---
title: "Silicone production cuts support prices, \"anti-involution,\" Hoshine Silicon, LUXI CHEMICAL, and others may face value reassessment"
type: "News"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/news/268054947.md"
description: "Recently, the silicone industry has improved market prices through production cuts and price increases. Leading companies in the industry, such as Hoshine Silicon and LUXI CHEMICAL, may face a value reassessment. Meetings on November 12 and 18 reached targets of a 30% production cut and a price increase to 13,500 yuan/ton, driving market prices up by 18.2%. The prices of silicone intermediates and gross profits have significantly increased, and the industry's prosperity is expected to continue improving"
datetime: "2025-12-01T09:55:52.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/268054947.md)
  - [en](https://longbridge.com/en/news/268054947.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/268054947.md)
---

> 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/268054947.md) | [English](https://longbridge.com/en/news/268054947.md)


# Silicone production cuts support prices, "anti-involution," Hoshine Silicon, LUXI CHEMICAL, and others may face value reassessment

Recently, the silicone industry has been frequently taking "anti-involution" actions, and market prices have risen in response, creating positive conditions for the valuation performance of industry leaders.

This image may have been generated by AI
Against the backdrop of the policy call for "anti-involution," on November 12 and November 18, domestic silicone industry meetings were held to discuss industry development, reaching a consensus on the silicone price mechanism and industry linkage production reduction mechanism. **As the meetings clearly released expectations for production cuts and price increases, the recent silicone market prices have been boosted.** According to Baichuan Yingfu data, as of November 21, the domestic silicone intermediate price was 13,000 yuan/ton, an increase of 18.2% compared to early November.

On the enterprise side, the silicone industry currently shows a high concentration pattern, with companies like Hoshine Silicon (603260.SH), Xingfa Group, Dongyue, and Xin'an shares having leading silicone monomer production capacities, highlighting the role of leading enterprises in ensuring the execution of production cuts. Some companies have stated that the market has core conditions for recovery from the bottom, and the recent significant price increases of silicone products are promoting a virtuous cycle in the industry chain, with the subsequent prosperity expected to continue improving.

**Silicone Industry Production Cuts Support Prices**

**The industry chain may welcome an upward cycle of prosperity**

**The silicone industry's collaborative "anti-involution" is entering a substantive implementation stage.** On November 12, LUXI CHEMICAL led an industry "market rescue conference," where major domestic silicone companies reached a key goal of "30% production cut + price increase to 13,500 yuan/ton," with plans for full implementation in early December. On November 18, Hoshine Silicon led a meeting at the level of actual controllers of silicone monomer plants to refine production reduction supervision and price coordination mechanisms, strengthening the consensus and determination for industry collaboration in "anti-involution."

Following the industry meetings that clearly released signals to support prices and expectations for production cuts, some monomer plants have recently raised their quotes and limited order acceptance, **resulting in a rise in silicone prices and improved product profitability.** According to Baichuan Yingfu data, as of November 21, the domestic silicone intermediate price was 13,000 yuan/ton, an increase of 18.2% compared to early November; the average gross profit of the silicone intermediate industry rose to 1,209 yuan/ton, an increase of 2,650 yuan/ton compared to early November.

Silicone materials, known as "industrial monosodium glutamate," possess excellent properties such as temperature resistance, weather resistance, electrical insulation, and low surface tension, making them widely used in industries such as construction, electronics and electrical, textiles, automotive, machinery, metals and paints, pharmaceuticals and medical, and military.

**Many institutions believe that the supply-demand pattern of silicone will improve in the long term, and are optimistic about the recovery of the silicone industry.** According to a research report from Guotou Securities, on the supply side, Baichuan Yingfu data shows that from 2019 to 2024, China's nominal production capacity of silicone intermediates will expand from 1.52 million tons to 3.44 million tons, with a compound annual growth rate of 17.8%. Looking ahead, there will be no large-scale new production capacity, and the expansion cycle is nearing its end In terms of demand, with the simultaneous rise in the fields of new energy, electronics, and semiconductors, the application areas of organic silicon are expected to accelerate their extension towards the high end of the value chain. From January to September 2025, China's apparent consumption of organic silicon reached 1.513 million tons, a year-on-year increase of 19.6%, which may reflect the rapid growth of new application areas offsetting the decline in traditional demand areas. The demand for the organic silicon industry is still expected to maintain a high growth trend in the future.

**Currently, organic silicon production capacity is continuously concentrating towards leading enterprises.** According to a research report by Everbright Securities, as of the end of June 2025, the total domestic organic silicon monomer production capacity is approximately 6.9 million tons/year, with Hoshine Silicon, Xingfa Group, Dongyue, Xin'an Shares, LUXI CHEMICAL, and Sanyou Chemical collectively holding 4.28 million tons/year of organic silicon monomer capacity, accounting for 62% (see attached table). This relatively concentrated market structure is conducive to rational competition and price stability in the industry, highlighting the leading role of major enterprises.

