(September 16, 2026) The domestic silicone market remains volatile. Methylsilicone (polydimethylsiloxane), which serves as a fundamental material in the silicone industry chain, exhibits a clear polarization: products with standard viscosity prices rise due to increases in upstream raw materials, while high-value-added methylsilicones such as those used in electronics and pharmaceuticals experience steady growth. Compliance with foreign regulations has become a key source of revenue for the industry.

Methylsilicone possesses properties such as resistance to high and low temperatures, insulation capabilities, low surface tension, and chemical inertness. It is a crucial functional material used in industrial demolding, defoaming, textile softening treatments, cosmetics, and electronic insulation and heat conduction. It is also the most widely used type of silicone oil in the silicone industry, with applications across various sectors including new energy, 5G, cosmetics, and precision manufacturing.

In recent market conditions, prices for methylsilicone with standard viscosity have continued to rise. The average price including taxes remains at around 37,000–38,000 yuan per ton. Prices for derivatives are slightly lower, but market sentiment is cautious, leading to inconsistent pricing and order disputes, which put significant pressure on downstream manufacturers. Industry analysts believe that this increase in prices is mainly due to rising costs of silicone intermediates like DMC. Many silicone sealant and additive manufacturers report that the cost increases exceed their internal affordability, resulting in some companies adopting strategies such as controlling orders or delaying new orders.

Behind this market differentiation, the main direction of industry development is shifting from “expanding production capacity” to “improving quality and upgrading”. Domestic producers of general-purpose methylsilicone have sufficient capacity, but competition is intense due to similar products. However, there is a long-term shortage of high-quality methylsilicone with low volatility and minimal ringbody residues. Over the past few years, domestic silicone companies have focused on developing continuous distillation processes to reduce ringoxygen residues such as D4 and D5 in their products, thereby reducing dependence on imports for high-end products. These patented technologies allow for stable production at ten thousand tons per year, and the product specifications meet strict EU environmental standards, making them suitable for use in high-end cosmetics, semiconductors, and new energy cooling systems.

Compliance with foreign regulations has become a priority for export companies. After the implementation of EU REACH regulations regarding the restriction of D4 and D5 ringbodies, domestic methylsilicone exporters have begun a comprehensive self-inspection process. Many manufacturers realize that even without directly using D4/D5 raw materials, trace amounts of ringbody impurities left during synthesis can lead to goods being seized or returned at European ports. Currently, when exporting methylsilicone to Europe, foreign customers require test reports from GC-MS and compliance statements regarding SVHCs. This forces domestic manufacturers to improve their removal and purification processes and enhance product purity control.

In terms of demand, traditional textile and cosmetics industries maintain stable demand. Emerging fields such as new energy vehicles, LED packaging, energy storage cooling, and lubricants for precision instruments contribute to the growth of high-end methylsilicone. Downstream manufacturers have higher requirements for product specifications; they no longer focus solely on viscosity but also impose strict limits on volatiles, ion content, thermal stability, and ringbody residues. The proportion of custom, small-volume orders is increasing annually.

Industry experts say that in the short term, methylsilicone prices will continue to fluctuate along with the prices of upstream silicone monomers, and cost pressures will continue to affect downstream markets. In the long term, the competitive landscape based solely on standard product prices will become less viable. Companies that can achieve low-ringbody purification and customized formulations will gain more market share. As global environmental regulations become stricter, domestic manufacturers with complete testing and compliance systems will have a greater competitive advantage in the international silicone oil market.