In the US, confrontational silicone oil prices remained relatively stable at the end of November 2025 and early December 2025, following the previous year's volatility attributable to a range of factors, including shifts in feedstock, freight issues, and inconsistent downstream demand. With the improved management of supply chains and increased alignment between supply and demand, there was less fluctuation in price during this same period than before it. There was sufficient availability of the feedstocks necessary to produce silicone oils, and there were no significant interruptions to production due to plant closures or supply chain disruptions. Additionally, distributors had adequate inventories during the holiday season to meet consumer needs. Demand from manufacturers has remained steady but cautious, thereby preventing price spikes. Looking ahead, silicon oil pricing is anticipated to remain flat, with the possibility of some mild seasonal fluctuations during January and February 2025.
The price of silicone oils in the United States has been very stable throughout November and continuing into the first week of December 2025, as the silicone oil market is stabilizing into a regular pattern now, following several months of sporadic volatility due to feedstock variability, shipping problem areas, and changing downstream Purchasing needs & interests of customers. Prior to November, Silicone oil prices were experiencing monthly price fluctuations due to changes in the availability of raw materials caused by supply chain interruption, changes in operating capacity of manufacturers, and fluctuations in consumption trends. The Silicone oil market has seen reductions in the volatility of prices as both suppliers and manufacturers have made efforts to better manage their supply chain processes and align supply and demand fundamentals more closely before the transition into December.
The supply side of the silicone oil market remains stable due to the continued availability of key feedstocks for US producers, including dimethicone intermediates and siloxane monomers. Supply disruptions caused by shipping delays, specifically related to weather issues in Southeast Asia, as well as ongoing changes to how freight moves across the Pacific Ocean, were not an issue with respect to supplying silicone oil into the US. There is enough Silicone oil on hand in the US at both level 3 and level 4 distributors to adequately supply when needed during this holiday season. In addition, there have been no major plant outages or logistics issues that have impacted Silicone oil prices so far in this quarter.
Silicone oil demand from end markets continues to be consistently stable for Auto and Industrial Lubricants but has not increased dramatically as customers remain cautious in their purchasing decisions. The other industrial sector, such as Release Agents and Speciality Coatings, continued to display moderate levels of activity, but the amount of stocking activity was far less aggressive than previously experienced earlier this year. Overall, these steady demand levels prevented any major spikes in product supply that would have resulted in an increase in product prices.
The near-term outlook indicates that there will continue to be stability in prices; however, there is an upward tendency. The market will most likely remain stable during the month of December unless there are unexpected increases in feedstocks. There will probably be some mild softness in January and February, which is a typical occurrence due to seasonal demand fluctuations; however, any falloff will be mitigated by higher production costs and stable demand from industrial sectors. In March and April, renewed activity in manufacturing combined with potential tightening of global siloxane supplies may exert upward pressure on Silicone oil prices.
