Higher Raw Material Costs Lead to Polyether Siloxane Price Hikes

Higher Raw Material Costs Lead to Polyether Siloxane Price Hikes

1. Product Overview

Polyether siloxane, also commonly known as polyether-modified polysiloxane, falls into the category of non-ionic surfactants. It is synthesized by copolymerizing siloxane main chains with EO/PO polyether side chains. Under normal room temperature conditions, it presents a clear liquid form, ranging from colorless to light yellow.

This product boasts outstanding comprehensive performance: its surface tension can be lowered to 20–25 mN/m, paired with excellent wetting and emulsifying capabilities. It also features good water solubility and dispersibility, plus remarkable thermal stability that remains steady even at temperatures above 200℃. Industry practitioners also refer to it as water-soluble silicone oil, hydrophilic silicone oil or polyether-modified polydimethylsiloxane in daily business.

2. Standard Industrial Grade Technical Index

3. Core Application Fields (Indispensable Industrial Auxiliary)

(1) Coatings & Printing Inks (42% market consumption)

Widely applied as leveling agent, defoamer and wetting agent. It effectively eliminates surface shrinkage holes and fish-eye defects, while boosting film gloss and smoothness. The conventional addition dosage is kept between 0.1–2.0%.

(2) Textile Auxiliaries (29% market consumption)

Served as fabric softener, antistatic agent and hydrophilic finishing agent, it greatly improves fabric hand feel and moisture absorption performance for downstream textile production.

(3) Polyurethane Industry

Used in PU foam and adhesive production as foam stabilizer and leveling agent. It locks foam structure effectively, avoids foam collapse, and upgrades thermal insulation as well as sealing performance.

(4) Daily Chemicals & Cosmetics

Acts as emulsifier, moisturizer and film-forming ingredient, optimizing skin use feeling and overall formula stability of end products.

(5) Pesticide & Agricultural Sector

Applied in aerial pesticide spraying as spreading and wetting additive, enhancing the attachment and coverage of liquid pesticide on crop foliage.

(6) Plastics & Rubber Industry

Functioning as internal lubricant, release agent and anti-fog agent, it optimizes processing efficiency and improves finished product surface quality.

4. Industry Position & Product Value

(1) Unique irreplaceable performance

 It perfectly integrates the low surface tension advantage of silicone materials and the high compatibility of polyether hydrophilic materials. It is one of the few premium auxiliaries that can balance wetting, leveling and foam stabilization in all water-based system formulas.

(2) Inelastic downstream demand

 Coatings, textiles, polyurethane, daily chemicals and pesticide industries are all highly reliant on this material. Any supply shortage will directly trigger common quality problems such as surface shrinkage, poor leveling effect, foam collapse and insufficient adhesive force.

(3) Concentrated global supply layout

 China contributes 70% of the world’s total production capacity. The domestic market is mainly occupied by top qualified manufacturers, while most small-scale factories fail to stable output with consistent quality standards.

(4) High technical entry barriersProduction relies on high-standard platinum catalyst, high-purity raw material matching and precise constant-temperature synthesis technology. It cannot be simply copied or replaced by low-cost alternatives.

5. Key Drivers Behind Sustained Price Rises (Nov 2025 – Apr 2026)

(1) Skyrocketing upstream raw material costs (core driving factor)

Silicone DMC price jumped from 11,000 RMB/ton in November 2025 to 15,000 RMB/ton in April 2026, marking a year-on-year surge of over 35%.Methanol alone rose by 1,200 RMB per ton in March 2026, pushing DMC comprehensive cost up by another 1,400 RMB/ton.Propylene oxide and other polyether raw materials accumulated a 30% price hike in 2026, bringing synchronous cost growth to polyether segment production.

(2) Production curbs & tight market supply

Major domestic silicone producers have jointly cut output since November 2025 to stabilize market prices. The production reduction rate was lifted from 30% to 35% starting March 2026.

Global overseas capacity also keeps shrinking: Dow Chemical plans to shut down its 145,000-ton DMC production line in the UK in mid-2026; Dongyue Silicon Material also faced output suspension due to safety incident in December last year.

Currently spot goods are in tight supply, industrial inventory stays at historical low levels, and order delivery cycles are obviously extended. Leading manufacturers hold goods rationally and reject low-price order deals.

(3) National export policy adjustment

The 13% export tax rebate for primary polysiloxane products was officially abolished on April 1, 2026. The move directly raised overall export operating costs, making low-margin orders unprofitable and pushing the whole industry to adjust pricing upwards.

(4) Rising downstream demand & cost transmission

Boosted by rapid development of photovoltaic, new energy vehicle, water-based coating and green pesticide industries, downstream market consumption keeps expanding. China’s silicone-related product export volume achieved a 12% year-on-year growth in Q1 2026.

Besides, continuous rising expenditure on environmental protection compliance, safety supervision and regional conflict-affected international logistics further lift comprehensive production and operation costs across the whole industrial chain.

To sum up, the joint impact of raw material inflation, voluntary production cuts, tax rebate cancellation and steady rigid demand leads to continuous cost growth. The current uptrend is driven by real market fundamentals rather than artificial speculation.

6. Market Trend Outlook (April–December 2026)

Short-term Trend (April–June, peak consumption season)

Market prices will remain firm at high levels with strong downside resistance, expected to rise moderately by 5%–10%. From May to June, supported by peak seasonal demand from coatings and textile sectors, persistent production restriction and high raw material costs, prices will maintain an upward track with no obvious drop. Tight spot supply will further push up premium prices for small-batch and urgent orders.

Mid-term Trend (July–December 2026)

The market will run in high-level fluctuation with an overall upward price center, and no sharp slump will occur throughout the year.

DMC average annual price is predicted to hit 16,000–17,500 RMB/ton in 2026, up 34%–47% year on year. As a deep-processed silicone derivative, polyether siloxane price moves closely with upstream raw materials and presents larger fluctuation elasticity. It is impossible for market quotes to return to the low level seen in 2025.

Closing Remark

2026 has ushered in a long-term price rising cycle for silicone and polyether siloxane products. Under the pattern of tight supply-demand balance and solid cost support, product prices will stay high and stable for a long period ahead.

Henan Brilliant Biotech has built up 24 years of rich operational experience in the chemical raw material industry. We are certified Gold Supplier on both Alibaba and Made-in-China platforms, and have attended the Canton Fair as a regular exhibitor for more than ten consecutive sessions. We always adhere to professional service, solid credibility and honest business philosophy.

Choosing to cooperate with Henan Brilliant Biotech means you get stable supply guarantee, reliable business support and hassle-free long-term partnership. We sincerely look forward to establishing win-win cooperation with global clients.