For The Quarter Ending September 2022
North America
In the North American region, the market dynamics of Silicone oil followed an upward trend throughout the third quarter of 2022. High raw material Silicon metal prices have resulted in the high production cost of Silicone oil in the regional market. In addition, demand from the downstream automotive industries has remained stable to weak amid high inflation. On the other side, labor shortage, logistic constraints, and port congestion on the US Gulf coast and East coast have further worsened the supply dynamics and thus caused the limited availability of the product in the domestic market. Consequently, prices of Silicone oil in the USA (SC-85%) 100 CST CFR Houston were assessed at USD 4615/MT during September.
Asia- Pacific
Silicone oil prices have continued to rise in the Asia- Pacific region throughout the third quarter of 2022. Silicone oil prices increased due to the high-cost pressure while demand from the downstream automotive and allied industries has remained stable. On the other hand, the high raw material Silicon metal has another other reason for the price increase. In China, the market faced stoppages due to a resurgence in covid cases, which not only hampered production and trading activities but also obstructed supply chain dynamics, resulting in the limited availability of the material in the regional market. Therefore, after the conclusion of Q3, Silicone oil prices in China (SC-85%) 100 CST FOB China were assessed at USD 3715/MT.
Europe
Prices of Silicone oil have continued their bullish rally in the European region during the third quarter of 2022, supported by the high cost of raw material Silicon metal cost. The domestic cost of production remained high amid soaring energy and operating costs, resulting in weak output. Although, the speculation of recession across Europe has dampened the demand from the downstream automotive industries. According to Eurostat, inflation in Europe has increased from 7.1% to 10.1% during September. On the other side, the supply chain has been disrupted amid port congestion, vessel bunching, and labor strike, which halted the supply flow of Silicone oil and limited the material available in the market. Thus, prices of Silicone oil in Germany SC-85%) 100 CST FOB Hamburg were assessed at USD 4665/MT during September.
