For the Quarter Ending June 2025
North America (USA)
• The Spot Price for silicone rubber in North America fell by approximately 2.0% Q-o-Q in Q2 2025, as reflected in a softer Price Index.
• Supply stayed well-balanced, with consistent production and ample inventories, but demand from automotive, construction, and electronics remained subdued.
• Logistical pressure from port congestion and higher shipping costs weighed on the Production Cost Trend, partially offsetting the price decline.
• The Demand Outlook was cautious due to weak activity in key sectors, though growth in new home sales and vehicle production provided some support.
• Uncertainty around credit conditions and soft export orders capped any speculative Price Forecast upside.
Why did the price of Silicone rubber change in July 2025 in the US?
• Silicone Rubber prices increase in July 2025 amid gradual improvement in demand from automotive and electronics sectors.
• Producers raise offers slightly as stable raw material costs combine with improved order volumes to support margins.
• Buyers return to the market cautiously, encouraged by easing macroeconomic uncertainty and improved budget visibility.
• Tighter availability and firmer procurement interest reduce competition among sellers, allowing prices to move upward.
Europe
• The Spot Price in Europe (Netherlands) decreased by around 2.0% Q-o-Q in Q2 2025, reflecting in the declining Price Index.
• Supply was stable due to steady local output and imports, though port delays in Rotterdam and Hamburg created shipping inefficiencies.
• The Production Cost Trend showed slight moderation due to stable siloxane prices and energy cost hedging, helping soften impacts.
• The Demand Outlook remained depressed, with weak automotive sales and construction activity offset only partially by growth in healthcare and electronics.
• The Price Forecast indicates limited recovery in Q2 2025 unless sector-specific demand picks up substantially.
Why did the price of silicone rubber change in July 2025 in Europe?
• Silicone Rubber prices rise in July 2025, driven by a gradual sign of positivity in the procurement activities from the market participants.
• Improved economic sentiment across parts of Europe encourages buyers to resume forward purchases, supporting firmer pricing.
• Stable feedstock supply and consistent production enable suppliers to manage rising orders without major disruptions.
• Asian exporters reduce shipment volumes, easing competitive pressure and allowing European suppliers to implement modest price hikes.
APAC
• The Spot Price in APAC (Indonesia) dropped approximately 2.6% Q-o-Q in Q2 2025, leading to a weaker Price Index.
• Supply stayed abundant with strong import flows from China and Japan, combined with smooth port operations throughout the quarter.
• The Production Cost Trend was slightly favorable due to lower upstream siloxane and silicone input prices, supporting margin stability.
• The Demand Outlook remained lackluster, impacted by slowing automotive production, early monsoon in Southeast Asia, and cautious restocking behavior.
• The Price Forecast points to continued softness into Q2 2025, unless infrastructure and automotive orders rebound strongly.
Why did the price of silicone rubber change in July 2025 in APAC?
• Silicone Rubber prices rise in July 2025, supported by gradual improvement in regional demand.
• Inventory levels begin to ease in key markets like China and Vietnam, enabling suppliers to implement modest price increases.
• Stronger construction activity ahead of post-monsoon recovery boosts demand from sealants and industrial users.
• Stable-to-firm feedstock costs and improved market sentiment encourage procurement despite lingering macroeconomic caution.
For the Quarter Ending March 2025
North America
• The Silicone Rubber Price Index in North America saw a quarter-on-quarter decline of 1.62% in Q1 2025.
• January opened with upward momentum, fueled by tight supply, firm feedstock prices, and consistent demand from construction, aerospace, and electronics sectors.
• February maintained an upward trend due to higher raw material and labor costs, and stable demand in automotive and aerospace markets.
• March saw moderate price corrections as feedstock cost pressures eased, and inventories remained sufficient.
• Silicone Rubber Spot Price softened slightly by the end of the quarter as supply-side improvements met stable demand.
Why did the price of Silicone Rubber change in April 2025 in the US?
Prices decreased by 1.1% due to improved trade flows, sufficient inventory, and suppliers adopting competitive pricing strategies amid stable demand.
• Silicone Rubber Production Cost Trend showed slight relief in March after earlier upward pressure.
• Silicone Rubber Demand Outlook stayed positive in transportation and aerospace sectors, though broad-based demand was tempered.
• The Silicone Rubber Price Forecast for Q2 2025 suggests potential for continued soft pricing unless cost pressures resurface or demand sharply rises.
Asia Pacific (APAC)
• The Silicone Rubber Price Index in China declined 3.56% quarter-on-quarter in Q1 2025.
• January started with slight price gains due to tightening supply and steady manufacturing activity.
• In February, post-Lunar New Year congestion, rising input costs, and currency/export challenges pushed prices up temporarily.
• March saw a correction driven by declining silicon metal prices as demand from solar and polysilicon sectors weakened.
• Silicone Rubber Spot Price adjusted moderately in March, reflecting cost relief despite firm downstream demand.
Why did the price of Silicone Rubber change in April 2025 in Asia?
Prices decreased by 3.2% owing to lower production costs and improved port operations, despite healthy end-user demand.
• Downstream sectors remained strong: automotive sales surged, construction rebounded, and aerospace demand remained robust.
• Silicone Rubber Production Cost Trend fell in March due to softening silicon metal prices and easing logistical disruptions.
• The Silicone Rubber Demand Outlook is stable with growth from key industries, though the market remains sensitive to cost and trade issues.
• The Silicone Rubber Price Forecast points to cautious optimism for Q2, assuming costs stay low and external disruptions are minimized.
Europe
• The Silicone Rubber Price Index in Europe recorded a 1.59% decrease quarter-on-quarter in Q1 2025.
• January experienced strength due to higher Silicon Metal prices, tighter availability, and strategic stocking by buyers.
• February saw a slowdown due to logistical challenges, including labor strikes in Northern European ports.
• March marked a price adjustment as sourcing costs from Chinese and European exporters dropped, and the Euro appreciated, improving import competitiveness.
• Silicone Rubber Spot Price dipped slightly by quarter-end, with weakening construction demand offsetting support from aerospace.
Why did the price of Silicone Rubber change in April 2025 in Europe?
Prices decreased by 1% due to reduced sourcing costs, economic caution, and lower construction sector activity.
• Silicone Rubber Production Cost Trend eased in March as input prices and transportation costs moderated.
• The Silicone Rubber Demand Outlook remains sluggish, particularly in construction and automotive, while aerospace offers some resilience.
• The Silicone Rubber Price Forecast suggests continued bearish sentiment unless demand rebounds or supply tightens unexpectedly.
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.
FAQs
1. What is the current price of silicone rubber?
As of June 2025, silicone rubber prices range between USD 9,299/MT FOB-USGC in the USA market additionally the European and the Asian market also witnessed a notable decrease in the price.
2. Who are the top silicone rubber producers globally?
Leading producers include Dow Silicones, Elkem, Wacker, and Shin-Etsu Chemical.
3. What affects the price of Silicone Rubber globally?
Prices are influenced by raw material costs (like silicon metal), energy prices, production capacity, and demand from automotive and electronics sectors.
