For the Quarter Ending September 2025
North America
• In the USA, the Silicone Oil Price Index fell by 0.07% quarter-over-quarter, amid logistics pressure.
• The average Silicone Oil price for the quarter was approximately USD 2268.33/MT across reported grades.
• Silicone Oil Spot Price softened as freight eased and increased Asian imports pressured markets domestically.
• Silicone Oil Price Forecast expects modest fluctuations ahead driven by seasonal demand and logistics volatility.
• Silicone Oil Production Cost Trend increased after silicon metal gains, tightening margins, elevating landed costs.
• Silicone Oil Demand Outlook remains supported by EV, electronics, and personal care sectors sustaining consumption.
• Silicone Oil Price Index volatility reflected transient freight spikes, seasonal buying, and producer operating adjustments.
• Elevated imports increased inventories in August, pressuring price momentum despite production discipline from major producers.
Why did the price of Silicone Oil change in September 2025 in North America?
• Supply remained adequate with rising imports and steady domestic output, creating oversupply pressure in September.
• Silicon metal recovery and freight spikes increased production and landed costs, elevating marginal pricing pressures.
• Downstream buying softened as inventories were ample, with buyers anticipating further price stability and declines.
APAC
• In South Korea, the Silicone Oil Price Index rose by 1.98% quarter-over-quarter, driven by feedstock inflation.
• The average Silicone Oil price for the quarter was approximately USD 2230.00/MT to domestic buyers.
• Silicone Oil Spot Price rose after silicon metal spikes and freight increases pushed landed costs.
• Silicone Oil Production Cost Trend rose as silicon metal inflation increased import expenses for producers.
• Silicone Oil Price Forecast anticipates modest easing, tempered by selective restocking and ongoing feedstock volatility.
• Silicone Oil Demand Outlook remains firm, supported by EVs, electronics encapsulation, and expanding cosmetics formulations.
• Inventory builds and increased Chinese shipments pressured the Silicone Oil Price Index, curbing distributor buying.
• Producers curtailed output to protect margins while balancing export demand and managing near-term regional inventories.
Why did the price of Silicone Oil change in September 2025 in APAC?
• Silicon metal spikes raised import costs, increasing production expenses and pushing domestic silicone oil prices.
• Elevated intra-Asia freight and port disruptions increased landed costs and created timing uncertainty for imports.
• Downstream buyers adjusted purchases amid ample imports, with automotive and electronics demand remaining selective short-term.
Europe
• In Germany, the Silicone Oil Price Index rose by 1.28% quarter-over-quarter, supported by resilient demand.
• The average Silicone Oil price for the quarter was USD 3426.67/MT, reflecting input cost pressures.
• Supply tightness and logistical bottlenecks kept the Silicone Oil Spot Price elevated despite import competition.
• Silicon metal and energy cost increases drove the Silicone Oil Production Cost Trend, squeezing margins.
• Export demand and industrial resilience underpin the Silicone Oil Demand Outlook, supporting offtake across sectors.
• Inventory accumulation in August weighed on the Silicone Oil Price Index, prompting cautious restocking activity.
• Near-term Silicone Oil Price Forecast shows modest fluctuations driven by seasonal demand and logistical uncertainty.
• Producer output discipline limited volumes, balancing tightness while mitigating downward moves in the Silicone Oil Price Index.
Why did the price of Silicone Oil change in September 2025 in Europe?
• Rising silicon metal and energy inputs increased production costs, exerting upward pressure on silicone pricing.
• Stronger industrial and EV-related demand supported offtake, offsetting some downward pressure from lower crude prices.
• Port congestion, rail delays, and import competition created supply variability, influencing short-term pricing and procurement decisions.
For the Quarter Ending June 2025
North America
• The Q2 2025 average Silicone Oil Price Index was USD 2300/MT, CFR Houston in June, a 5% rise above Q1 2025 because of inflation in cost, strong downstream demand, and volatility in freight.
• Silicone Oil Price generally moved upwards during the quarter driven by increased silicon metal prices (+7–9%), strong global supply tightness, and increased shipping costs which pushed domestic offers.
• Why will the price fall in July 2025?
The Silicone Oil Price Forecast indicates a possible fall because of weakening freight charges, steady input prices, and resistance to increases from the buyers.
• Silicone Oil Demand Outlook stayed strong across EV, electronics, and personal care industries, with silicone’s functional versatility sustaining offtake growth.
• Silicone Oil Production Cost Trend rose in June amid raw material inflation (silicon metal, siloxanes) and temporary freight surges crossing USD 6,000/FEU to US West Coast.
• Imports remained constrained due to tariffs on Chinese materials, shifting procurement toward costlier South Korean/EU sources.
• Producers like Dow and Momentive managed output cautiously to avoid oversupply, tightening inventories and supporting prices.
• Despite steady demand, inventory planning and cost pass-through limits could prompt price correction in early Q3 2025.
