- Global silicone prices moved upward during Q1’26, supported by tightening silicon metal supply, controlled operating rates, and improving downstream industrial demand across major regions.
- Feedstock pressure remained firm due to volatile silicon metal availability, higher electricity costs, and rising logistics expenses linked to Middle East disruptions and Strait of Hormuz congestion.
- Downstream demand improved gradually from electronics, automotive, sealants, coatings, construction, and semiconductor applications, though procurement activity remained cautious amid elevated freight volatility.
Asia
In Asia, silicone prices in China increased by approximately ~2.92% from January to March 2026, while prices in India rose by approximately ~0.19% during the same period. The regional market remained supported by tightening silicon metal supply and controlled plant operating rates after the Lunar New Year holidays. Supply conditions tightened further as producers maintained cautious operating rates despite improving downstream demand. Demand from electronics, construction sealants, industrial coatings, and automotive applications gradually recovered through March, supporting stronger restocking activity. In India, stable import demand and elevated freight expenses supported the market, while disruptions around the Strait of Hormuz increased insurance and shipping costs for imported materials and downstream silicone products.
Europe
European silicone markets remained firm during Q1’26 due to improving industrial and semiconductor-related demand. Regional buyers faced higher import costs because of rising freight charges and logistical disruptions linked to Middle East geopolitical tensions. Demand from electronics, specialty coatings, healthcare, and industrial applications supported procurement activity despite cautious purchasing behavior. Semiconductor-grade polysilicon and silicone demand improved steadily during the quarter, while constrained Asian exports and higher energy costs continued to support European market sentiment.
North America
In North America, silicone prices in the USA increased by approximately ~2.92% from January to March 2026. The regional market remained supported by stable downstream demand from EV components, electronics, adhesives, and construction-related applications. Elevated transportation and import costs resulting from global shipping disruptions increased landed material prices during the quarter. Market participants maintained conservative inventory strategies amid volatile international trade conditions, although recovering semiconductor and automotive activity provided steady consumption support. Supply-chain uncertainty and higher logistics costs linked to disruptions in global energy trade flows also contributed to firmer regional sentiment.