Silicone Oil Prices Demonstrate a Bearish Trend in the Europe and Asian Markets Throughout December
Silicone Oil Prices Demonstrate a Bearish Trend in the Europe and Asian Markets Throughout December

Silicone Oil Prices Demonstrate a Bearish Trend in the Europe and Asian Markets Throughout December

  • 12-Jan-2023 3:38 PM
  • Journalist: Peter Schmidt

Since the beginning of December, Silicone Oil prices have witnessed a declining trend in the Asia and European markets supported by ample inventories. Tumbling energy prices, bleak demand, and high inflation have weighed down the prices of Silicone Oil.

In China, Silicone Oil prices have declined by 6.0%, supported by collapsing demand from the end-user automotive, cosmetics, and other competitive industries while sufficient material availability forces manufacturers to revise negative price quotations. At the same time, consumption of Silicone Oil from the overseas market has also remained on the weak side amid soft buying sentiments. Despite this, feedstock Silicon metal prices raised, but it did not offer much cost pressure on the downstream Silicone Oil prices. In addition, the congestion has eased at key ports, and overall vessel utilization was low amid weak demand. Also, the freight charges across Asia and international markets have eased, supporting the decline in the price realizations of Silicone Oil in the Chinese market. According to the National Bureau for Statistics (NBS), manufacturing activity has witnessed a sharp decline, and Purchasing Manufacturing Index (PMI) recorded in December 2022 dropped from 48 to 47, compared with the previous month. Thus, in conclusion, Silicone Oil FOB Shanghai prices were offered at USD 3305/MT during December.

Similarly, Silicone Oil prices have declined by 7.8% in the European market. The price decline was attributed to cheap imports from the Asian market. In addition, Energy (natural gas) prices have gained stability in the region, resulting in stable domestic production costs. According to Kpler, by the end of December 2022, Europe’s natural gas inventories were 32 Billion Cubic Meters (Bcm) higher than at the same time in 2021. On the demand side, procurement from the downstream automotive, cosmetics, and other industries remained sluggish amid seasonal dullness and the slow growth of key industries. Further, cargo rates and volumes have continued to be soft; however, the rate of contraction in transportation prices reduced with the onset of the first quarter of 2023. As a result, in Germany, Silicone Oil FOB Hamburg prices were assessed at USD 3995/MT during the same time frame.

According to ChemAnalyst, “prices are likely to follow the downward trajectory in the Asia and European region due to bearish demand and lower production cost in the regional markets. Meanwhile, in Europe, the drop in natural gas costs along with plummeting freight rates across the Asian and European markets is likely to cause a descending shift in the Silicone oil prices in January 2023”. 

Related News

PennWhite Limited Selects Krahn UK Limited as the UK Distributor for Silicone Oils
  • 15-May-2024 6:47 PM
  • Journalist: Nina Jiang
Rise in Silicone Oil prices in Europe and US Hints a Sign of Recovery in Lubricants Sector
  • 02-Apr-2024 3:16 PM
  • Journalist: Sasha Fernandes
German Silicone Oil Prices Recover in February 2024 as Business Confidence Improves
  • 18-Mar-2024 3:38 PM
  • Journalist: Jacob Kutchner
Silicone Oil prices turned bullish in the US, Stable in Europe in January 2024
  • 15-Feb-2024 2:30 PM
  • Journalist: Gabreilla Figueroa