Asia
In the second half of 2024, the Asian silicone DMC market—especially in China—saw significant price swings. In Q3, prices initially moved with some fluctuation. A temporary lift came in September when a few Chinese monomer plants attempted to boost prices, briefly stirring market sentiment. However, this rally was short-lived.
By Q4, DMC prices dropped sharply due to persistent oversupply and sluggish domestic demand. The commissioning of substantial new production capacity earlier in the year kept inventories high, while the downstream industries remained in a seasonal low.
Export demand offered some cushion, but not enough to reverse the downward momentum. By December, market competition intensified, with frequent price undercutting as sellers scrambled to clear stock. The Silicone (DMC) spot prices settled at around 1778 USD/MT in December’24 in the Chinese market.
Europe
European DMC prices followed a relatively steady but softening trend through H2’24. The region did not experience the same degree of oversupply as Asia, but the effects of global price pressure—especially from China’s exports—began to weigh heavily. Local demand stayed modest, particularly from the construction and automotive sectors.
While some industries like renewable energy and electronics maintained stable consumption, it wasn’t enough to absorb imports from Asia at competitive rates. As a result, European producers were forced to lower prices in Q4 to remain competitive, though the rate of decline was more gradual compared to China.
North America
In North America, DMC prices in H2’24 showed moderate stability through Q3, supported by better downstream demand in sectors like home appliances and EVs. However, by Q4, the market softened.
Competitive pricing from imported Asian products began to seep into the region, especially as Chinese suppliers sought to offload excess inventory. Domestic producers faced mounting pressure to adjust their pricing strategies. Although some attempted production cuts, overall supply still outpaced demand, nudging prices downward towards the end of the year.