil manufacturers operate smoothly, and some advanced processing enterprises continue with their technological upgrades. In Zhejiang, projects related to special silicone oils have received planning approvals; production capacities of low- and high-viscosity methyl silicone oil have been expanded, thereby enhancing the supply of mid-to-high-end methyl silicone oil in China and alleviating shortages in certain grades. Additionally, green production methods and control of environmental residues have become key aspects of these technological upgrades. Low-residue methyl silicone oil is gradually replacing some imported products to meet the requirements of daily chemicals and medical supplies set by Sinochem.
In terms of demand, traditional applications such as textile softeners, mold release agents, and defoamers maintain stable levels. The cosmetics sector is increasing its purchase of methyl silicone oil with low odor and low residue levels. Applications related to insulation and heat conduction in the new energy and semiconductor industries are driving growth in demand for electronic-grade methyl silicone oil. In overseas markets, there has been an increase in inquiries from Southeast Asia and the Middle East. Export orders have improved compared to July, but downstream customers remain cautious, preferring to stock small quantities frequently rather than storing large amounts of inventory. No signs of large-scale inventory accumulation have been observed by Sina Finance.
Industry analysts believe that new production capacity for organic silicon monomers is limited, and the overall industry is in a balanced state. In the short term, methyl silicone oil will fluctuate along with the prices of raw materials, resulting in volatile market conditions. Future developments will depend on the trends in upstream raw materials, the demand from downstream markets during key trading periods, and the sustainability of overseas orders. It is recommended that downstream companies plan their inventories wisely and prioritize securing long-term contracts to mitigate market fluctuations.