For the Quarter Ending March 2024
North America
In the USA, the Silicone Rubber market witnessed an upward price trend amidst sectoral shifts. The automotive sector displayed resilience, evidenced by the sale of 3,797,420 units, signaling 2.83% decline from previous quarter but increasing month on month growth. In the feedstock market the price of the Silicon metal witnessed a notable surge. Conversely, the aerospace sector faced challenges, notably with Boeing's decision to limit 737 productions due to heightened regulatory scrutiny and safety concerns.
The decline in Boeing's 737 MAX jetliner production adversely affected the aerospace industry, exacerbated by the Federal Aviation Administration's production cap and ongoing safety issues. However the construction sector continued to outperform in the respective quarter. Despite these challenges, the Silicone Rubber market in the USA experienced a price uptick, reaching 9660 USD/MT FOB-USGC, marking a significant 3.87% increment in Q1 2024 from Q4 2023.
This price incline is attributed to various factors, including steady demand from the automotive sector and in the other manufacturing sector, highlighting the market's resilience amidst sectoral challenges in the aerospace market. Additionally, support from overseas markets like Mexico, Brazil, and Canada further bolstered the price trend of Silicone Rubber in the respective quarter, highlighting the market's resilience amidst sectoral challenges.
APAC
The Silicone Rubber market in the APAC region witnessed an inclining phase in the current quarter of 2024 (Q1) from January to March. The price of the feedstock majorly Silicon metal witnessed a notable surge in the respective period. The overall market situation was positive, with adequate supply in the downstream market. However, the Indian market notably outperformed during this period, indicating regional disparities in demand dynamics. In the Automobile market total 1187081 Units of Automobile manufactured in this Quarter marking a robust sale in this respective period. Nevertheless the Chinese market also witnessed positive economic activities after the Lunar Year holidays which has counterbalanced the decline demand for the Holidays sessions. Totally 6717000 Units of Automobile sold in this quarter in the Chinese market which is comparatively lower as compared to the previous quarter. However, the aerospace market is also underperforming in the Chinese market. However, in the Indian market, the activeness in the Indian government witnessed in the Aerospace sector. Hindustan Aeronautics Ltd the Indian Aerospace company as of March 31, 2024, has huge order books, with additional major orders expected during FY 2024-25. Japan on the other hand replicated the overall Asian market scenario being the major exporter of the Silicone Rubber in the Asian market. As of this quarter ending the price of the Silicone Rubber halted at 3150 USD/MT FOB-Shanghai marking an increment of 5% in this quarter.
Europe
In the European market the price of the Silicone Rubber witnessed a challenging scenario in Q1 2024. From the previous quarter the price has shown drastic fall which has resulted into a retracement from the supplier’s end. The suppliers managed the inventories levels with respect to the witnessed demands from the core sectors which has not impacted majorly in the price trend in this quarter. However, amidst these factors, the downstream automobile market demonstrates resilience with a total of 694,825 units sold, albeit marking a 1.66% decline from the previous quarter's 706,543 units in Q3 2023. Despite challenges, this positive performance underscores the steady demand for automobiles in the region. Nevertheless in the Aerospace sector market total 142 deliveries to 45 customers given from the major Aircraft maker Airbus in this quarter. The safety issue in the USA Aircraft maker Boeing’s aircraft has significantly impacted positively on the European aircraft maker Airbus market which has thereby influenced the demand for the various commodities including Silicone Rubber in the European market.
For the Quarter Ending December 2023
North America
In the North American region, the price of Silicone Rubber experienced a decline in the fourth quarter of 2023, despite an increase in the price of the feedstock, primarily Silicon metal. In terms of downstream automobile market, a positive trend in U.S. vehicle sales, with a notable month-on-month increase reaching 15.8 million units (annualized) in December, surpassing the expected 15.5 million units, there were indications of economic challenges.
However, overall economic conditions reflected a return to declining output, and the downturn in new orders intensified, highlighting weakness in both domestic and external demand conditions. This led companies to adjust their input buying activities. The supply of Silicone Rubber has been observed at elevated levels.
The contraction in the overall automobile market in the European region significantly impacted the exporting business of Silicone Rubber, playing a substantial role in the price decline this quarter. As of this quarter, the price of Silicone Rubber concluded at 9300 USD/MT FOB-USGC, marking a decline of 1.06%.
APAC
In APAC region majorly China, the Silicone Rubber market witnessed price stability, aligning with a marginal decrease in the price of silicon, a crucial raw material. This trend coincided with a contraction in China's factory activity, reaching its lowest point in six months in December. Concurrently, service activity remained in a state of contraction, as evidenced by the Purchasing Managers' Index (PMI) survey conducted by the National Bureau of Statistics (NBS). The survey underscores ongoing economic challenges in the world's second-largest economy, attributed to issues in the property sector, constrained consumer spending, and factories adjusting selling prices downward. Despite these challenges, the supply of Silicone Rubber in the downstream market maintained a moderate to high level. While demand from the automobile sector remained robust, the price of Silicone Rubber continued to exhibit a stable trend. This persistent stability can be attributed to mixed economic conditions and fluctuations in the global market's supply and demand dynamics. The availability of sufficient inventories among suppliers also contributed to influencing the pricing trend. As of this quarter, the price of Silicone Rubber concluded at 3000 USD/MT FOB-Shanghai.
