For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. Silicone Rubber (LSR) market recorded a modest quarter-on-quarter decline of 1.62%, shaped by shifting supply-demand dynamics and evolving cost structures. The quarter opened with strong upward momentum, supported by tight supply conditions, firm feedstock pricing, and steady demand from the construction, aerospace, and electronics sectors. Dow Inc.’s reported rise in silicone volumes during Q4 2024 reflected this trend, further reinforcing early-quarter bullishness.
February maintained the upward trend as rising raw material and labor costs, coupled with stable demand from automotive and aerospace sectors, continued to support prices. Manufacturing activity increased, albeit mainly due to inventory accumulation rather than a broad-based surge in end-user demand.
However, March marked a turning point, with market stability prompting suppliers to adopt more competitive pricing strategies. Feedstock cost pressures eased slightly, and inventories remained sufficient across the board. Despite healthy demand indicators, particularly from the transportation sector, the absence of major supply disruptions and improving trade flows encouraged moderate price adjustments. Overall, the quarter closed with a slight dip in pricing, reflecting a balanced market where improved supply-side conditions tempered previous cost-driven gains.
APAC
In Q1 2025, the Chinese Silicone Rubber market experienced a 3.56% decline quarter-on-quarter, shaped by evolving cost dynamics and sector-specific developments. January opened with slight upward pressure amid tightening supply and steady manufacturing performance. Shin-Etsu’s focus on specialty product sales in China and its reported growth in net sales and income added momentum to early-quarter pricing strength. In February, the market faced multiple cost pressures stemming from post-Lunar New Year port congestion, rising input costs, and currency-related export challenges. Global logistics disruptions, including uncertainty around potential U.S. tariffs, added to the complexity of the supply chain landscape. However, March marked a turning point as declining silicon metal prices—due to easing demand from the solar and polysilicon sectors—reduced production costs for Silicone Rubber, prompting a moderate correction. Supply remained sufficient with improved port operations in Ningbo and Qingdao offsetting temporary disruptions in Shanghai. On the demand side, downstream consumption held firm. Automotive sales surged, construction activity rebounded in key cities, and the aerospace sector maintained long-term growth momentum despite early-year delivery lags. The quarter ended with stable fundamentals, but the cost-driven adjustment in March outweighed earlier gains, leading to a modest overall fall in market performance.
Europe
Silicone Rubber prices in the German market witnessed a marginal quarter-on-quarter decline of 1.59% in Q1 2025, driven by shifting supply-demand dynamics and broader macroeconomic influences. The quarter began on a strong note, supported by higher Silicon Metal costs, strategic moves by major suppliers, and a notable uptick in buyer interest amid concerns over export availability. Improved plant utilization and resilient performance from key players like Elkem ASA and Wacker Chemie AG also contributed to early market firmness. However, momentum slowed in February as supply chain disruptions and labor strikes in Northern European ports hindered logistics, while demand from sectors like construction and automotive remained underwhelming. The aerospace sector continued to offer some stability, but economic uncertainty and cautious sentiment persisted across Germany. By March, market fundamentals shifted, with reduced sourcing costs from Chinese and European exporters and a strengthening Euro making imports more attractive. A marked slowdown in construction activity further weighed on demand, offsetting the moderate support from aerospace and automotive applications. Despite steady supply levels, these bearish drivers led to a slight downward adjustment in prices by the quarter’s end, signaling a market gradually recalibrating amid a complex mix of internal and external pressures.
For the Quarter Ending December 2024
North America
In Q4, the U.S. Liquid Silicone Rubber (LSR) market experienced a 3.14% decrease compared to the previous quarter, driven by a combination of factors impacting both supply and demand dynamics. Despite stable performance in the automotive sector, which saw continued vehicle production, the aerospace sector faced notable difficulties, resulting in weaker consumption of LSR. The manufacturing sector also showed signs of weakening, with a significant drop in new orders and production in December, which contributed to lower overall demand.
From a supply perspective, inventory levels remained elevated, and suppliers were able to manage stock efficiently, despite logistical challenges such as port congestion and staff shortages. However, this surplus in inventory, coupled with reduced purchasing activity, exerted downward pressure on pricing.
