Summary · why it matters
On October 9, the A-share silicone concept sector continued to strengthen. Dongyue Silicone hit the 20cm daily limit-up, Chenguang New Materials also hit limit-up, and Guibao Science and Technology, Xinyaqiang, and Hesheng Silicone followed with gains. Behind the sector's sustained strength are multiple factors including improved industry supply-demand dynamics, recovering product prices, and earnings repair at listed companies. At the end of 2025, the silicone industry's anti-involution conference was held, where companies reached a consensus to cut production by 30%, and silicone prices gradually recovered. Entering 2026, leading companies continued to reduce output and raise prices, effectively easing inventory pressure. Affected by the EU REACH environmental regulations and high energy costs, international chemical giants such as Dow and Wacker have announced shutdowns or reductions in silicone capacity, and the accelerated clearing of overseas capacity has provided market space for domestic companies with cost advantages. Taking the key intermediate product DMC as an example, the price was around 13,600 yuan per tonne in early September, rose to about 14,700 yuan per tonne in mid-September, and after entering October, mainstream market negotiation prices remained in the range of 14,400 to 15,000 yuan per tonne. On the evening of October 8, Dongyue Silicone disclosed its performance forecast for the first three quarters of 2026, expecting net profit attributable to the parent company of 547 million to 567 million yuan, a year-on-year increase of 19,050% to 19,750%, mainly driven by improved industry supply-demand dynamics that lifted prices of major products. In addition, expanding applications in semiconductors, data center cooling, and new energy are creating new growth opportunities. Jianghan New Materials' production facilities with annual capacity of 10,000 tonnes of 6N-grade silicon tetrachloride and 5,000 tonnes of 9N-grade TEOS are currently in the equipment installation stage and are expected to begin trial operation in early 2027. Industry insiders caution that whether new demand layouts can translate into actual performance still depends on the progress of project commissioning, customer certification, and demand realization at the relevant companies.
Dow Inc
Wacker Chemie AG
Shandong Dongyue Organosilicon Mat
Chengdu Guibao Science Tech
Xinyaqiang Silicon Chemistry Co Ltd
Jiangxi Chen Guang New Materials Co Ltd
Hoshine Silicon Ind Co Ltd
Hubei Jianghan New Materials Co. Ltd. A