For the Quarter Ending September 2025
North America
• In United States, the Precipitated Silica Price Index rose quarter-over-quarter in Q3 2025, driven by increasing production costs.
• Precipitated Silica production costs increased due to a 3.0% year-over-year CPI rise in September 2025.
• Producer Price Index increased 2.6% year-over-year in August 2025, indicating higher input costs.
• Industrial electricity costs strengthened in August 2025, pressuring Precipitated Silica production expenses upward.
• Precipitated Silica demand outlook was mixed, with slow industrial production growth of 0.1% year-over-year in September 2025.
• Robust retail sales, up 5.42% year-over-year in September 2025, supported Precipitated Silica demand in consumer sectors.
• A low unemployment rate of 4.3% in September 2025 sustained consumer purchasing power, aiding Precipitated Silica demand.
• Weakening consumer confidence, at 94.2 in September 2025, suggested potential slowdown in discretionary Precipitated Silica applications.
Why did the price of Precipitated Silica change in September 2025 in North America?
• Precipitated Silica production costs rose due to a 3.0% CPI increase in September 2025, reflecting inflationary pressures.
• Industrial electricity costs strengthened in August 2025, directly increasing Precipitated Silica manufacturing expenses.
• A 2.6% PPI increase in August 2025 indicated higher input costs for Precipitated Silica producers.
APAC
• In China, the Precipitated Silica Price Index fell quarter-over-quarter in Q3 2025, influenced by declining producer prices and feedstock costs.
• Precipitated Silica production costs eased in Q3 2025 as caustic soda and sodium silicate feedstock prices declined.
• Demand for Precipitated Silica was supported by robust automotive sales and growing tire demand in Q3 2025.
• The Manufacturing Index contracted in September 2025, indicating reduced industrial output and impacting raw material demand.
• Industrial production expanded by 6.5% in September 2025, bolstering Precipitated Silica demand across industrial applications.
• Retail sales increased by 3.0% in September 2025, indirectly boosting Precipitated Silica demand in consumer-facing products.
• Weakening consumer purchasing power, with CPI decreasing by 0.3% in September 2025, suggests continued price pressure.
• Domestic Precipitated Silica producers are expanding capacity in 2025, potentially influencing future supply and price stability.
Why did the price of Precipitated Silica change in September 2025 in APAC?
• Producer prices declined by 2.3% in September 2025, reflecting weak industrial demand and pricing power.
• Caustic soda and sodium silicate feedstock costs weakened in Q3 2025, reducing manufacturing input expenses.
• The Manufacturing Index contracted in September 2025, signaling reduced industrial activity and demand for materials.
Europe
• In Germany, the Precipitated Silica Price Index rose quarter-over-quarter in Q3 2025, influenced by rising production costs.
• Production costs rose from surging European sodium silicate freight rates and high German electricity prices in Q3 2025.
• CPI rose 2.4% year-over-year in September 2025, indicating increasing raw material and energy costs.
• German industrial production decreased 1.0% year-over-year in September 2025, dampening industrial demand.
• The Manufacturing Index indicated a contracting trend in Q3 2025, signaling reduced demand for industrial inputs.
• Retail sales in Germany rose 0.2% year-over-year in September 2025, offering mild support for consumer demand.
• Unemployment rate remained stable at 6.3% in September 2025, not boosting consumer purchasing power.
• European caustic soda operating rates were at all-time lows in July 2025, affecting a key raw material supply chain.
• Precipitated Silica price forecast indicates continued upward pressure from elevated input costs.
Why did the price of Precipitated Silica change in September 2025 in Europe?
• Production costs for Precipitated Silica were lifted by surging European sodium silicate freight rates in Q3 2025.
• German electricity prices increased significantly in July and averaged high in September 2025, raising manufacturing expenses.
• Contracting manufacturing activity and declining industrial production in Q3 2025 exerted downward pressure on demand.