Sector-specific developments, such as Boeing's production challenges in the aerospace sector and continued labor and material shortages in construction, dampened market sentiment. While the automotive sector's growth and steady performance in consumer goods offered some optimism, the overall market sentiment remained cautious. As demand from key sectors like aerospace and construction remained subdued, these factors collectively contributed to the slight contraction in the LSR market during the quarter.
APAC
The Chinese Liquid Silicone Rubber market experienced a 6.16% decrease from the previous quarter, primarily driven by moderate supply-demand dynamics and weaker sectoral performance. Manufacturing activity showed signs of improvement, supported by increased orders and favorable economic signals, including China's lowered lending rates and positive manufacturing PMI. However, demand in key sectors like construction remained subdued, particularly with weaker performance in the construction industry. The automotive sector showed resilience, with strong sales figures helping to offset losses in other areas. Despite efforts by manufacturers to adjust production levels and manage inventories effectively, market participants experienced caution due to lower feedstock costs and a more conservative approach from buyers. The supply chain remained stable, with logistical improvements and adequate inventories, yet delayed transportation and production struggles persisted. In addition, sector-specific trends like declining construction activity, sluggish new project initiations, and ongoing challenges within the real estate market contributed to the overall market slowdown. However, strong domestic automotive sales and continued government efforts to support the housing sector provided cautious optimism for a potential rebound in demand moving forward. Overall, despite positive signals in certain sectors, the broader market experienced a natural price correction, reflecting the underlying challenges in demand stability and feedstock price trends.
Europe
In Q4 2024, the German Liquid Silicone Rubber (LSR) market experienced a slight downturn, marked by a 0.64% decrease from the previous quarter. This decline reflects moderate demand across key sectors, including automotive and construction, where activity remained subdued. While the aerospace sector continued to provide some support, particularly with strong performance from Airbus, the overall demand dynamics remained sluggish. Manufacturers faced a challenging environment, with weak sentiment prompting caution in procurement activities. This resulted in moderate inventory levels and a restrained approach from suppliers, with minimal proactive measures to stimulate demand. Additionally, port congestion persisted in major European ports, such as Hamburg and Antwerp, exacerbating the logistical challenges faced by the market. The construction sector, in particular, continued its underperformance, with political uncertainties contributing to an increasingly cautious outlook. Despite some improvement in the automotive sector, particularly in car registrations, overall demand remained limited. However, positive indicators from the aerospace sector provided a slight cushion, helping to stabilize the market. The combination of weak demand, restrained supplier actions, and logistical challenges contributed to the overall market decline, with manufacturers adjusting production levels to align with current conditions.
For the Quarter Ending September 2024
North America
In Q3 2024, Liquid Silicone Rubber (LSR) prices in North America exhibited stability, with a 2.70% rise from the previous quarter. This consistent trend was primarily due to balanced supply and demand conditions across major sectors such as automotive, construction, and aerospace.
Although demand from the automotive and construction industries remained steady, the aerospace sector saw reduced consumption, largely driven by Boeing’s ongoing underperformance, which limited stronger growth in LSR prices. Despite these sector-specific challenges, suppliers successfully navigated the period with minimal price fluctuations, supported by stable raw material costs and relatively smooth supply chain operations.
Disruptions like staff shortages and logistical challenges were present but had limited impact on overall market dynamics. The correlation in price changes between the first and second halves of the quarter was neutral, at 0%, further emphasizing a stable pricing environment. By the close of Q3 2024, LSR prices in the U.S. settled at USD 9,929/MT FOB-USGC, reflecting the market’s ability to maintain equilibrium despite pressures from weaker demand in specific industries like aerospace.
APAC
In Q3 2024, the APAC Silicone Rubber market saw a notable upward trend in prices, fueled by a combination of critical factors. The quarter faced substantial supply chain disruptions, including logistical obstacles and port congestion, which intensified the demand-supply imbalance. Rising feedstock costs, especially for Silicon Metal, prompted leading manufacturers to strategically adjust prices. Additionally, heightened demand from sectors such as manufacturing and construction, along with proactive inventory buildup by market participants, contributed to the upward momentum. In China, the center of these price changes, market dynamics were particularly dynamic. Local manufacturers raised exquotation prices in response to declining profit margins and increased production costs, fostering a bullish market outlook. Prices reflected a solid quarterly increase of 10.50%, while a year-over-year comparison showed an 8.79% rise. Liquid Silicone Rubber closed the quarter at USD 3,603/MT FOB Shanghai, underscoring a generally positive pricing environment. Despite the challenges, manufacturers maintained stable operations without any reported plant shutdowns, further supporting the price uptrend.
