Collaborative optimization of the industry supply side has led to a steady stabilization and recovery of the market price of dimethylsilicone oil. 

1. The disorderly expansion in the early stage left behind hidden dangers, causing the industry to fall into a long-term low-price competition.
Over the past few years, the threshold for general dimethyl silicone oil was relatively low, and there was a phenomenon of concentrated and blind expansion in the industry. Low-end homogeneous products were crowdedly launched onto the market. Excess production capacity triggered continuous price wars, and the product prices remained close to the production costs for a long time. The overall profitability of the industry continued to decline, and a large number of small and backward production lines had weak risk-resistance capabilities. Even a slight fluctuation in raw material prices could easily lead to losses and production halts. The healthy development of the industry was hindered. With the implementation of new environmental and energy consumption regulations, the pressure to rectify the small and inefficient production lines intensified, and the problems of excess production capacity and low-efficiency capacity accumulation urgently needed to be resolved. 

2. Implementation of industry self-discipline, actively controlling production to stabilize market supply
In 2026, the industry reached a unified coordination plan internally. Major production entities voluntarily reduced the operating rate of their conventional silicone oil production lines, phased out and repaired inefficient and outdated facilities, and strictly controlled the new production capacity of low-end general silicone oil. Relying on the industry association, a production capacity early warning mechanism was established to continuously monitor and statistically analyze the national production and sales inventory data. To prevent the disruption of market order due to concentrated sales. The orderly production control lasting for two months effectively eliminated the accumulated inventory in the market, and the supply and demand relationship gradually stabilized, laying a solid foundation for the price recovery. 

3. Upstream raw material costs have risen, providing a rigid support for the price of silicone oil
The recent upward trend in the prices of upstream raw materials such as metallic silicon and basic silicon oxides has been observed. Coupled with the tightened energy consumption control in chemical industrial parks during the summer, the production energy costs such as electricity and steam have slightly increased. As a result, the production costs of enterprises have also risen simultaneously. Under the dual effects of cost pressure and supply tightening, the willingness of manufacturers to quote prices has generally increased, the behavior of selling at low prices in the market has significantly decreased, the enthusiasm of middlemen for stockpiling has recovered, and the activity of spot trading has significantly risen. 

4. The differentiation pattern continues to deepen, and the advantages of high-end products in resisting fluctuations become more prominent
During this round of market adjustment, the price of ordinary industrial silicon oil has risen slowly, while the prices of high-end special silicon oils such as medical, electronic, and thermal conductive have remained stable. High-end products have high technical barriers and stable market gaps, and are less affected by fluctuations in supply and demand cycles. Industry analysts believe that in the future, the industry will continue to accelerate the elimination of low-end production capacity, resources will continuously concentrate on high-quality production capacity, and the model of relying on low-end volume production for profit will gradually be phased out. The industry will enter a new stage of stable pricing and quality improvement.