Industry News

Silicone Price Index Rises 8.2% in April, Cost Pressures Forc

Keywords: Silicone price index, cost pressure, industry consolidation, small manufacturers, Hongye Silicone

Core Sentence: China’s silicone price index rose 8.2% month-on-month in April 2026, driven by higher raw material and energy costs; persistent cost pressures are forcing small, low-margin manufacturers to exit the market.

Details:

According to data from the China Organic Silicon Industry Association, the national silicone price index rose 8.2% month-on-month in April 2026, reaching 128.5 (2020 base = 100). The increase is driven by rising costs across the supply chain: metal silicon (up 3%), DMC (up 12%), natural gas (up 5%), and logistics (up 7%). Small and medium-sized silicone manufacturers, with limited bargaining power and low profit margins (5–10%), are facing severe cost pressures. Many are unable to pass on price increases to downstream clients, leading to reduced profits or losses. Industry data shows that 15% of small silicone manufacturers exited the market in Q1 2026, primarily low-end producers of generic sealants and low-quality mold silicone. This trend is accelerating industry consolidation, with leading manufacturers gaining market share. Hongye Silicone, with its scale advantages, vertical integration, and high-value product portfolio, maintains a healthy profit margin (20–25%). The company continues to invest in R&D and production capacity expansion, positioning itself to benefit from industry consolidation and capture a larger share of the high-end market.

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Silicone Price Index Rises 8.2% in April, Cost Pressures Forc

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