The petrochemical market continues to face the heat of high inflation and mounting energy costs in the USA and Europe. According to the latest data, Silicone Oils Prices have continued their bullish run during September 2022 across the USA and European markets. Although, demand from the downstream sector has remained sluggish.

Prices of Silicone Oils have witnessed a rise of around 1.7% in the German market, supported by the high raw material Silicon metal prices. In contrast, rising input costs and high energy prices have further inflicted Silicone Oils prices. On the other hand, rising inflation has dampened the downstream demand. According to preliminary figures released by the Federal Statical Office (Destatis), inflation in Europe’s largest economy hit a record high of 7.9 % in August. Moreover, Germany is one of the Key exporters of Silicone Oils to other European countries and has struggled with the major unavailability of trucks and drivers amid AdBlue shortage and labor turmoil coupled with port congestion. According to the latest Kiel Trade indicator, port congestion continued to climb at Bremerhaven and Hamburg. In addition, container vessels are waiting in line to be loaded and empty, and the number of hourly delays has increased, resulting in the disruption of supply chains in the European market. Hence, as a result, Silicone Oils prices were offered at USD 4665/tonne during the same time frame.

Meanwhile, in the USA, similar market sentiments have been observed. High costs of production and surging feedstock Silicon metal costs and transportation costs have resulted in the Silicone Oils prices increasing in the domestic market. However, demand from the downstream automotive sector has remained bearish amid the impact of inflation and economic uncertainty on customer spending. On the supply front, the supply chain has been disrupted amidst port congestion and worsening logistics and supply activities in the US market. Consequently, prices of Silicone oil were quoted at USD 4615/Tonne during September-2022.

According to ChemAnalyst estimation, “prices of Silicone Oils will follow the upward momentum in the USA and European market. High raw material Silicon metal has further affected the price trend of Silicone Oils in the upcoming weeks. Meanwhile, demand from the downstream automotive and other allied industries will likely improve.”