Dow Chemical Raises Prices Again by 5-10%

Dow Chemical is once again initiating a new round of price increases, with hikes ranging from 5% to 10%. In early January 2026, Dow's Silicones business formally issued a price adjustment letter to its customers and partners in Greater China, announcing that effective January 26, 2026, the selling prices of its products related to high-performance building applications will be increased. The specific increase will vary depending on different product lines and regional market conditions. The core reason for this price adjustment lies in the continuous rise of comprehensive costs, including higher upstream raw material prices, increased environmental compliance and energy consumption costs, and significant surges in logistics and transportation fees. Despite the company's ongoing efforts in cost reduction, efficiency improvement, and operational optimization in recent years, the cumulative impact of these multiple cost pressures makes it difficult to fully absorb the overall cost structure, ultimately driving prices upward.

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From an industry perspective, this round of price increases is not an isolated event. As early as November 25, 2025, Dow Chemical announced that its Consumer Solutions business's silicone business would implement a 10%-20% price increase on several core products starting December 10, 2025, reflecting the improving supply and demand dynamics in the global silicone market. At the same time, partial plant production cuts within the industry and the gradual withdrawal of outdated overseas capacity from the market have, to some extent, alleviated supply pressure and created more favorable market space and development opportunities for domestic silicone companies.