Silicone Rubber Prices Surge in UK Amid Automotive Sales in March

London, UK: A hike of 14.3% was observed in Silicone Rubber prices in the United Kingdom during March 2023 on the back of increased downstream demand from the automotive industry. It was surprising to witness a significant rise in Silicone Rubber prices as its prices have been consistently declining since December 2022. According to the most recent figures released on Wednesday by the Society of Motor Manufacturers and Traders (SMMT), UK car sales increased to their highest level since before the COVID-19 outbreak in March. Hence, Q1 2023 statistics were the best after COVID, although they are still far below pre-pandemic levels, declining by 29.5% from the first quarter of 2019.

As supply chain conditions continued to improve, new passenger car registrations grew by 18.2% to 287,825 new units sold, marking the eighth month in a row that the sector saw improvements. As Silicone Rubber is primarily used in the automotive industry, any changes in the industry directly impact the inquiry for Silicone Rubber. Since the automotive sector has been showcasing clear signs of recovery, the production rate of automobiles has also been increasing, causing a surge in the procurement of Silicone Rubber in the region.

All automotive sale types saw an increase in registrations, driven by a segment that now accounts for 48.6% of the market thanks to 40,561 new vehicles and a big fleet owner growth of 40.9%. Battery Electric Vehicles (BEVs) reached a new monthly registration high, at 46,626 registrations, accounting for an 18.6% increase, while petrol-engine vehicles remained the most popular kind of car, accounting for 56.3% of new units. These data from the automotive industry have been strongly backing up the exponential surge in Silicone Rubber value in the UK market.

As per ChemAnalyst’s anticipations, “The Silicone Rubber prices are expected to surge further in the United Kingdom’s market as the second quarter of the year has started. As per seasonal trends and the data collected from last few years, the automotive industry showcases improved market performance in Q2, which will drive up the demand for Silicone Rubber, impacting its market value.”