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.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American region witnessed a significant upward trend in Silicone Oil prices, particularly in the USA, which experienced the most substantial price changes. Various factors influenced these market dynamics. The recovery of the automotive industry, driven by increased demand for high-end vehicles, coupled with growth in the electronics and semiconductor sectors, heightened the need for Silicone Oil. Supply constraints arose from unexpected plant shutdowns and technical issues, while rising costs of raw materials further pushed production expenses up.
The average crude oil price further contributed to rising production costs. Supply constraints emerged due to port congestion. Throughout Q3, port congestion impacted the silicone oil market, with manageable delays in July giving way to worsening conditions in August due to an IT outage and ongoing issues in Asia. By September, an ILA union strike caused significant delays at key U.S. ports, intensifying supply constraints and contributing to rising prices.
In comparison to the previous quarter, there was a slight decline of -1%, reflecting the current market conditions. The quarter ended with Silicone Oil priced at USD 2185/MT in the USA. This consistent increase in pricing indicates a positive pricing environment, driven by robust demand and constrained supply.
APAC
The Q3 2024 pricing trend for silicone oil in the APAC region exhibited conflicting patterns. In the first half of Q3, prices in China rose significantly due to a robust recovery in the automotive sector, particularly in electric vehicle production, which increased demand for silicone oil essential for battery components and various automotive parts. Heightened activity in the construction sector also boosted the need for silicone oil in applications like sealants and adhesives. Additionally, downstream industries replenished inventories after a period of destocking, further contributing to the overall demand. However, port congestion exacerbated by Typhoon Gaemi and an IT outage caused significant transport delays, disrupting supply chains. In the second half of Q3, silicone oil prices in China declined due to a seasonal slowdown in demand across downstream industries, especially in the automotive sector. This decline was further influenced by broader market trends, including significant drops in U.S. crude and Brent crude prices. Improved plant efficiencies led to a market surplus, applying additional downward pressure on prices. Despite a 12% increase in automobile production driven by electric vehicle sales, overall demand for silicone oil remained weak. Port disruptions from Typhoon Bebinca and Tropical Storm Pulasan caused severe congestion, compounding supply chain challenges. Economic weaknesses prompted government stimulus measures, but experts emphasized the need for stronger fiscal actions for a meaningful recovery.
Europe
The price of silicone oil in the European region exhibited varied movements throughout Q3 2024. At the start of the quarter, prices in the Netherlands rose significantly due to a strong rebound in the automotive sector, alongside increased industrial production in construction, electronics, and personal care. Supply constraints, driven by unexpected plant shutdowns and technical issues, further restricted production, contributing to higher prices. Demand from the automotive sector was fueled by surging vehicle production, particularly in electric vehicles. However, a disappointing passenger vehicle selling rate in Western Europe, compounded by ongoing high interest rates and elevated vehicle prices, posed challenges. In the second half of Q3, silicone oil prices in the Netherlands declined due to seasonal drops in demand from various downstream industries, particularly the automotive sector. Economic indicators suggested a slowdown, impacting overall consumption, while stable activity in machinery manufacturing was insufficient to counteract the decline. Improved domestic production led to oversupply as producers stockpiled inventories. Additionally, significant drops in U.S. crude oil prices influenced market sentiment and contributed to a bearish outlook. Overall, the Netherlands experienced the most notable price changes, with the silicone oil market exhibiting a hybrid trend. The price change of 3% from the previous quarter in 2024 indicated a consistently inclining pricing trend.
FAQs
Why did Silicone Oil prices increase in Q2 2025 globally?
Due to rising raw material costs, tight supply, and strong demand across automotive, electronics, and personal care sectors.
Why is the Silicone Oil Price Forecast for July 2025 showing mixed trends?
Prices may fall in North America and APAC due to easing freight and demand, but rise in Europe on sustained supply and cost pressures.
What is driving the Silicone Oil Demand Outlook?
Steady growth in electric vehicles, electronics, and personal care applications across all major regions.
How did the Silicone Oil Production Cost Trend behave in Q2 2025?
It increased due to higher silicon metal, energy costs, and logistics challenges globally.
