Global LSR Prices Surge in February Amid Higher Sourcing Costs and Supply Chain Disruptions
Global LSR Prices Surge in February Amid Higher Sourcing Costs and Supply Chain Disruptions

Global LSR Prices Surge in February Amid Higher Sourcing Costs and Supply Chain Disruptions

  • 12-Mar-2025 9:00 PM
  • Journalist: Timothy Greene

The price of the Liquid Silicone Rubber (LSR) in the global market marked a notable increase in Feb. This increase in the LSR price is majorly attributed to the increased contract selling price from the manufacturers which has been passed on to the end users. However the demand from the downstream market remains mixed and the suppliers are optimistic for the recovery in the demand due to which accumulation LSR has been done on a needy basis.

The South Korean LSR market has experienced a notable price increase by 0.6% in Feb, driven by higher import prices from key exporters in the Asian market, particularly China. Market participants have been facing rise in the operational cost which has impacted the overall pricing dynamics. Additionally on the demand side, Construction and the semiconductor sector witnessed an underperformance which is offset by the outperformance in the Automobile sector which continued to support the LSR consumption from the downstream market. This mixed demand outlook, combined with the higher sourcing costs, has contributed to the rise in LSR prices in the South Korean market.

Statistics Korea reported 8332.7 MT of Silicones import in Jan 2025 marking a 18.2% decrease from a month ago. Suppliers have been modifying their import volumes to align with shifting demand, while some are exploring alternative sources to mitigate potential supply chain risks.

In the European market the LSR price witnessed an uptrend is Feb 2025. This increase in the LSR price is primarily linked with the logistical delays and the labour strikes which have exacerbated shipping delays, further challenging supply efficiency. However the demand from the downstream Automobile and the Construction sector remains subdued which is been offset by the outperformance in the Aerospace sector. However, economic uncertainty lingers, with Germany’s industrial recovery still on shaky ground. In an effort to stimulate growth, the ECB recently cut interest rates, hoping to boost consumption. At the same time, supply chain disruptions and moderate demand growth in key sectors have put upward pressure on LSR prices, making the market outlook cautiously optimistic.

As per the ChemAnalyst anticipation the LSR price is expected to showcase bullishness in the upcoming sessions. This projection of bullishness in the LSR price is primarily linked with the anticipation of an increase in the contract selling price from the manufacturers. However, market participants remain optimistic about a demand recovery, leading to prolonged buildup activities in the LSR market. This trend is expected to influence pricing dynamics in the near term.

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