With the rebound in organic silicon prices, several leading enterprises have expressed confidence in their subsequent operating conditions. For example, Sanyou Chemical recently stated on the investor interaction platform that the company currently has an annual production capacity of 400,000 tons of organic silicon monomer. Since the beginning of this year, the organic silicon industry structure has gradually optimized, and the market has core conditions for recovery from the bottom, especially as the recent price increase of organic silicon products has significantly promoted a virtuous cycle in the industry chain, with subsequent prosperity expected to continue improving.

**However, not all enterprises' organic silicon businesses are boosted in the short term.** According to Dongyue's announcement in July this year regarding a fire accident, a fire occurred in the B bed of the synthetic phase three, triggering an emergency shutdown system. It is understood that this facility involves 300,000 tons of organic silicon monomer capacity, accounting for half of the company's total capacity. On the investor interaction platform, Dongyue responded on September 30 regarding the recovery situation of its damaged production line, stating that the company is actively promoting the rectification and resumption of related facilities, with the resumption time being uncertain.

**Hoshine Silicon turns a profit in a single quarter**

**The company expects an improvement in the organic silicon supply-demand pattern**

As a leading enterprise in the silicon industry chain, **Hoshine Silicon has a leading scale of organic silicon production capacity in the industry.** According to the company's semi-annual report, Hoshine Silicon is one of the companies with the most complete business chain and the largest production scale in China's silicon-based new materials industry, producing industrial silicon, organic silicon, and polysilicon simultaneously, forming a synergistic effect. As of June 2025, the company's industrial silicon capacity is 1.22 million tons/year, and organic silicon monomer capacity is 1.73 million tons/year.

In terms of performance, Hoshine Silicon reported a net loss attributable to shareholders of 321 million yuan in the first three quarters of 2025, **attributing the pressure on performance to the year-on-year decline in sales volume and sales prices of main products, as well as losses from the photovoltaic sector's shutdown.** However, entering the third quarter, Hoshine Silicon has achieved profitability in a single quarter, with a net profit attributable to shareholders of 76 million yuan in the third quarter According to the quarterly operating data disclosed by Hoshine Silicon, although the prices of products such as cyclic siloxane and silicone oil have not yet escaped the downward price trend in the third quarter, the volume and price of industrial silicon products have both increased compared to the previous quarter. During this period, the sales volume of industrial silicon reached 347,000 tons, a quarter-on-quarter increase of 61.69%; the average price was 7,932.75 yuan/ton, a quarter-on-quarter increase of 8.11%.

At the third quarter performance briefing held in November this year, Hoshine Silicon expressed optimism about the improvement of the supply-demand pattern for industrial silicon in the future. It was introduced that in the fourth quarter, with the arrival of the dry season, the operating rate in the main production areas in the southwest is expected to decline; on the demand side, the photovoltaic industry is expected to gradually recover through "anti-involution" measures, while the silicone industry continues to release demand driven by emerging downstream fields such as electronics and new energy, which may lead to an improvement in the supply-demand pattern.

**It is worth mentioning that in the third quarter of this year, the photovoltaic industry's "anti-involution" continued to advance, focusing on solving the problem of low-price disorderly competition, which will also benefit silicon material companies like Hoshine Silicon.** According to Baichuan Yingfu data, with the advancement of the photovoltaic industry's anti-involution, as of mid-September, the average market price of polysilicon has risen to 47,600 yuan/ton, an increase of 58% compared to the low point in June.

Hoshine Silicon mentioned in its 2025 semi-annual report that looking ahead to the second half of the year, the photovoltaic industry has entered a critical period of deep adjustment and structural reshaping. The central government and industry associations are implementing active interventions through multi-dimensional measures such as "anti-involution" actions, and all parties in the industry are forming a joint force to jointly solve the development dilemma. It is expected that through capacity integration and industry self-discipline, the photovoltaic industry will return to a healthy development track as soon as possible, which will further have a positive impact on the market supply-demand pattern of the upstream industrial silicon industry.

**Currently, Hoshine Silicon is simultaneously promoting the extension of the industrial chain, and silicon carbide materials are expected to contribute significant performance growth in the future.** According to the company's 2025 semi-annual report, in the field of silicon carbide technology, Hoshine Silicon has fully mastered the core process technologies of the entire industrial chain, including raw material synthesis, crystal growth, substrate processing, and wafer epitaxy for silicon carbide materials. In addition, the company continues to delve into the high-end silicon carbide powder field, successfully developing ultra-high-purity silicon carbide ceramic powders that meet the demand for high purity and customized powders in various fields such as semiconductors, thermal spraying, and high-temperature structural components, as well as high-purity semi-insulating silicon carbide powders that meet the requirements for the growth of silicon carbide gemstone crystals and optical waveguide crystal growth.