Europe
As of the conclusion of the fourth quarter of 2023, the Silicone Rubber market in the European region witnessed a decline despite an increase in the price of its primary raw material, Silicon metal. The automotive sector faced challenges, notably evident in a significant reduction in new car registrations during this quarter. This decline can be directly attributed to the premature termination of the environmental bonus for electric vehicle (EV) purchases, affecting the demand for components such as silicone rubber. Both the manufacturing and services sectors experienced contractions in output, contributing to broader business challenges. Germany, a key player in the Euro area, notably influenced the decline in business activity, as indicated by PMI data. Additionally, the German construction industry encountered difficulties in 2023, characterized by reduced activity stemming from market uncertainty and elevated interest rates, resulting in cutbacks in staffing and purchasing. As of this quarter, the price of Silicone Rubber concluded at 9200 USD/MT DDP-Hamburg, marking a decline of 3.15%.
For the Quarter Ending September 2023
North America
The North American market witnessed mixed sentiments in the Silicone Rubber pricing trend during quarter 3 of the year 2023. The prices showcased a notable surge in July, followed by a stable market trend, only to decline in the last month of the quarter. The US market price of Silicone Rubber increased in July due to strong demand sentiments. In the US market, vehicle sales increased by over 20% in the month of June, while Western Europe sales also increased by around 19.6% in the same month, boosting the demand for Silicone Rubber significantly. As a result, Silicone Rubber's procurement increased during July. However, the Silicone Rubber market in the USA remained stable during August due to a balance between supply and demand. This steadiness was mainly driven by positive developments in the global automotive sector. Notably, automobile sales saw a substantial double-digit increase in July compared to the previous year in the USA, Western Europe, and Eastern Europe. However, beneath this stable surface, there was a significant decrease in the costs of the raw materials used to produce Silicone Rubber in the previous month. These price fluctuations continued into August, affecting the overall production costs of Silicone Rubber. Despite the growth in various industries, the consistent changes in raw material prices offset any potential price shifts in Silicone Rubber. Besides, the price of Silicone Rubber encountered a significant decline in the US market during September despite the continuous expansion witnessed in the automotive sector. This downturn was predominantly influenced by a drop in the prices of its raw materials. Feedstock Silicone prices notably decreased throughout the month. As a result, the production costs associated with Silicone Rubber saw a considerable reduction, leading to a significant decrease in its market value.
APAC
Silicone Rubber prices showcased mixed market momentum in the Asia-Pacific region during the 3rd quarter of 2023. The Silicone Rubber prices surged in July only to become stable in August and fall back again in the month of September. Silicone Rubber prices surged in the Asian market during July on the back of increased downstream demand. According to reports, new vehicle sales surged significantly in July as compared to last year. As the Asian automotive industry performed well, Silicone Rubber consumption increased. Furthermore, the Asian new vehicle market witnessed remarkable growth in August 2023 as well. This positive shift can be attributed to the gradual recovery from the impact of COVID-19 lockdowns, which began easing in the latter part of the prior year. Furthermore, the improved availability of semiconductors enabled automotive manufacturers to ramp up production and reduce order backlogs. However, the surge in demand was counterbalanced by the decline in production costs, which kept the Silicone Rubber price stable in August. Moreover, the slump in Silicone Rubber prices in September can be attributed to the continuous decline in the prices of the raw material, Silicone. These declining raw material costs continued to exert downward pressure on the production expenses of Silicone Rubber. Consequently, despite a noticeable increase in demand from downstream sectors, the prices of Silicone Rubber dropped in the last month of the quarter.
Europe
The prices of Silicone Rubber showcased mixed sentiments in the European market during the 3rd quarter of the year 2023. The prices plunged in the first month of the quarter, followed by a stable market trend in August, which led to a drastic decline in September. The price drop was a result of a notable reduction in production costs, which was linked to the prolonged decrease in the price of the raw material Silicone. The decrease in raw material costs had a direct impact on the final pricing of Silicone Rubber, leading to a continuous downward trend in its market price. As a result, despite positive developments in the automotive sector, the European Silicone Rubber market continued to be influenced by the ongoing cost dynamics driven by the weakening prices of raw materials. However, during August, prices stabilized primarily due to minimal fluctuations in the costs of Silicone. This stability in raw material prices was a significant factor in supporting the Silicone Rubber market. Additionally, the automotive industry's performance, both domestically and globally, remained consistent during this period. This steady demand and production in the automotive sector played a crucial role in maintaining the stable market value of Silicone Rubber.
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.
For the Quarter Ending March 2022
North America
Silicone rubber market remained bullish throughout the first quarter both domestically produced material as well as imported material observed strong pricing dynamics. Feedstock Silicone prices have been robust in the backdrop of limited availability of the material and growing demand from different industries. USA imports Silicone majorly from China and Chinese Silicone market was termed as firm despite weakening of pricing dynamics towards later stages of Q1 due to resurgence in covid cases altering demand-supply dynamics. On the demand side, Silicone rubber consumption has remained stable to firm from downstream industries including healthcare & medical and automotive. Hence, as of March 2022, Silicon Rubber prices increased by 5-6% during the first quarter of 2022 and settled at USD 4500 per MT on FOB basis for Mooney Viscosity 20-60.
Asia Pacific
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
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.
