Central Sentence: Upcoming policy changes and strict environmental controls will accelerate industry reshuffle and concentration improvement.
China will officially cancel the export tax rebate policy for primary polysiloxane starting April 1, 2026, a major policy change that will directly weaken the overseas price advantage of domestic silicone products and significantly compress the profit margins of export-oriented silicone enterprises.
In addition, the domestic silicone industry will implement stricter environmental control measures from March to May, with the industry-wide emission reduction ratio raised to 35%, leading to lower operating rates of some small and medium-sized production facilities and accelerated elimination of backward production capacities. Under the dual effects of policy adjustment and environmental constraints, the domestic silicone industry is accelerating reshuffle and transformation, and leading enterprises are actively adjusting their development strategies, shifting their focus to high-value-added fields such as electronic-grade silicone, new energy special silicone and high-performance sealants to enhance core competitiveness.
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