For the Quarter Ending June 2023
North America
Silicone Rubber prices showcased a consistent surge during Q2 of 2023 in the USA market, backed by the overwhelming market performance of the automotive industry. While concerns remained high over whether escalating interest rates would significantly curtail spending, recent indicators suggested that the consumers were confident enough to make large purchases. The automotive industries experienced acute shortages earlier this year amidst fears about the availability of semiconductors that hindered mass assembly until the later stages of the period when the situation improved. Consequently, a combination of better supplies and rising consumer appetite promoted strong growth going forward into the next fiscal season. During the year's second quarter, external factors such as the bankruptcy of two prominent financial institutions towards the end of the first quarter adversely affected the economy. However, the temporary suspension of the national debt ceiling helped prevent a recession. Additionally, inflation levels measured by the USA's Consumer Price Index (CPI) increased by just 0.1% in May, following a significant rise of 0.4% in April, indicating diminishing price pressures in the market.
APAC
The price of Silicone Rubber showcased mixed sentiments in the second quarter of 2023 in the Asia-Pacific region, but overall, a significant increase in the prices was witnessed during Q2. Silicone Rubber market momentum remained optimistic during the quarter as factory production in countries like South Korea surprisingly rebounded strongly in May. According to several market reports, May's industrial output index registered a notable improvement of 3.2% in South Korea, compared to the previous month's decline of 0.6%. Driving this sudden uptick were increases observed in manufacturing components relevant to cars and computer chips. Retail sales and capital expenditure also exhibited promising signs that boded well for South Korea's gradually picking up the economy. This positive news served as a counterbalance against potential negative effects seen due to the increasing cost of borrowing caused by central bank policy tightening or geopolitical tensions that could dent the overall economic landscape. The Consumer Price Index (CPI) of South Korea rose by 0.3% on a monthly basis in May, which indicated the inflationary pressure in the country. However, the consumers were ready to make expensive purchases, such as buying an automobile, which surged the consumption of Silicone Rubber in the market.
Europe
Like North America, European countries witnessed a consistent incline in the Silicone Rubber pricing trend during the year's second quarter. Throughout Q2 of 2023, European Silicone Rubber prices experienced sustained growth as new auto purchases continuously grew. May statistics indicated a ten-month streak of expanding sales; prior to these gains, sales had contracted for thirteen straight periods before breaking onto its current winning track. These latest developments point toward greater consumer acceptance of electric vehicles driving further demand for Silicone Rubber. The Consumer Price Index (CPI) of countries like the Netherlands rose by 0.3% in May. Though the European countries were dealing with inflation during the quarter, vehicle purchases increased due to pent-up demand, causing an increase in the consumption of Silicone Rubber. Moreover, the Manufacturing Purchasing Manager's Index (PMI) of the Netherlands dropped to 44.2 in May from 44.9 in April, indicating a contraction in the region's industrial activity. As the production rate of various commodities contracted during the quarter, as indicated by the falling PMI of the region, the prices of various products surged.
For the Quarter Ending March 2023
North America
Silicone Rubber showcased contradictory market sentiments in the first quarter of 2023, which was backed by altering supply and demand dynamics. Silicone Rubber prices increased in January and again in February before beginning to decrease as the conclusion of the quarter approached. As soon as the semiconductor supply started to improve, the automotive industry started to rebound, but it was severely harmed by the economic turbulence brought on by the failure of two big US banks. Silicone Rubber consumption by the automotive industry decreased because of the recession's harsh effects, which eventually led to a price drop. Therefore, In the USA, the price of Liquid Silicone Rubber was assessed at USD 5600/MT FOB USGC.
APAC
Silicone Rubber prices in the Asia-Pacific region rose steadily during the first quarter of 2023, helped by rising downstream demand. As soon as the first quarter of the year began, the automotive industry showed a market surge, which increased purchases of Silicone Rubbers. A surge was observed because of a sharp increase in the automotive industry's industrial output and sales. Initially, the recovery in Silicone Rubber was sharp as it attempted to recover from its losses from the previous year. The growing momentum of Silicone Rubber did, however, slow down again in February, only to increase drastically in March. Hence, in South Korea, the Liquid Silicone Rubber prices assembled at USD 7000/MT CFR Busan during March.
