Export Tax Rebate Cancellation for Primary Siloxane Takes Ef
Export Tax Rebate Cancellation for Primary Siloxane Takes Effect in 7 Days, Exporters Adjust Strategies (March 25)
Core Keywords: export tax rebate cancellation, April 1, primary polysiloxane, 3–5 percentage points margin squeeze, exporter strategy shift, high-value products
Core Sentence: With the April 1 export tax rebate cancellation for primary polysiloxane days away, exporters are adjusting strategies to offset margin pressure and shift to high-value products.
With only seven days remaining until China abolishes the 13% export tax rebate for primary polysiloxane (effective April 1, 2026), export-oriented silicone manufacturers are accelerating strategic adjustments to mitigate margin pressure, according to market updates on March 25. The policy change will eliminate a key cost advantage for domestic exporters, squeezing net profit margins by an estimated 3–5 percentage points for low-value primary silicone products. Data from regional trade associations shows that nearly 40% of small and medium-sized exporters in Jiangsu and Zhejiang provinces have suspended new low-margin overseas orders since mid-March, focusing instead on fulfilling existing contracts and shifting sales focus to the domestic high-end market.
Large leading enterprises with diversified product portfolios are better positioned to absorb the impact, as their export mix is dominated by high-value specialty silicone products not covered by the rebate cancellation. Many top firms are accelerating the launch of high-margin offerings such as electronic-grade silicone, EV thermal management materials, and medical-grade formulations to offset margin pressure from primary products. Industry experts comment that the policy is a long-term positive for the industry, as it will curb low-price, high-volume commodity exports and drive industrial upgrading toward high-value products. Customs data projections show that while total silicone export volume may moderate slightly in 2026, export value will remain stable or rise due to the improved product mix. Exporters are also exploring emerging markets in Southeast Asia and the Middle East to diversify their customer base and reduce reliance on traditional high-competition markets.
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