**LUXI CHEMICAL benefits from "anti-involution" across multiple products**

**Continuously consolidating industrial chain integration**

As a leading comprehensive chemical enterprise in China, LUXI CHEMICAL (000830.SZ) has main businesses including new chemical materials and basic chemicals. Among them, the new chemical materials business contributes over 60% of the company's revenue, mainly including products such as polycarbonate, nylon 6, caprolactam, and silicone.

According to the company's 2024 annual report, during the reporting period, LUXI CHEMICAL's designed capacity for silicone was 50,000 tons/year, with a capacity utilization rate of 93.76%. Additionally, according to the announcement disclosed by the company in March 2025 regarding the commissioning of the 400,000-ton silicone project, the project has successfully completed all production processes and has been safely and smoothly put into production. **This means that LUXI CHEMICAL's silicone capacity has been fully enhanced.** \*\*

In the first three quarters of this year, LUXI CHEMICAL achieved a net profit attributable to shareholders of 1.023 billion yuan, a year-on-year decrease of 35.03%. In the "Investor Relations Activity Record" disclosed in November this year, LUXI CHEMICAL explained the reasons for the decline in performance in the first three quarters. During this period, although the company's production and sales volume increased year-on-year, affected by market supply and demand factors, the prices of some chemical products decreased year-on-year, and the decline in product prices was greater than the decline in raw material procurement prices, leading to a year-on-year decrease in profits.

**Entering November, the consensus on "anti-involution" in the chemical industry deepened. In addition to the recovery of the prosperity of silicone products, several sub-industries have reduced production to stabilize the market.** Recently, the caprolactam industry held an exchange meeting to discuss "anti-involution" related measures, including "participating companies reducing production by 20% and raising prices by 100 yuan per ton."

LUXI CHEMICAL's caprolactam and nylon 6 products are expected to benefit from this. It is understood that the downstream product of caprolactam is nylon 6, which is used in wool spinning, knitting, tires, engineering plastics, films, and composite materials. According to LUXI CHEMICAL's 2024 annual report, the company has a caprolactam production capacity of 700,000 tons/year and a nylon 6 production capacity of 700,000 tons/year.

Research reports from Huatai Securities and others believe that considering the growth in downstream PA6 (nylon 6) demand, while the expansion of CPL (caprolactam) has entered its final stage, "anti-involution" is expected to further assist in improving the supply-demand situation and price recovery of CPL. According to Baichuan Yingfu data, on November 7, the price of caprolactam was 8,150 yuan/ton, at a near ten-year low, and is expected to have significant price elasticity under improved supply and demand. LUXI CHEMICAL currently ranks among the top five in domestic CPL and PA6 production capacity and is expected to benefit fully. **In addition, under the "anti-involution" policy background, LUXI CHEMICAL, as a leading domestic CPL/PA6 manufacturer, has significant integrated advantages and is expected to benefit fully.**

Currently, LUXI CHEMICAL is continuously building an integrated industrial base for new chemical materials and fine chemicals, leveraging product synergy benefits. In addition to the gradual release of new project capacities such as caprolactam, nylon 6, and silicone, several ongoing projects of the company are progressing steadily. According to the company's semi-annual report, as of mid-year, the engineering progress of the 8#9# hydrogen peroxide project reached 100%, the polycarbonate project reached 99%, and the safety rectification project of the hydrogen peroxide unit reached 98%. The company's long-term development space is significant, and the synergy of the industrial chain is expected to be further enhanced.

**(The individual stocks mentioned in the text are for example analysis only and do not constitute investment advice.)**

### 相關股票

- [Dongyue (300821.CN)](https://longbridge.com/zh-HK/quote/300821.CN.md)
- [LUXI CHEMICAL (000830.CN)](https://longbridge.com/zh-HK/quote/000830.CN.md)
- [Hoshine Silicon (603260.CN)](https://longbridge.com/zh-HK/quote/603260.CN.md)

## 相關資訊與研究

- [Hoshine Silicon Industry's shareholder to unload stake](https://longbridge.com/zh-HK/news/265123984.md)
- [Hoshine Silicon Industry sees 2025 net loss at 2.8-3.3 billion yuan](https://longbridge.com/zh-HK/news/274300448.md)
- [BOE Technology plans A-share buyback](https://longbridge.com/zh-HK/news/281200601.md)
- [Rubio says Venezuela will ultimately need transition phase, free and fair elections](https://longbridge.com/zh-HK/news/281280690.md)
- [PetroChina Renews Financial Deal With Related Company](https://longbridge.com/zh-HK/news/280998322.md)