(October 29, 2026) Recent research on the organosilicon industry chain indicates that China’s methyl silicone oil industry is transitioning from competing in the market for general-purpose products to producing high-purity, low-trace contaminants, and stable batch-grade products. New energy power, precision electronics, and high-end personal care products have become the key areas of growth, and the pace of domestic substitution in this industry continues to accelerate.

Methyl silicone oil (dimethyl silicone oil) is the most basic liquid material in the organosilicon system. It possesses properties such as resistance to high and low temperatures, electrical insulation, low surface tension, and chemical inertness. It is commonly used as a defoamer, release agent, damping fluid, heat dissipation medium, and skincare ingredient, and is applied across various industries including textiles, cosmetics, electronics, and electrical equipment.

From a market perspective, since the third quarter, the prices of DMC raw materials used in the upstream industry have remained stable, which has helped support the cost of ordinary industrial-grade methyl silicone oil. The supply of standard grades is sufficient, and competition is intense. However, high-purity methyl silicone oil required for electronic encapsulation, new energy thermal management, and high-end cosmetics is still in short supply. These products require strict controls on volatile components, residual contaminants, and viscosity consistency; previously, they were mainly imported from abroad. With the implementation of continuous polymerization and precision distillation processes in China, many domestic manufacturers have been able to produce low-viscosity, high-purity methyl silicone oil at a stable level. Some of these patented technologies have even won national patent awards, gradually breaking through foreign technological barriers.

The demand structure in the downstream sector shows significant differentiation. In applications such as electronic control cooling in new energy vehicles, insulation in energy storage systems, and sealing of photovoltaic modules, there is a steady increase in demand for silicone oils that can withstand high temperatures and provide good insulation. Customers also have higher requirements regarding the stability and traceability of raw materials. In the personal care industry, demand for methyl silicone oil with low odor and low residues is increasing due to consumer upgrading trends. In the textile and rubber processing industries, users prefer general-purpose silicone oils that offer good cost-performance ratios, mainly used as softeners and release agents.

Industry experts believe that the methyl silicone oil market currently has an adequate supply of basic products, but high-quality products with well-controlled specifications and supporting technical services have greater bargaining power. At the same time, stricter environmental and safety regulations in China have led to the elimination of small-scale production facilities with outdated processes and weak quality control. As a result, industry concentration has increased, and production methods have shifted from simply expanding output to focusing on improving quality, efficiency, and green production practices.

Looking ahead, in the short term, methyl silicone oil prices are likely to remain within a stable range, following the fluctuations of upstream raw materials. In the long term, growth opportunities will lie in specialty modified methyl silicone oils and ultra-high viscosity silicone oils, which are high-value-added products. As Chinese organosilicon companies continue to improve their synthesis and purification technologies, the potential for import substitution of high-end methyl silicone oil will further increase, making it an important growth area for the organosilicon industry.