Silicone Rubber Price Trend and Forecast

Regional Price Overview

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

Silicone Rubber Price Trend for the Q1 of 2024

Asia

China's domestic market price of silicone rubber reflected a slight decrease during the end phase of the first quarter of 2024. The silicone rubber market showcased a weak decline majorly influenced by subdued trading activity and a halt in downstream demand for silicone rubber. However, in the early phase, the market received robust inquiries from both domestic and overseas players. However, the post-holiday season recovery of the market was slow, pushing the traders to lower their price quotations of silicone rubber in the later stages.

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Eventually, the end user sectors adopted a wait-and-see stance which further pushed the manufacturing units to slow down their production volumes in order to prevent the stacking of stockpiles of silicone rubber in the market. The traders, however, anticipate that this slowdown of silicone rubber prices is short-lived, and as the appetite of automotive and tire industries rises, so will the pricing patterns of silicone rubber.

Europe

The European silicone rubber market remained stable throughout the first quarter, and the end-quarter prices eventually closed at a slightly higher rate as compared to Q4 of 2023. The market largely endured the mixed demand from the automobile and construction sectors as it oscillated on a month-on-month basis. However, suppliers' subdued activities somehow contributed to this stable trend.

This stability was also dwindled by the rising geopolitical uncertainties. Additionally, the European Central Bank's decision to maintain a high-interest rate during its initial 2024 further raised the speculations of the traders and manufacturers regarding the rate of growth of inflation in the region. However, the overall dynamics of the market were supported by the rise in cost of production influenced by the rising prices of feedstock chemicals and crude oil throughout Q1 of 2024.

North America

In the first quarter of 2024, silicone rubber prices surged by a notable margin, standing true to the anticipated trajectory of the traders. This uptick was fueled by the resilience of the automobile sector, with notable growth in light vehicle sales and robust performance in the construction sector of North America.

The surge in the spending budget of the consumers also contributed to increased demand for commodities, impacting silicone rubber prices. However, the manufacturing sector was slow in catering to this escalating demand of in-house and international industries, which widened the gap between the supply and demand sectors of the market, favoring the rise in the silicone rubber price trend.

Analyst Insight

According to Procurement Resource, the price trend of Silicone Rubber is expected to endure the ongoing geopolitical challenges altering the global trading activities and rising cost of production fueled by surging prices of feedstock silicone, crude oil, and natural gas.

Silicone Rubber Price Trend for the October - December of 2023

Asia

Silicone Rubber is a silicone-based elastomer that is generously used in the downstream electrical and coating industries. Silicone Rubber is capaciously used to make seals, gaskets, and other insulating materials. So, generous demands from these consumption sectors drive the silicone rubber market positively.

During the last quarter of the year 2023, the Chinese silicone rubber market registered an increment of about 10%, where the monthly average prices shifted from about 2430 USD/MT in October’23 to around 2901 USD/MT in December’23. These market trend reflect the usability and surging demand for silicone elastomer during the concerned period. Overall, positive market trend were witnessed for the silicone rubber in the Asian regional markets.

Europe

The European silicone rubber market also followed the market behavior of its Asian counterpart as the prices tottered along an inclined trajectory here as well. Rising demands from the downstream electronics industry promoted positive market performance. Feedstock silicone prices also pushed the market trend in the same direction by increasing the upstream costs. Overall, rising market trend were observed in Q4’23.

North America

The North American market trend for silicone rubber were in alliance with the global rising patterns. The prices saw marginal inclinations during the three months of Q4’23. The freight disturbances caused by the Israel-Hamas war did affect international trade; however, domestic trade was relatively positive during the given period.

Analyst Insight

According to Procurement Resource, the Silicone Rubber price trend are expected to continue rising in the coming months as well. The inclined demand curve suggests a positive growth of the global silicone rubber market going forward.

Silicone Rubber Price Trend for the July-September of 2023

Asia

Silicone rubber prices experienced a positively wavering trend in the Asian market during the third quarter of the year 2023. Since the manufacturing industries in China finally started picking up after a long halt because of the COVID-19 pandemic restrictions, the market demands for silicone rubber also inclined from the downstream electronics, automotive, and aerospace manufacturing industries.

As a result, the silicone rubber price index registered increasing numbers throughout the third quarter. The Chinese silicone rubber market jumped by around 6% within the given span of three months as the monthly average prices varied from about 2510 USD/MT (FOB) in July to around 2685 USD/MT in September of 2023. Overall, positive market sentiments were experienced throughout the said time.

Europe

The European silicone rubber market run was relatively underwhelming as compared to its Asian counterpart during Q3’23. The downstream industries have still not completely recovered from the economic depression of last year. Further, the ongoing Russia and Ukraine war was still impacting the supply chains in some regard. So, despite some occasional upward movements the silicone rubber prices mostly exhibited downward fluctuations for the majority of the discussed time. Overall, mixed market sentiments were observed.

North America

Contrary to the global trend, the American silicone rubber market experienced a strong start at the beginning of the quarter in July. However, soon, the gloomy economic conditions started dominating, and the price trend became more plateaued in the following month, only to plunge further in September. These variations in the silicone rubber price graph were in alliance with the silicone rubber demand spectrum. The general market outlook was moderate throughout the said period.

Analyst Insight

According to Procurement Resource, the price trend for Silicone Rubber are expected to incline in the coming months, given the current market dynamics and rise in downstream demands.

Silicone Rubber Price Trend for the First Half of 2023

Asia

Silicone Rubber experienced mixed price trend in the Asian markets during the first half of 2023. A surge in downstream demands from automotive, aerospace, coating, sealing, etc. industries pushed the production facilities to enhance their manufacturing rates. With fresh high demands, the prices rose steadily in the first quarter, but as the inventories started rising, some temporary reverse fluctuations were also observed in the following quarter. But overall, market sentiment was supportive and positive. In the Chinese domestic market, prices inclined by almost 8% within the said time period.

Europe

In the European Silicone Rubber market, the price trend were almost mixed throughout the discussed period. Initially, at the beginning of the first quarter, the market was still struggling to recover from demand destruction; hence, the prices kept low. But as the Chinese manufacturing sectors started opening along with the opening of new trade routes and normalizing freight charges, the European Silicone Rubber market had some respite. The Silicone Rubber prices started inclining by the end of Q1, supported by consistent demand patterns, and witnessed upward swinging price trend throughout the rest of the said period.

North America

Silicone Rubber prices fluctuated throughout the said period in the North American markets. After starting strong in January 2023, prices hit a slump in the latter half of the first quarter because the collapse of two major US banks shook the industry. But recovery started quickly as the prices again set on an inclined trajectory at the beginning of the second quarter. Overall, the market experienced oscillations throughout the concerned period.

Analyst Insight

According to Procurement Resource, the prices for Silicone Rubber are giving positive and rising projections in the upcoming months. Some major aircraft deals between countries like India and America project high manufacturing activities in the coming months.

Procurement Resource provides latest prices of Silicone Rubber. 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.