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.
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.
Frequently Asked Questions (FAQs):
1. What is the current price of Silicone Rubber?
During April 2025 the cost of Silicone Rubber was settled at USD 9359/MT on a FOB USGC in the North American region.
2. Why did Silicone Rubber prices decrease in April 2025?
Prices decreased globally due to easing production costs, better inventory levels, and reduced feedstock pressure across all major markets.
3. Who are the top Silicone Rubber producers in the United States, Europe, and APAC?
o United States: Dow Inc., Momentive
o Europe: Wacker Chemie AG (Germany), Elkem ASA (Norway)
o APAC: Shin-Etsu Chemical Co. (Japan), Dongjue Silicone (China)
4. What is the Silicone Rubber Demand Outlook for Q2 2025?
Demand is expected to be steady to moderate, with strength in aerospace and electronics, but headwinds in construction and automotive due to macroeconomic uncertainty.