Europe
Sales of Silicone Rubber throughout Europe showed conflicting feelings. Before a significant increase in March, the price of Silicone Rubber was declining in the first two months of the quarter. Prices for Silicone Rubber rose in March as China's market began to open more. This rise was made possible by an increase in the supply of semiconductors. As the output and supply of semiconductors expanded, so did the demand for Silicone Rubber in the automotive industry. Additionally, throughout the quarter, the underserved demand in the European market drove up auto sales, which in turn drove up inquiries for Silicone Rubber. Because of this, the price of Liquid Silicone Rubber in Germany was USD 7700/MT DDP Hamburg in March.
For the Quarter Ending December 2022
North America
The North American market for Silicone Rubber got off to a great start in the fourth quarter of 2022; the prices showcased a notable increase in October before steadily declining during the remainder of the quarter. Due to variations in downstream demand from numerous industries, the market value of Silicone Rubber revealed contradicting market sentiment. The domestic market's demand for Silicone Rubber from the construction and automotive sectors fluctuated because of their stable to weak performance throughout the quarter. Silicone Rubber industry growth was also impacted by upstream costs and variable production costs. Therefore, the estimated price for Liquid Silicone Rubber in the USA in December 2022 was USD 4655/MT.
APAC
Amidst weak downstream demand and lower upstream costs, the price of Silicone Rubber in the Asia-Pacific region steadily decreased during the fourth quarter of 2022. As the downstream automotive and construction industries underperformed in terms of output and market performance throughout the quarter, the demand for Silicone Rubber declined. Additionally, the cost of producing Silicone Rubber decreased as energy costs fell throughout the time under consideration, which eventually decreased the market value of the product. Consequently, the estimated price for Liquid Silicone Rubber in China during December was USD 3895/MT.
Europe
During the fourth quarter of 2022, the price of Silicone Rubber in the European market dropped consistently due to weak downstream demand and lower upstream costs. The demand for Silicone Rubber decreased during the quarter as the downstream automotive and construction sectors underperformed in terms of output and market performance. Throughout the period under consideration, Silicone Rubber production costs also declined, which eventually resulted in a decline in the product's market value. As a result, the assessed cost of liquid silicone rubber in Germany for the month of December was USD 8440/MT.
For the Quarter Ending September 2022
North America
Due to fluctuating dynamics between supply and demand, the price of Silicone Rubber in the North American market showed a mixed trend in the third quarter of 2022. Silicone Rubber prices rose in July, fell in August, and then rose again in September. The primary causes of the price decline for Silicone Rubber in August were the increase in industrial production rates, the excess supply, and the overabundance of stockpiles. The weak downstream demand of the construction and automotive sectors added to this trend's support. Silicone Rubber's pricing trend altered in September because of supply shortages, supply chain disruptions, and an increase in demand. Altogether, the price resurges of Silicone Rubber in North America were influenced by supply constraints, decreased inventories, and revived demand. Conclusively, the prices of Liquid Silicone Rubber assembled at USD 4790/MT FOB USGC during September in the USA.
APAC
The prices of Silicone Rubber declined throughout the third quarter of 2022 in the Asia-Pacific market, backed by excessive supply and weak downstream demand. During the quarter, the industrial operation rates in exporting countries were high, supply was more than sufficient, and the inventories were overflowing with too many stocks, which contributed to the better material availability in the market; hence the Silicone Rubber prices were dropped. Furthermore, the downstream demand from the construction and automotive industries was weak due to poor output, which supported the reduced price of Silicone Rubber. Hence, the assessed price value of Liquid Silicone Rubber was USD 5000/MT CFR Busan in South Korea during September.