APAC
• The Silicone Oil Price Index in China averaged USD 2165/MT , FOB Shanghai, showing a 5% incline from Q1 2025, supported by resilient demand, firm input costs, and restricted output throughout Q2.
• Silicone Oil Price rose steadily during April–June due to strong consumption from electronics, NEVs, and personal care sectors, coupled with cautious domestic production and tight global availability.
• Why did the price change in July 2025?
Silicone Oil Price Forecast for July 2025 suggests a decline, driven by cooling post-harvest demand, easing silicon metal prices, stabilized production, and slower export bookings.
• The Silicone Oil Production Cost Trend rose late in Q2 due to a sharp rebound in silicon metal and elevated energy/logistics costs, though remained relatively stable earlier in the quarter.
• The Silicone Oil Demand Outlook in Q2 stayed firm, underpinned by approx. 30% y-o-y NEV sales in June, robust personal care trends, and stable electronics and industrial applications.
• Export demand peaked in April as global buyers scrambled amid EU shortfalls, adding pressure to China’s tight inventories and raising freight timelines from ports like Ningbo and Shanghai.
• Supply remained tight due to environmental controls, limited new capacity (<500,000 tons/year), and strategic inventory management by key producers, keeping oversupply risks in check.
• The Silicone Oil Price Index closed Q2 2025 on a strong note, maintaining an upward trajectory as rising cost structures, steady demand, and restricted supply reinforced market strength.
Europe
• The Silicone Oil Price Index in Germany averaged USD 3420/MT, FOB Hamburg, marking a 3.5% increase from Q1 2025, supported by strong downstream demand, elevated input costs, and restricted supply flow across the quarter.
• Silicone Oil Price rose steadily throughout Q2 as robust consumption from automotive, electronics, and personal care sectors coincided with logistical disruptions, tightening domestic inventories.
• Silicone Oil Price Forecast for July 2025 points to a further increase, driven by ongoing port congestion, resilient EV and healthcare demand, and high energy and raw material costs sustaining upstream price pressure.
• The Silicone Oil Production Cost Trend escalated in Q2, led by rising silicon metal imports, euro volatility, and persistent energy price inflation, while regional input shortages and labor costs added further pressure.
• The Silicone Oil Demand Outlook remained firm across Q2, with steady procurement from Germany’s EV sector, medical applications, and premium personal care formulations offsetting macroeconomic softness.
• Import dependence grew due to domestic production constraints, while port congestion at Hamburg and Bremerhaven and reduced inland transport efficiency delayed restocking and stretched delivery cycles.
• Export allocations were deprioritized due to tight local availability, pushing German producers to manage output and inventory closely to meet critical domestic demand segments.
• The Silicone Oil Price Index closed Q2 2025 on a firm upward trajectory, reflecting a structurally tight supply chain, resilient industrial consumption, and cost-driven pricing environment across European markets.
For the Quarter Ending March 2025
North America
Silicone oil prices in North America showed an upward trend in Q1 2025, driven by strong demand from key sectors such as automotive, aerospace, electronics, and personal care. The price increase was influenced by persistent supply-side challenges, including rising raw material costs, especially due to fluctuations in crude oil prices. Crude oil price volatility had a direct impact on the cost of key raw materials for silicone oil production, such as siloxanes and energy-intensive production processes. Logistical disruptions, including port congestion on the U.S. West Coast and transportation delays, further compounded supply chain issues, raising shipping and storage costs.
The automotive sector, a major consumer of silicone oil, also played a significant role in driving prices upward. With the continued growth of electric vehicle (EV) production, the demand for silicone oil surged due to its use in electric motors, batteries, seals, and other vehicle components. Despite some concerns around the impact of new tariffs and cost pressures on steel and aluminum, the robust growth in EVs and the broader automotive sector supported sustained silicone oil demand.
Overall, silicone oil prices in Q1 2025 increased by 1.4% compared to Q4 2024, reflecting resilience in key demand sectors. However, prices were 12% lower compared to Q1 2024, primarily due to reduced demand in construction and electronics, as well as inventory adjustments by downstream users. By the end of Q1 2025, silicone oil prices were recorded at USD 2220/MT, CFR Houston.
APAC
Silicone oil prices in the APAC region followed a consistent upward trend throughout Q1 2025, supported by rising raw material costs, constrained supply, and strong demand from key industries. In January, demand picked up across automotive, construction, and electronics sectors, especially with growth in EV production and infrastructure projects in China, while production costs rose due to bottlenecks and expensive silicone monomers. February saw prices rise further as environmental regulations tightened, crude oil and silicon metal prices increased, and post-holiday manufacturing rebounded. Port congestion at major hubs like Shanghai and Yantian delayed shipments, tightening inventory and driving prices higher. By March, the market witnessed sustained momentum amid a broader recovery in industrial activity and continued port congestion at Shanghai-Ningbo and Qingdao. Strong demand from downstream sectors, such as electronics and personal care, along with government support for new energy and infrastructure projects, further lifted consumption. Rising input costs from methanol and silicon metal, plant turnarounds, and proactive restocking kept supply tight. As a result, silicone oil prices in China climbed steadily, closing Q1 2025 at USD 2100/MT, FOB Shanghai. Overall, silicone oil prices in APAC increased by 2% compared to Q4 2024, but were 11% lower compared to Q1 2024, reflecting the ongoing demand pressures and supply chain disruptions.
