(October 14, 2026) Information from the organic silicon industry chain research shows that the domestic methyl silicone oil industry is shifting from competition based on bulk production to the development of high-purity products and domestic alternatives. The structural demand in downstream sectors such as new energy, power equipment, and precision manufacturing continues to grow, with the focus of the industry moving from expansion of production to improving quality and efficiency.

Methyl silicone oil (dimethyl silicone oil) is the most basic liquid material in the organic silicon category. It possesses properties such as resistance to high and low temperatures, insulation, low surface tension, and chemical inertness. It is widely used as defoamer, release agent, damping fluid, cooling medium, and skincare ingredients in various industries including textiles, cosmetics, electronics, healthcare, and power generation.

From a market perspective, since the third quarter, the price of DMC raw materials used in upstream production has been rising steadily, causing the prices of domestic ordinary methyl silicone oils to remain within a stable range. Conventional grades are mainly supplied by domestic manufacturers, resulting in intense competition. However, high-purity methyl silicone oils for use in electronic and power applications still face technical challenges, and they were previously largely dependent on foreign brands. With domestic companies achieving breakthroughs in continuous polymerization and vacuum distillation technologies, the production capacity for low-purity methyl silicone oils is becoming more efficient. Some leading companies have established production lines capable of producing tens of thousands of tons per year, and their high-end products meet international environmental standards, thereby reducing dependence on imports.

Downstream demand shows significant differentiation. Traditional cosmetics and textile additives remain stable in demand; the majority of growth comes from areas such as power grid upgrades, energy storage, and thermal management in new energy vehicles. The demand for methyl silicone oil as a cooling medium in transformers and data center power equipment is increasing. Compared to traditional mineral oils, methyl silicone oil is flame-resistant, resistant to high temperatures, and has a longer service life, so its use is becoming more common in high-end power equipment. Additionally, there is an increase in orders for special methyl silicone oils with multiple viscosities and consistent batches from precision instruments and automotive shock-absorbing components, along with increased demand for small-scale custom orders.

Recently, industry players have continued to invest heavily in technological innovation. Many silicone material companies have launched projects to improve the production of low-purity methyl silicone oils. By using continuous production, solid catalysis, and closed-loop recycling processes, they aim to reduce energy consumption and by-products, as well as waste water and salt emissions, thereby promoting green production. Some companies have developed high-purity products whose metal ion and volatile component levels meet national standards, making them suitable for use in medical devices and high-end skincare products where strict compliance requirements exist.

Industry experts believe that the methyl silicone oil industry has moved beyond simple production competition. Future competition will focus on product purity control, flexible production capabilities for various viscosities, global compliance certifications (such as EU D5/D6 regulations and food/pharmaceutical compliance), and supporting technical services. Ordinary grades offer limited profit margins, while manufacturers with capabilities in low-purity, high-purity, and customized products will be able to command higher prices.

In the long term, with the recovery of global manufacturing and the development of new energy infrastructure, the methyl silicone oil market is expected to maintain steady growth. Domestic manufacturers need to continuously improve their testing systems and compliance documents, and seize opportunities for domestic substitution in overseas B2B purchases, thereby expanding their markets in Asia-Pacific and Europe.