Siloxanes Price Trend and Forecast

Siloxanes Regional Price Overview

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

Siloxanes Price Trend for the Second Half of 2023

Asia

The siloxane prices in the Asian markets were strained for the majority of the said period. In the early months of H2, the markets were largely driven by a lukewarm performance of the downstream sectors. Since the demands were so dull and the inventories were well capable of supporting the price trend didn’t have much room to grow.
 

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This continued till the middle of the fourth quarter as the market demands remained on the lower side and the supplies remained dominant. However, in the peak winter months, starting from November to December, siloxane production saw a constant decline, which prompted a reverse trend, and the prices started to stabilize following that. Overall, very mixed market sentiments were witnessed.

Europe

The European market behavior for siloxanes was not much different from its Asian counterpart. The prices were observed to be following a complex trajectory here as well. Quarter three was mostly bearish as the polymer and adhesive markets were witnessing a supply glut for the inventories. As time progressed, though some supply and demand equations improved, the prices still couldn’t grow much because of sufficient inventory support, which constantly created a downward pressure on the price trend. Conclusively, dull market sentiments were witnessed.

North America

The sluggishness in the global siloxane markets also affected the market prices in the North American region. To begin with, the siloxanes industry has been suffering in the region since the beginning of the year as the economic turbulences affected the purchasing capacities and the end user consumption; this continued in the second half of the year as well. Even though there was some positive product movement registered by the end of the said period, largely the upstream factors dominated and drove the price trend.

Analyst Insight

According to Procurement Resource, Siloxane price trends are not likely to improve anytime soon; given the current supply and demand situation, the market will take time to get better.
 

Siloxanes Price Trend for the First Half of 2023

Asia

The production and overall market sentiments of siloxanes are dependent on the market activities of the silane that is used as its feedstock. In the Asia Pacific countries, the prices of siloxanes initially inclined in the first quarter with the help of positive demand from the downstream industries and lower rates of imports from the international markets.

However, the trend was soon reversed as the coating industries performed poorly in the second quarter of 2023. Further, the number of new orders from domestic as well as international players fell consistently, which further aided the downward journey of siloxane prices.

Europe

In the first quarter, the European countries experienced a slowdown in the economy that hampered the growth of overall markets. This further caused the demand from the downstream sectors to decline and the interest rates to hike. The ill effects of the poor performance of the economy persisted in the second quarter, too, as due to soaring inflation and the deteriorating conditions of the market, the prices of siloxanes took a dip. The most significant impact of the economic turmoil was seen in the construction and coating industries, which struggled to keep the prices of siloxanes afloat.

North America

In both the first and second quarter of 2023, the prices of siloxanes adopted a bearish trajectory. The demand and number of new orders from the downstream industries contracted significantly during the first two quarters, which had an adverse effect on the prices of siloxanes. In addition to this, not only domestic but overseas buyers also seemed to hesitate in placing huge numbers of orders, ultimately resulting in the downfall of the siloxanes price trend.

Analyst Insight

According to Procurement Resource, the price trend of Siloxanes is expected to move southwards due poor rates of procurement from the downstream sectors.
 

Siloxanes Price Trend for the Second Half of 2022

Asia

The Asian Pacific region saw a decline in siloxane prices as the demand from the downstream industries and overseas contributors decreased in the said period. The declining trend in the prices of siloxane was also majorly due to the oversupply of the product in the market. The domestic consumption in the region further remained low due to disruptions caused by covid regulations in the region. Ample supply, declining demand, and uncertainties in the market led to a decline in the price trend of siloxanes such as dimethylcyclosiloxane.

Europe

The European region also saw a declining price trend of siloxanes and their derivatives. The region experienced the ripple effects of the ongoing Russia-Ukraine war, and thus the prices took a soaring hit. The high inflationary rates and low energy prices kept the prices in check during the fourth quarter, however, towards the end month the prices of siloxanes increased due to the sudden increase in demand from the international market and surge in the energy prices contrary to the previous trend.

North America

The North American market of siloxanes witnessed a low demand from the downstream industries and thus, the level of inventories surged in the region. The production of siloxanes took a major hit in the region as the producers opted for supply cuts to control the rising levels of stockpiles. A significant cut in the profit margins and disruptions in the demand dynamics of the region further fueled the dip in the prices of siloxanes and their derivatives. The pessimistic momentum of the market, firm demand, and rising interest rates, all contributed negatively to the price trend of the siloxane market.

Analyst Insight

According to Procurement Resource, the price trend for siloxanes are expected to decline in the upcoming quarter. The decline will be majorly due to weak economic conditions, decreased demand from both the domestic and international sectors, and a rise in inventories.
 

Siloxanes Price Trend For the First Half of 2022

At the beginning of the said year, the prices of dimethylcyclosiloxane (DMC) averaged 23900 RMB/MT. However, with the complex economic and political conditions that ensued in the Russia-Ukraine war, the price of siloxanes surged globally. In China due to the low inventories and resurgence of covid-19, the prices of DMC inclined. The high quotations by the manufacturers were supported by the downstream demand for stocking DMC causing the prices of DMC to average 37000-39500 RMB/MT in March 2022.

However, soon the prices began to decline because of the expensive logistics and trade bottlenecks. The cautious wait-and-see buyers’ attitude amid the rising speculations of recession and dwindling demand cause the prices of DMC to decline. The price trend for siloxanes recorded a downward trend for the second quarter with prices of DMC averaging 21200 RMB/MT in June 2022.

Procurement Resource provides latest prices of Siloxanes. 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.