For the Quarter Ending March 2025
North America
During the first quarter of 2025, the North American Dimethylcyclosiloxane (DMC) market witnessed a price decline of 6% compared to the previous quarter, shaped by a mix of fluctuating demand and evolving supply conditions. In January, prices dipped amid moderate demand, steady inventories, and winter-related production disruptions. While the personal care and cosmetics sectors showed resilience, broader consumer spending remained soft, and transportation delays added pressure to the supply chain.
February saw a brief rebound in prices, supported by restocking activities and strong demand from the personal care industry. Rising feedstock costs and expectations of tariffs prompted preemptive buying, tightening the supply-demand balance. However, sluggish performance in the automotive and industrial sectors tempered broader momentum.
By March, prices declined again due to easing production costs, steady domestic output, and high inventory levels. Despite consistent downstream activity, particularly in automotive and personal care, weak construction demand and cautious procurement strategies led sellers to adopt more competitive pricing. The overall market tone softened, reinforcing the quarterly price drop.
APAC
During the first quarter of 2025, the APAC Dimethylcyclosiloxane (DMC) market witnessed a price decline of 2.5% compared to the previous quarter, influenced by fluctuating supply-demand dynamics across the region. In January, prices fell due to ample inventories, steady production rates, and weakened demand from sectors like personal care and cosmetics. Despite port congestion affecting some key trade hubs, stable feedstock availability helped maintain smooth manufacturing operations, though overall consumption remained subdued amid economic uncertainty and cautious industrial activity. February brought a temporary price rebound as demand strengthened from industries such as automotive, construction, and personal care. Tighter supply conditions, rising raw material costs, and continued logistical disruptions contributed to the upward price movement. Market participants responded with strategic procurement and tighter inventory management, navigating the more competitive environment. By March, prices dipped again as high production levels led to inventory buildup and an oversupplied market. Combined with a drop in feedstock costs, suppliers adopted more competitive pricing strategies despite steady demand from core downstream industries, reinforcing the overall downward trend.
Europe
During the first quarter of 2025, the European Dimethylcyclosiloxane (DMC) market witnessed a 7% decline in prices compared to the previous quarter, influenced by fluctuating demand, cost pressures, and evolving supply dynamics. In January, prices fell slightly due to modest demand and logistical constraints, including rising energy costs and limited raw material availability. Key sectors like beauty, construction, and automotive remained subdued, putting downward pressure on market sentiment. In February, DMC prices increased, driven by global feedstock cost increases and local supply disruptions, including port congestion and strikes. Despite weak demand from the automotive and construction sectors, stable offtake from personal care and cosmetics helped support the price uptick. However, March saw a decline in DMC prices due to oversupply, reduced upstream costs, and cautious procurement across the region. Although supply remained steady with no major disruptions, softening demand and competitive market conditions led suppliers to adjust prices downward. Overall, Q1 was marked by volatility, oversupply, and weak economic sentiment.
For the Quarter Ending December 2024
North America
During the fourth quarter of 2024, the North American Dimethylcyclosiloxane (DMC) market faced significant downward pressure on prices due to multiple interrelated factors. Weak downstream demand, particularly from the silicone industry, was a primary driver, with sectors such as automotive and construction struggling under the weight of high interest rates and reduced consumer spending. Stable production levels in the domestic market contributed to an oversupply, further straining market dynamics.
Additionally, feedstock costs, especially for dimethyldichlorosilane (DMDC), eased as raw material prices softened, and supply chains improved, reducing overall production expenses. The downward trend accelerated as freight rates stabilized and supply flows remained uninterrupted.
Globally, challenges such as subdued demand for silicone rubber in South Korea and a contracting manufacturing sector in China compounded the situation, with manufacturers facing increased production costs and declining export demand. In India, weak manufacturing activity in key sectors like automotive and construction also hindered global demand. These combined factors underscored a bearish outlook for the DMC market, reflecting broader economic uncertainties.
