Why is China's silicone capacity dominance not translating into pricing power or high-end market share?

Why is China's silicone capacity dominance not translating into pricing power or high-end market share?
China now accounts for nearly 80% of global silicone DMC capacity, yet over 70% of high-end silicone products are still imported. The September 2026 price rally—DMC up to 14,300 yuan/ton with producers maintaining 50% output cuts—looks like a victory against oversupply, but it rests on fragile industry self-discipline. Downstream buyers are resisting high prices, purchasing only for immediate needs. The real issue is structural: Chinese producers compete on volume and price, not on specialty grades or technical innovation. New food-contact standards (GB 4806.16-2025) are forcing upgrades from precipitated to fumed and liquid silicone, but domestic R&D lags. Until companies shift focus from price speculation to product development, China's scale advantage will not translate into market influence or premium pricing.