Europe
The price of Silicone Rubber in the European market remained unpredictable in the third quarter of 2022 because of shifting dynamics between supply and demand. The prices of Silicone Rubber followed an increasing trend in July and September while showcasing a drop in August. The rise in industrial production rates, excess supply, and the oversupply of stocks were the main contributors to the price fall for Silicone Rubber in August. Weak downstream demand from the automotive and construction sectors strengthened this trend. September 2022 saw a change in the pricing trend for Silicone Rubber because of supply constraints, disrupted supply chains, and increased demand. Overall, tighter supplies, smaller inventories, and a resurgent market impacted Silicone Rubber's price increase in Europe. In conclusion, the price value of Liquid Silicone Rubber was settled at USD 9250/MT DDP Hamburg in Germany in September 2022.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Silicone rubber prices, like other elastomers, remained uptrend for a significant part. Domestic downstream demand from key industries, including Healthcare, automotive, and electricals & electronics, remained stable to the firm, keeping the consumption levels on the optimistic side. However, in the international market, China, a key export destination to the US Silicone rubber, faced a major deterioration in demand as covid cases loomed large throughout the quarter. Resurgence in covid cases also hampered supply chains where port congestions and logistical constraints crippled normal operations of supply chains. Material availability remained snug in the China market, while demand fundamentals also remained underwhelming.
APAC
Silicon Rubber prices remained majorly firm during the second quarter of 2022 due to stable demand from the downstream industry and pressured feedstock prices. China is a major importer of Silicon metal worldwide and exports Silicone polymers, including Dimethylsiloxane (DMC), to the international market. DMC prices wobbled during the quarter, where after an initial bullish rally, prices declined towards 2nd half of the quarter. However, the decline in feedstock prices has a limited impact on Silicone rubber as downstream demand remained buoyant. In India, traders revealed a strong sentiment throughout the quarter as the imported material prices maintained an upward trend in the April-June 2022 quarter.
Europe
Silicone Rubber consistently rose in the European region during the second quarter of 2022. Freight charges have witnessed a marginal slump in the last few weeks of June. However, congestion at Antwerp, Rotterdam, and Bremerhaven ports has worsened the supply situation. Northwestern Europe has been facing terminal congestion, especially in Rotterdam and Bremerhaven, which remains a major problem. This ongoing operational disruption in the global supply chain affects yard density levels and vessel waiting times. Therefore, the supply of the material in the European ports remains weak, resulting in the firm pricing outlook of the imported material in the German market. Meanwhile, the Euro value has declined as the US dollar became a haven for investors and shareholders.
Despite the deteriorating trend of feedstocks in March 2022, the Chinese domestic silicone rubber market climbed upwards and onwards during the first quarter of 2022. Silicone rubber is in high demand in both the domestic and foreign markets. Silicone rubbers are widely used in the healthcare and medical industries, as well as the electrical and electronics and automotive industries. Meanwhile, the silicone rubber feedstock market was extremely volatile in March, with prices first rising but quickly falling because to the recurrence of covid cases in China. Silicone rubber and Silicone oil are made mostly from Dimethylcyclosiloxane (DMC). In the Chinese market, Silicone DMC prices have increased in first couple of weeks and were assessed at USD 6080 per MT on FOB basis while DMC market declined from mid-2nd week onwards and finally stabilized in the last week of March and settled at USD 5688 per MT on FOB basis.
Europe has been mired in the tight grip of inflation and elastomer market has been no different. All key elastomers have been witnessing uptrend in the pricing sentiment and Silicone Rubber prices have also been rising in the European market. Both suppliers and buyers have been reluctant to be drawn into lengthy monthly contract discussions given the strong trend of the Silicone rubber prices. Feedstock Silicon prices have been consistently rising as both crude oil and LNG prices have been robust since the beginning of Russia-Ukraine war and European bid to limit dependency on Russian supply of energy feedstocks. Meanwhile, demand dynamics have been stable to weak in the backdrop of consistently rising prices. Transportation and logistics have also been hampered since the beginning of the European conflict. Hence, in Europe Silicone rubber prices increased by 5-7% during the first quarter of 2022.
