Silicone Emulsion Price Trend and Forecast

Silicone Emulsion Regional Price Overview

Get the latest insights on price movement and trend analysis of Silicone Emulsion in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Silicone Emulsion Price Trend for the Second Half of 2023

Asia

During the third and fourth quarters of 2023, the silicone emulsion sector in Asia experienced fluctuating prices due to limited interest from end-user industries. These price variations were particularly severe in the third quarter.
 

Silicone Emulsion Price Chart

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The automotive sector's consumption remained moderate, while production output significantly exceeded demand. Additionally, a decrease in raw material prices, driven by limited procurement, reduced overall production costs and silicone emulsion prices. However, toward the end of the third quarter and throughout most of the fourth quarter, the market stabilized. This stabilization was attributed to reduced production activities and increased demand from the automotive industry following improvements in the semiconductor supply chain.

Europe

In Europe, the silicone emulsion price trend remained stagnant during the early part of the third quarter, followed by a sharp decline in the last month. This drop was primarily due to a significant reduction in demand from downstream industries and lower production costs. The market took a considerable time to recover, only showing positive signs in the fourth quarter. By the beginning of Q4 2023, raw material costs and demand from end-user industries began to rise, but their impact was not felt until the year's final month.

North America

In North America, the third quarter of 2023 saw the silicone emulsion price trend impacted by significant challenges in the downstream rubber industries. There was a notable imbalance between demand and supply, leading to challenging trading conditions. The feedstock industries also failed to provide support during this period, contributing to the decline in silicone emulsion prices. However, the market dynamics shifted in the fourth quarter, with reduced production output alleviating stockpiles and increased demand, allowing silicone emulsion prices to rise.

Analyst Insight

According to Procurement Resource, the price of Silicone Emulsion is estimated to see an uptrend as the traders anticipate a shortage of raw materials while the industrial applications of silicone emulsions are assumed to expand.
 

Silicone Emulsion Price Trend for the First Half of 2023

Asia

Silicone Emulsions are directly sourced from silicones, so the price trend closely follow its feedstock silicone prices. Silicone Emulsion prices kept fluctuating throughout the said period in the Asian market. Offtakes from the downstream cosmetics, lubricants, and plastics industries primarily drove the price trend. Opening up of Chinese manufacturing units after a long time post-Covid lockdown also helped; the Chinese market revival supported the Silicone Emulsion market positively.

Prices started strong with fresh demands from downstream markets, and new supplies started flooding in. However, the excess supplies started overflowing the inventories, and the prices were pushed down as a ripple effect. The market continued its downhill journey well into the second quarter, but the stable demands kept the market afloat. Some rebound in Silicone Emulsion market dynamics was observed at the end of the second quarter as the prices started rising marginally because inventories were being consumed and demands started observing a stable momentum.

Europe

The European market was suffering from demand destruction for a long time. So, the prices were plunging low because of the high economic inflation in the region. But as the energy and transportation charges started normalizing, the Silicone Emulsion prices also started improving. Being dependent on Asian imports, the Asian imports got better access once the trade normalized, affecting the price trend of silicone emulsion positively.

North America

The North American Silicone Emulsion market almost mirrored the Asian Silicone Emulsion market. Prices started strong but soon turned south and continued declining for the remaining period. High levels of inventories amid bearish demands led to such feeble market behavior.

Analyst insight

According to Procurement Resource, Silicone Emulsion prices are expected to continue fluctuating since the high inventory stocks and the volatile downstream demands continue to influence the concerned market.
 

Silicone Emulsion Price Trend for the Second Half of 2022

Asia Pacific

The Asian market saw an upward trend in the prices of silicone emulsion during the third quarter of 2022. The incline was majorly attributed to the high-cost pressure and stable demand from the end-user such as automotive and related industries. The Chinese market witnessed limited stock availability due to the disruption of supply chain dynamics owing to the resurgence of covid cases and thus an increase in trade restrictions. In the fourth quarter, the manufacturers witnessed a labour shortage along with weak demand from the automotive, cosmetics, and pharmaceutical industries, which negatively impacted the price trend for silicone emulsion.

Europe

The European market saw a decline in prices as the demand for this commodity plunged. The high cost of domestic production, raw materials, and operation resulted in the decline. The ripple effects of the recession in the region were seen in the price fluctuations of the commodity. Port congestion, vessel bunching, and labour strike disrupted the supply chain, further contributing to the negative growth of the prices owing to demand destruction. The supply chain dynamics, however, improved a little in the fourth quarter but the bearish demand from the automotive, cosmetics, and pharmaceutical industries continued the decline in prices.

North America

The North American region witnessed an opposite trend as compared to the other two regions. The prices surged in the third quarter as production increased in the regional area. The end-user markets gave a stable demand for the commodity amid high inflation rates. The supply dynamics were, however, disrupted due to the logistics constraints, port congestion, and labour shortage in the region.  This all resulted in the price trend for silicone emulsion to shift towards the lower end of the scale.

Analyst Insight

The prices of Silicone emulsion are likely to decrease during the coming months given the low demand in the end-user industry market and the rise in inflation rates globally.
 

Silicone Emulsion Price Trend For the First Half of 2022

The prices of Silicone Emulsion registered a fluctuating trend in the Asian market. At the beginning of the year, the prices of silicon emulsion averaged 7926.70 FOB USD/MT in China.

The prices slowly declined owing to the reduced factory production after the Lunar New Year celebrations coupled with the resurgence of covid-19 cases. The prices went lowest around April averaging 7602.25 FOB USD/MT. However, the prices of silicon emulsion soon made a comeback after the removal of covid restrictions and healthy downstream demand. The prices of silicon emulsion averaged 8506.93 FOB USD/MT in June 2022.

In India, the prices of silicon emulsion remained inflated during the first 4/5 months of the said year owing to the raised quotations of feedstock DMC (dimethylcyclosiloxane) and market supply uncertainties.

With the manufacturers passing down the raised inputs costs to the consumers and high-cost inflation the phenomenon of demand destruction took place in the Indian domestic market. The prices of silicon emulsion declined averaging 4359.40 CIF USD/MT in June 2022.

Procurement Resource provides latest prices of Silicone Emulsion. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.