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.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Silicone Oil market experienced a pronounced downtrend in pricing, driven by a confluence of factors that exerted downward pressure on market valuations. The quarter was marked by a persistent oversupply situation, particularly from Asian suppliers, coupled with moderating demand from key industries such as lubrication, cosmetics, and electronics. This imbalance was further exacerbated by significant plant shutdowns and disruptions, including the prolonged offline status of major silicone oil production units due to uncompetitive pricing and operational inefficiencies.
In the USA, the pricing landscape for Silicone Oil saw the most dramatic shifts. The overall trend was one of continuous decline, influenced by substantial de-stocking activities and a marked slowdown in procurement schedules. Seasonality also played a role, with the typically lower summer demand contributing to the bearish market sentiment. The correlation between these factors led to a significant price decline of 17% between for end-to-end quarter price comparison.
This quarter-ending price of USD 2100/MT for Silicone Oil (SC-85%) 100 cst CFR Houston underscores the negative pricing environment. The combination of excessive inventory levels, high transport costs, and subdued consumer demand created a challenging market scenario. The consistent downward pressure indicates a negative pricing environment, reflecting an overall bearish sentiment in the market.
APAC
In Q2 2024, the silicone oil market in the APAC region experienced a marked decrease in prices, driven primarily by several significant factors. Overproduction and high inventory levels have significantly pressured prices downward. Geopolitical tensions and logistical challenges, including port congestions and elevated freight costs, have further compounded the situation. As a result, the market has seen a bearish sentiment prevail. South Korea has been particularly impacted, with pronounced price declines. The overall trend in South Korea reflects a sharp decline in silicone oil prices, exacerbated by seasonal factors and a subdued economic environment. Q2’s ending price remained 17% below the Q1 ending price. The price decline was more prominent in the first half of quarter than the second half as few suppliers de-stocked their inventories after adjusting expectations. Moreover, the market faced additional strain from plant disruptions and temporary shutdowns, including key facilities operated by Dow and Wacker Chemie, which heightened supply chain vulnerabilities. Despite some stabilization attempts, the overall sentiment remained negative. The quarter ended with silicone oil prices at USD 1960/MT for 100 cst CFR Busan, reflecting the consistent downward pressure and challenging market conditions. This pricing environment underscores the need for strategic adjustments to manage overcapacity and logistical inefficiencies moving forward.
Europe
In Q2 2024, the Silicone Oil market in the Europe Region has been predominantly bullish, driven by a confluence of factors that have sustained an upward trajectory in prices. The surge in crude oil prices, which reached USD 89/Barrel in April, coupled with rising costs of upstream raw materials like chloromethane, has significantly impacted the production costs of Silicone Oil. Moreover, high electricity costs incurred in February and March continued to ripple through the inventory costs into the current quarter. The demand for Silicone Oil has been robust, particularly in the cosmetics and homecare sectors, buoyed by the onset of summer and the associated increase in discretionary spending. Additionally, elevated freight charges and persistent port congestion have further strained the supply chain, contributing to higher spot prices. Germany has experienced the most significant price fluctuations, underscored by a compelling rise in demand amidst stable supply conditions. The domestic market saw heightened activity due to the approaching travel season, with the cosmetics industry notably intensifying its procurement efforts. However, plant disruptions, such as Wacker Chemie’s Koeln site shutdown for over 14 days due to Rhine region flooding, also played a pivotal role in tightening supply and elevating prices. Seasonal demand trends have accentuated these dynamics, with the early part of the quarter seeing higher price rises than the latter half. Compared to the previous quarter, prices in Germany recorded a 1% rise, reflecting a stable yet assertive pricing environment. The end of the quarter saw a price of USD 3350/MT for Silicone Oil (SC-85%) 100 cst FOB Hamburg. Overall, the Q2 2024 period has been characterized by a positive pricing sentiment, propelled by robust demand, supply chain challenges, and elevated production costs.