Europe
In Q3 2024, Silicone Rubber prices in Europe saw a notable 2.70% rise, largely driven by price hikes from key Asian exporters, particularly China. Weaker demand from the automotive sector and subdued activity in the construction industry contributed to this upward trend, while increased demand from the aerospace sector helped maintain overall market stability. Manufacturers, facing pressure from shrinking margins, responded by raising ex-quotation prices to meet growing global demand. The Netherlands experienced the most significant price adjustments, consistent with trends across the region. Seasonal declines in demand, compounded by economic uncertainties, further influenced market conditions. Compared to the previous quarter, Silicone Rubber prices rose by 2.60%, though they marked a 7.92% drop year-over-year for the same period. Despite supply disruptions and plant shutdowns, the quarter-end price for Liquid Silicone Rubber DDP Rotterdam reached USD 10,424/MT, underscoring a steadily increasing pricing environment. This growth highlights the balance between rising demand in key sectors and the challenges posed by fluctuating supply conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, the Silicone Rubber market in North America experienced a notable upward pricing trend. This quarter, market prices were influenced by several key factors, including increasing production costs, utility expenses, and energy prices. Additionally, the anticipation of higher feedstock costs, particularly Silicon Metal, contributed to the upward price pressure.
The demand from downstream sectors, such as the automobile, construction, and aerospace industries, also played a significant role in driving prices higher. Adequate purchasing activities and sufficient inventory availability ensured that the supply side remained stable, despite the constraints posed by ongoing global supply chain disruptions and the severe drought impacting the Panama Canal.
The overall trend was bullish, driven by a robust increase in new vehicle sales in the automotive sector and a notable surge in the construction sector, as indicated by the Dow Jones Construction & Materials index. Although the aerospace sector faced challenges due to lower production rates and Boeing's supply chain disruptions, the positive demand dynamics in other sectors offset these impacts. The quarter-ending price for Liquid Silicone Rubber in Texas was USD 9470/MT, highlighting the positive pricing environment throughout Q2 2024.
APAC
The second quarter of 2024 witnessed a noteworthy increase in Silicone Rubber prices across the APAC region, driven primarily by supply chain disruptions, heightened freight charges, and robust demand from key sectors like automotive and construction. The rising cost of feedstocks, particularly Silicon Metal, contributed significantly to the overall pricing environment. Suppliers faced increased production costs, which were further exacerbated by the geopolitical tensions impacting global trade routes. These factors collectively fostered a bullish market sentiment, pushing prices upward consistently throughout the quarter. In South Korea, the market dynamics were particularly pronounced, with the region experiencing the most significant price changes. The upward trend in Silicone Rubber prices was bolstered by a combination of local economic conditions and external market forces. The manufacturing sector's resurgence and increased export demand played crucial roles in sustaining this upward momentum. Seasonal factors also influenced the market, with the second half of the quarter showing a slight but notable increase in prices compared to the first half.
Europe
The second quarter of 2024 has been marked by a consistent upward trajectory in Silicone Rubber prices across the Europe region. This surge has been primarily driven by several factors, including increased demand from key downstream sectors such as automotive and aerospace, which have shown considerable resilience and expansion. Additionally, higher freight charges and proactive supplier actions have further bolstered the price escalation. Supply chain disruptions, particularly those stemming from logistical challenges and shipping reroutes, have also contributed to the higher costs. Furthermore, market participants actively engaged in inventory accumulation in anticipation of future demand spikes, which has exacerbated the price rise. Focusing on Germany, the nation has experienced the most pronounced changes in Silicone Rubber prices this quarter. The overall trend reflects a robust market sentiment characterized by strong demand and significant supplier activity. Seasonality has further amplified price fluctuations, with a notable correlation between increased manufacturing activities and rising prices. Compared to the previous quarter in 2024, prices have surged by 4.8%, underscoring the persistent bullish market conditions. The quarter concluded with the price of Liquid Silicone Rubber DDP Hamburg in Germany reaching USD 9760/MT. This quarter has clearly been marked by a positive pricing environment, driven by strong demand, supply chain disruptions, and strategic inventory management by suppliers.
