The following is an analysis of the international silicone market at the end of 2024:


Market supply and demand
- **Supply**: In recent years, due to factors such as high production costs and the hazardous chemical properties of products, overseas silicone devices have very little willingness to expand production, and some devices have even withdrawn their production capacity, resulting in the continued concentration of global silicone production capacity in China. Although a large amount of new production capacity will be put into production in China in 2024, from a global perspective, the growth of overall supply still depends mainly on the expansion of China's production capacity.
- **Demand**: Overseas demand will show a recovery trend in 2024. The rising expectations of US interest rate cuts and the rapid development of emerging economies such as India have strongly driven China's silicone exports. From January to July, China's polysiloxane exports reached 319,000 tons, a year-on-year increase of 39.1%. At the same time, with the gradual recovery of the global economy, the demand for silicone in various industries has also steadily recovered. For example, in traditional application fields such as construction, electronic appliances, and emerging fields such as new energy vehicles and photovoltaics, the demand for silicone products has maintained a growth trend.


Market price
The price trend of silicone in 2024 showed a certain volatility. Since the beginning of the year, prices have risen. According to Baichuan Yingfu data, on February 29, the price of silicone DMC reached 16,400 yuan/ton, a single-day increase of 5.13%. However, due to the concentrated release of China's new production capacity, the market supply pressure increased, resulting in a certain degree of price decline, but the overall price is still in a relatively reasonable range. As of December 16, the price reference of silicone DMC is 12,880 yuan/ton.


Industry competition pattern
- **Competition among enterprises**: In the international market, large multinational companies such as Dow still occupy an important position, but with the continuous development and growth of Chinese silicone companies, their share in the global market has gradually increased, and their competitiveness has also been continuously improved. With cost advantages, technological progress and large-scale production, Chinese companies are playing an increasingly important role in the global silicone market, forming a certain competitive situation with large international companies.
- **Regional competition**: From a regional perspective, Asia, especially China, has become an important region for global silicone production and consumption, with production capacity and output ranking first in the world. Traditional silicone production regions such as Europe and the United States have seen a decline in their share of the global market due to factors such as cost, but they still have certain advantages in high-end products and technology research and development.


Future development trends
- **Demand growth continues**: With the further recovery of the global economy and the rapid development of emerging industries, the application of silicone in new energy, electronics, medical and other fields will continue to expand, and the global silicone market demand is expected to maintain steady growth in the next few years.
- **Capacity expansion slows down**: After China's large-scale capacity expansion in 2024, it is expected that the subsequent global silicone capacity growth rate will slow down, and the market supply will gradually stabilize, which will help alleviate the current oversupply situation and promote the balanced development of the market.
- **Technology innovation drives**: In order to meet the growing market demand and improve product competitiveness, companies from various countries will increase their investment in technology research and development in the silicone field to promote the improvement of product performance and production processes, such as developing high-performance, environmentally friendly silicone products, and improving the efficiency of the production process and resource utilization.