APAC
During the initial months of the fourth quarter of 2024, the Dimethylcyclosiloxane (DMC) market in Asia-Pacific experienced significant price declines, followed by a period of stability in December. The early decline was driven by stable yet subdued downstream demand and easing feedstock costs, particularly for dimethyldichlorosilane (DMDC), as raw material prices softened, and supply chains improved. The silicone market, a key consumer of DMC, maintained consistent demand from sectors like automotive and construction, though these industries were constrained by high interest rates and reduced consumer spending. Oversupply in the domestic market, due to steady production levels, added further pressure on prices. The downward trend was amplified by reduced production costs, smooth supply flow, and stable freight charges. By December, the market showed resilience with balanced supply levels and sufficient inventories, despite subdued performance in the silicone rubber sector and weaker export demand across Asia. Stable domestic consumption and strong demand from the U.S. silicone rubber market provided some support, resulting in a steadying of prices and a cautiously optimistic market outlook.
Europe
The European Dimethylcyclosiloxane (DMC) market witnessed a sharp decline in prices during the fourth quarter of 2024, driven by a combination of weak downstream demand and easing feedstock costs. In Germany, the silicone market, a key consumer of DMC, faced sluggish demand from industries like automotive and construction, which were adversely affected by high interest rates and reduced consumer spending. Oversupply in the domestic market, supported by stable production levels despite subdued demand, exerted further downward pressure on prices. Feedstock costs, particularly for dimethyldichlorosilane (DMDC), softened as raw material prices declined, and supply chains improved, reducing production expenses. By November, the downturn accelerated due to reduced demand from downstream industries, notably Silicone Elastomers, as well as stable freight charges and uninterrupted supply flows. In December, the DMC market showed signs of stagnation, as stable domestic demand was offset by weaker export offtake, particularly from the Asian Silicone Rubber sector. Global challenges, such as manufacturing slowdowns in South Korea and China, and subdued demand in India, further underscored the bearish market trajectory for DMC.
For the Quarter Ending September 2024
North America
In Q3 2024, the Dimethylcyclosiloxane (DMC) market in North America faced a notable decline in prices, particularly in the USA. Several factors contributed to this downward trend, most prominently weak demand from downstream industries such as paints and coatings, which significantly affected pricing. Additionally, reduced feedstock costs, particularly for Methanol, lowered production expenses, exerting further downward pressure on DMC prices.
The market also dealt with supply chain disruptions that complicated timely deliveries, complicating the pricing environment. In the U.S., this negative pricing trend was evident throughout the quarter, as seasonal dynamics and overall market conditions correlated with the price decrease. The quarter-on-quarter change of -1.71% highlighted the persistent decline, and prices were considerably lower than in the same quarter last year.
The quarter concluded with DMC priced at USD 3,050/MT CPT USGC, marking a challenging period for the market. Overall, these conditions reflected ongoing pressures that contributed to a sustained downward trajectory in DMC pricing across the North American region.
APAC
In Q3 2024, the Dimethylcyclosiloxane (DMC) market in the APAC region experienced a notable price increase, primarily driven by developments in China. Prices rose steadily throughout the quarter, influenced by strong demand from downstream industries, such as automotive and electronics, coupled with supply constraints and rising production costs. Disruptions, including plant shutdowns and logistical challenges, further exacerbated the supply tightness, contributing to the upward pricing pressure. China, in particular, saw the most significant price fluctuations, reflecting the overall trend across the region, with synchronized pricing movements among countries such as Japan and South Korea. Despite some seasonal variations, the market maintained a positive pricing environment, recording an 8% increase compared to the same quarter last year, while prices remained stable from the previous quarter. By the quarter's end, DMC was priced at USD 1,950/MT FOB Shanghai, indicating a considerable rise from earlier in the quarter. This performance underscores the upward momentum within the DMC market in the APAC region, driven by strong demand, ongoing supply-side challenges, and the overall positive market sentiment.
