In October 2025, the Liquid Silicone Rubber (LSR) market witnessed declines in prices in all major regions on limited downstream demand, continuing oversupply in the silicones sector, and moderate stability in feedstocks. The industry experienced weaker demand related to end-use, affecting overall product sentiment. Producers were focused on maintaining manufacturing efficiencies, optimizing inventories, and protecting margins in a tight price range for LSR grades.
Across the Asia-Pacific region, performance was mixed. For the period of April–September 2025, Shin-Etsu’s silicones business, encompassing its product portfolio, posted net sales of ¥220.6 billion, reflecting a 2% decrease year-over-year, and operating income decreased 10% as well. Demand for LSR has softened based on subdued demand recovery and lower price realizations. Silicone exports from China went down by 2.47% month-on-month to 46,895.1 MT, emphasizing average export activity for LSR intermediates. However, South Korea saw imports rise by 21.27% month-on-month to 12,200.8 MT, which likely suggests that manufacturers were restocking LSR feedstocks. Similarly, trade trends for Japan and Indonesia were mixed, as Japan's imports decreased while Indonesia gained marginally, creating an unsteady regional balance for the LSR market.
The lower-end automotive industry put pressure on LSR prices with Japanese vehicle sales fell 7.71% month-on-month in October 2025, and South Korean new car sales fell 17.7%, reducing LSR usage in seals and gaskets and components. Although India's passenger car sales increased year-on-year by 17.23% due to festive demand and GST cuts, the Indian positive momentum could not counter the regional decline.
Elkem mentioned that its EBITDA for Q3 2025 was NOK 829 million in contrast to NOK 1,241 million for the same quarter in the prior year as low LSR prices and continued oversupply globally continued to weigh on profitability. Cost efficiency did improve, however, the silicones segment continued to face structural headwinds which limited a sustained rebound in prices.
In the United States, Dow Chemical’s Consumer Solutions business experienced decreased net sales year-on-year despite improved consumption of siloxanes and downstream materials. Yet, this was not sufficient to offset the negative impact of lower pricing. The global LSR market remained weak over October 2025, with oversupply, weaker demand.
According to ChemAnalyst, the LSR price is expected to show an increase in the near term. The expectation for the price changes is primarily based upon an expected increase in demand from the downstream market in response to a generally positive outlook from the semiconductor industry. It is expected that the resulting depletion of inventory levels will lead to bidding activity among market participants that will subsequently follow with higher LSR prices in the short-term.
