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Why did silicone sealant increase in price by the end of 2025?

Why did silicone sealant increase in price by the end of 2025?

2026-02-28

Sharp Increase in Raw Material Prices
The main raw material of silicone sealant is organosilicon DMC (dimethylcyclosiloxane mixture), which accounts for 60%-80% of production costs. The rise in organosilicon raw material prices in the fourth quarter of 2025 directly led to a significant increase in costs for silicone sealant companies. Taking industry leader Guangzhou Silicone Technology as an example, fluctuations in DMC prices have a significant impact on its gross profit margin. In 2024, the company's overall gross profit margin was 19.5% (18% for construction adhesives and 32% for industrial adhesives). The cost pressure brought by rising raw material prices forced companies to raise prices in order to maintain profit margins.