Industry Shift: Silicone Price Hike Points to Stronger Future

2025-12-08

On November 25th, Dow Chemical issued a new price adjustment notice to its partners in Greater China. Its Consumer Solutions Silicones business line (Xiameter) announced that, effective December 10, 2025 (or as stipulated in contracts), it will increase the prices of its main silicone products by 10%-20%.

This division includes products such as dimethyl silicone oil, D4, linear silicone oil, raw silicone oil, vinyl silicone oil, 107 silicone oil, and bulk silicone oil. The price adjustment will vary depending on the specific product line.

350A1040 拷贝 Dow Chemical also stated in the announcement that this decision was made after "careful consideration and comprehensive evaluation," aiming to ensure the continued availability of high-quality, reliable silicone products to customers. For details regarding the specific product price adjustments, Dow Chemical recommends that customers contact their Xiameter sales representatives for further information.

About Dow Company

Dow Corporation (NYSE: DOW) is one of the world’s leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, transportation, and consumer applications. Our global footprint, asset integration and economies of scale, focused technological innovation, business leadership, and commitment to sustainability ensure profitable growth and help build a sustainable future. We have manufacturing facilities in 30 countries and territories and approximately 36,000 employees worldwide. Dow generated approximately $43 billion in sales in 2024.

This round of price increases across the entire industry chain is the result of multiple factors converging, with the fundamental reason lying in profound changes in the industry's fundamentals.

Supply Side: The peak of capacity expansion has passed, and international giants are raising prices simultaneously.

Demand Side: The drag from traditional construction demand is weakening, while demand from emerging sectors is strong.

Future Outlook: The industry's prosperity is expected to continue to recover.

Overall, this round of price increases has a strong foundation for sustainability, and the industry is entering a period of prosperity.
The price increase trend is expected to continue: The price and gross profit of organosilicon products are expected to enter an upward recovery channel.
High-end products are the clear direction: Future growth highlights and profit centers will be concentrated in high-end sub-sectors such as photovoltaic adhesives, electronic adhesives, new energy vehicle adhesives, and medical adhesives. Companies that can break through in these high-value-added applications will be better able to navigate the cycle and avoid being overwhelmed in the red ocean of traditional Construction Adhesives.
Risks to Watch: Future attention still needs to be paid to downstream acceptance of price increases, potential new capacity deployment, and the potential impact of macroeconomic fluctuations on demand.