Global Silicone Rubber Prices Hold Firm Amidst Diverse Market Demand in Jan 2024

The price of the Silicone Rubber witnessed a stable trend in the global market in January 2024. This stability is majorly attributed to the mixed demand witnessed from the global Automobile and the Construction sector market. The muted bidding from the suppliers has resulted into the stable trend observed in the price of the Silicone Rubber this month.

In the European market, specifically in the Netherlands, Silicone Rubber prices have remained stable at 9500 USD/MT DDP-Rotterdam this month. The steady pricing is attributed to factors such as a consistent unemployment rate, positive economic sentiment, and optimistic employment expectations in the Euro area and the EU, despite existing geopolitical uncertainties. The European Central Bank's decision to maintain a high-interest rate of 4.5% during its initial 2024 meeting aims to address inflation concerns and potential economic challenges. In January, the Western Europe new car selling rate slightly decreased to 12 million units/year, with 901k vehicle registrations, yet exhibited a notable year-on-year growth of 10.7%, mainly driven by robust expansion in Germany and other major West European countries. The supplier's decision to uphold ex-quotation prices has played a significant role in sustaining the stability of Silicone Rubber prices this month.

In the United States market, Silicone Rubber prices remained stable at 9300 USD/MT FOB-USGC in January, despite an increase in the cost of the feedstock, Silicon Metal. The downstream market experienced a 5.6% month-on-month decrease in U.S. vehicle sales, totaling 15.0 million units on an annualized basis. However, unadjusted sales volumes were 2.8% higher than the previous year, with a daily selling rate (DSR) of 43,042 over 25 days, marking the first year-on-year DSR decline in sixteen months. Notably, passenger vehicle sales grew by 1.4% year-on-year, while light-truck sales increased by 3.1%. Although the construction sector is exhibiting a positive trend, there has been no significant change in the demand and supply ratio of Silicone Rubber in the US market this month, contributing to its price stability. These factors collectively play a crucial role in shaping the demand landscape for Silicone Rubber in the United States.

According to ChemAnalyst projections, Silicone Rubber prices are anticipated to experience a bullish trend in the upcoming sessions. This optimistic outlook is primarily linked to the positive momentum in downstream market demand, particularly from the automobile and construction sectors in major economies. The increased consumption of Silicone Rubber in these sectors is expected to contribute to the upward trajectory of its prices. Suppliers have also observed a recent accumulation trend, and the ongoing uptrend in prices is predicted to continue, serving as a crucial factor in driving the global market price for Silicone Rubber.