Europe
In Q3 2024, Dimethylcyclosiloxane (DMC) prices in the European region experienced a notable decline, largely due to decreased demand from essential downstream sectors, including silicone rubber, adhesives, and coatings. The market faced significant challenges as key industries like automotive, construction, and aerospace showed lackluster performance, resulting in subdued overall market conditions. Additionally, global economic uncertainties and falling industrial activity further impacted the pricing environment for DMC. Germany reported the most substantial price changes, with a -1.04% decrease from the previous quarter and an even more pronounced -8% drop between the first and second halves of the quarter. By the end of the quarter, DMC prices in Germany settled at USD 3,240/MT FD Hamburg, reflecting the prevailing negative pricing trend. Despite moderate supply levels and some demand from specific downstream sectors, the overall market sentiment remained bearish, with challenging conditions contributing to the downward trajectory in prices. This combination of factors underscores the difficulties faced in the DMC market across Europe during this period.
For the Quarter Ending June 2024
North America
The Dimethylcyclosiloxane (DMC) market in North America experienced a notable upward price trend during the second half of Q2. However, the rise in the production rate among the enterprises remains the key reason that declined the prices during April 2024 amid supply exceeding the demand.
The quarter saw significant supply constraints and an increase in demand across various industries, which collectively exerted upward pressure on DMC prices during May 2024. The manufacturing sector exhibited robust performance indicators, bolstered by favorable economic conditions and a resurgence in new orders, particularly from the automotive and silicone rubber sectors. The rise in U.S. auto sales and steady demand from the beauty and personal care industries further amplified the positive market sentiment during June 2024.
Focusing on the USA, the market dynamics were particularly bullish. This quarter witnessed an impressive 7% price increase from the previous quarter in 2024, underpinned by supply limitations and heightened demand fundamentals. Despite certain logistical challenges, including the aftermath of the Baltimore bridge collapse, and some manufacturing units implementing production cuts to manage inventories, the market continued to remain bullish.
APAC
In Q2 2024, Dimethylcyclosiloxane (DMC) pricing in the APAC region experienced significant fluctuations from bearishness toward bullishness. Previously, a sharp rise in supply during April-May 2024 was caused by the high domestic monomer running rates, ongoing release of new capacity, and some addition of a new capacity. Domestic silicone DMC production in China increased 11.38% from April to 207,500 MT in May. The overall output from January to May of 2024 was 959,400 MT, a 14.88% year-over-year increase. May's output increased amidst production from freshly commissioned capacity and domestic enterprises did not shut down or perform maintenance throughout the month which certainly outpaced the demand. However, the quarter was marked by a notable increase in purchasing activities during June 2024, driven by high demand from downstream enterprises, particularly in the automotive and silicone rubber sectors. Additionally, increased importing petrochemical charges and elevated trading costs further contributed to the rising price trend due to regional suppliers' expectations of price hikes. The correlation between seasonally driven demand spikes and the uptick in prices was evident, reflecting a robust recovery in downstream markets. Compared to the same quarter last year, the overall trend showcased a marked improvement in market conditions.
Europe
In Q2 2024, the Dimethylcyclosiloxane (DMC) market in Europe experienced a significant upward trajectory in pricing. Even with reduced production rates during the turnaround season, the German DMC players' supply still exceeds their demand amidst a weak buying attitude on the market which declined the price trend during April 2024.
However, increased upstream costs and power surcharges contributed to elevated production expenses, exerting upward pressure on DMC prices during May 2024. The strengthening of purchasing fundamentals, with enterprises actively inquiring and increasing spot purchases, further buoyed the market. Additionally, long transit times and rising freight rates resulted in logistical challenges, tightening supply and further propelling prices upward. Focusing exclusively on Germany, which witnessed the most pronounced price fluctuations, the DMC market exhibited a robust bullish trend. The interplay of seasonality and heightened purchasing activities, combined with constrained inventories, led to an 11% price increase between the first and second halves of the quarter. Market dynamics were further influenced by the early arrival of the Ocean peak season and disruptions in the Red Sea, exacerbating congestion and equipment shortages.