Europe
Silicone oil prices in Europe showed a steady upward trajectory throughout Q1 2025, driven by a combination of supply constraints, rising production costs, and stable demand across key industrial sectors. The market faced significant logistical challenges, particularly due to congestion at major European ports such as Hamburg and Rotterdam, where labor strikes and high yard occupancy caused delays in both raw material imports and the export of finished goods. These disruptions strained supply chains, pushing up transportation costs and limiting product availability. Moreover, the rising prices of crude oil, which averaged USD 80 per barrel in January, led to increased production costs, as raw material prices also surged. Demand from sectors like automotive, electronics, machinery, and personal care remained stable, contributing to a firm buying sentiment despite the economic caution in the region. The automotive sector, while facing challenges from export tariffs and weak EV sales, continued to drive demand for silicone oil in various applications such as lubricants and sealants. By the end of Q1 2025, silicone oil prices in Europe were recorded at USD 3314/MT, FOB Hamburg. Overall, silicone oil prices in Europe decreased by 3% compared to Q4 2024, and also 1% lower compared to Q1 2024, reflecting the ongoing demand pressures and supply chain disruptions.
For the Quarter Ending December 2024
North America
The silicone oil market in North America experienced a consistent decline in prices throughout Q4 2024, driven by evolving demand and supply dynamics. The quarter began with heightened prices in October, influenced by robust demand from the automotive, electronics, and industrial sectors. Silicone oil's role as a lubricant in the automotive sector remained significant, as increased vehicle production supported its consumption in manufacturing and maintenance. However, supply chain disruptions, including port congestion and transportation delays, coupled with supply chain disruptions caused by Hurricane Helene, added volatility to the market early in the quarter.
In November, the market shifted as increased production capacity, both domestically and globally, led to oversupply, easing price pressures. Seasonal slowdowns in construction and agriculture, coupled with cautious inventory management by downstream industries, further weakened demand. Manufacturing activity showed moderate recovery, but economic uncertainties limited the overall market expansion.
December continued the declining trend, marked by subdued demand across sectors. Inventory adjustments and stable raw material costs allowed producers to lower prices. Despite steady growth in the automotive sector, where silicone oil is essential for improving performance and durability, overall consumption contracted due to seasonality and cautious purchasing behavior.
This declining trend reflects the market's adjustment to supply stabilization and softer demand dynamics. However, in comparison to the previous quarter, there was an incline of 2%.
APAC
Silicone oil prices in the APAC region, particularly China, experienced an overall decline during Q4 2024, influenced by weakening demand and improved supply dynamics. October began with a price surge, driven by strong demand from key industries such as automotive, electronics, and semiconductors. The automotive sector showed significant recovery in production and sales, boosting the consumption of silicone oil in applications like lubrication and sealing. However, supply-side constraints, including plant shutdowns and port congestion, limited availability and contributed to initial market volatility.
In November, prices began to soften as increased production capacity led to an oversupply in the market. Declining input costs for raw materials and energy further supported price reductions. Manufacturing activity saw slower growth, and weaker domestic demand contributed to subdued market conditions despite steady demand from industrial sectors.
By December, the market saw a further decline in prices, primarily due to the pre-holiday slowdown and inventory adjustments across industries. Improved supply chain conditions and heightened competition among producers exerted additional downward pressure. Although the EV sector demonstrated robust growth, economic uncertainties and cautious purchasing behavior moderated overall demand, leading to a consistent quarterly decline. The price change from the previous quarter in 2024 remained unchanged, indicating a consistent pricing trend.
Europe
The European silicone oil market experienced a notable decline in prices throughout Q4 2024, driven by a combination of easing demand, improved supply chain conditions, and macroeconomic factors. October saw a brief surge in silicone oil prices in Germany due to robust demand from the automotive, electronics, and semiconductor sectors. The automotive industry, a key consumer of silicone oil for lubricants and sealants, showed strong recovery, with car production rising significantly. Supply chain disruptions, including port congestion at Hamburg and labor shortages, contributed to initial price instability.
However, by November, increased production capacity and stabilized raw material costs resulted in an oversupply, initiating a downward price trend. Seasonal slowdowns in key sectors like construction, personal care, and automotive further reduced demand. Inventory adjustments by downstream industries compounded the decline in consumption, and improved port operations alleviated prior logistical challenges.
December reinforced the downward trend as subdued economic activity, weak manufacturing performance, and reduced demand from sectors like personal care and automotive drove prices lower. Despite growing hybrid vehicle sales, demand for silicone oil lubricants softened due to shifting automotive technologies and economic uncertainties. The price change of 1% from the previous quarter in 2024 indicated a consistently declining pricing trend.
