In early August 2026, the domestic organosilicon industrial chain has witnessed remarkable changes. Major silicone monomer producers carried out coordinated production‑cut and price‑stabilization measures. Operating rate has voluntarily fallen to 65‑70%, effectively easing previous inventory pressure and driving a market rebound across silicone oil segments.

　　The mainstream transaction price of conventional dimethyl silicone oil is hovering at 13800‑14500 RMB/ton. Leading manufacturers plan another price increase of 400‑600 RMB per ton in mid‑to‑late August. Spot supply of upstream DMC and D4 gets tighter. Order backlogs extend to mid‑late August, most manufacturers keep finished‑goods inventory at low levels. Downstream clients mainly place orders based on actual consumption, large‑scale stock‑up has not appeared. Market participants believe that the sustainability of price growth depends on production‑cut execution and terminal purchasing demand coming with the traditional peak season in September.

On export side, the abolishment of export tax rebate for basic polysiloxane squeezes profit margin of low‑end silicone oil. Domestic manufacturers are transforming export product mix, shifting focus toward high‑value‑added products including modified silicone oil, high‑phenyl silicone oil, fluorosilicone monomers and special silicone gum. Overseas demand from Southeast Asia, Middle East, Latin America and Eastern Europe keeps rising. Low‑cyclic silicone oil has become a mandatory access requirement for exporting to EU market under updated REACH regulations, pushing domestic factories to upgrade purification processes.

　　Domestic substitution makes solid progress for high‑end specialty silicone materials. Large‑scale production lines for high‑phenyl silicone oil serve semiconductor packaging, new‑energy and aerospace sectors. It is projected that the localization rate of premium phenyl silicone oil will exceed 70% by the end of 2026. New capacity of TFS fluorosilicone monomer boosts the whole fluorosilicone industrial chain. Phenylene‑phenylether raw gum gains more application cases in national defense and nuclear‑industry supporting projects.

　　The 2026 Asia Organosilicon Industry Conference & Exhibition will be held in Shanghai from Aug 12 to 14. New‑energy vehicles, semiconductor packaging, aerospace and nuclear special materials are core discussion themes. Closed‑loop recycling technologies are widely adopted, and R&D of bio‑based silicone oil achieves phased progress.

　　Challenges remain: fierce homogenized competition exists in general‑grade silicone oil market. Self‑sufficiency rate for a small number of aerospace‑grade and electronic‑grade silicone oil still needs improvement. Custom molecular‑structure development capability becomes key competitive factor. Looking ahead, conventional silicone oil will stay firm during Aug‑Sep peak‑season preparation, while phenyl, fluorosilicone and reactive modified silicone oil will keep benefiting from high‑end downstream demand. Enterprises are suggested to avoid low‑end price competition and focus on high‑value‑added product lines.