For the Quarter Ending December 2022
North America
Prices of Silicone oil have gained a downward momentum in the US market throughout the fourth quarter of 2022, backed by the ample material availability in the domestic market and weak downstream demand. Furthermore, the sharp decline in freight charges resulted in cheap imported materials. In addition, the automotive industry's performance remained comparatively weak in the fourth quarter, limiting Silicone oil consumption. Meanwhile, the supply chain has operated normally, which leads to better material availability in the domestic market. Thus, after the conclusion of Q4, Silicone oil CFR Houston prices were assessed at SC-85% 100CST 3995/MT with a monthly declination of 7.4% during December.
Asia-pacific
Silicone oil prices remained under pressure in China throughout the fourth quarter of 2022. Demand from the downstream automotive, cosmetics, and pharmaceutical, along with other competitive industries, has remained on the weak side due to the sluggish consumer sentiment in the region. In addition, under the influence of persistent lockdown implementation and the zero covid policy, manufacturers have started facing a labor shortage coupled with supply chain disruption, which majorly pertains to logistical constraints. Furthermore, manufacturing activity declined in Q4 as Covid-19 outbreaks continued to weigh on both output and demand. According to data, PMI dipped below 50 (i.e., 49.4), signifying a contraction in industrial and manufacturing activity. Inflows of new export orders have also fallen amid weak buying sentiments. Thus, Silicone oil SC-85% 100CST FOB Shanghai prices were settled at 3305/MT during December.
Europe
Prices of Silicone oil have witnessed a downward trend in the European market during the fourth quarter of 2022. The latest decline in the prices was attributed to the steady inflows of cheap imported material from China, a key exporter of Silicone oil. In addition, demand from the downstream automotive, cosmetics, and pharmaceutical, along with other competitive industries, have remained weak amid sluggish buying sentiment in the region. Meanwhile, the threat of recession has eased in Q4. According to the data, inflation in Europe dropped from 10.1% to 9.2% in December 2022. In terms of domestic production, operating rates remained under check due to weak demand. Supply chain dynamics have improved in the European continent with no major port congestion, thus, facilitating the availability of imports and inter-European transportation, respectively. Thus, in Germany, prices of Silicone oil FOB Hamburg were assessed at SC-85% 100CST 3995/MT during December 2022.
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.
