For the Quarter Ending September 2024
North America
In Q3 2024, the Dimethylcyclosiloxane (DMC) market in North America faced a notable decline in prices, particularly in the USA. Several factors contributed to this downward trend, most prominently weak demand from downstream industries such as paints and coatings, which significantly affected pricing. Additionally, reduced feedstock costs, particularly for Methanol, lowered production expenses, exerting further downward pressure on DMC prices.
The market also dealt with supply chain disruptions that complicated timely deliveries, complicating the pricing environment. In the U.S., this negative pricing trend was evident throughout the quarter, as seasonal dynamics and overall market conditions correlated with the price decrease. The quarter-on-quarter change of -1.71% highlighted the persistent decline, and prices were considerably lower than in the same quarter last year.
The quarter concluded with DMC priced at USD 3,050/MT CPT USGC, marking a challenging period for the market. Overall, these conditions reflected ongoing pressures that contributed to a sustained downward trajectory in DMC pricing across the North American region.
APAC
In Q3 2024, the Dimethylcyclosiloxane (DMC) market in the APAC region experienced a notable price increase, primarily driven by developments in China. Prices rose steadily throughout the quarter, influenced by strong demand from downstream industries, such as automotive and electronics, coupled with supply constraints and rising production costs. Disruptions, including plant shutdowns and logistical challenges, further exacerbated the supply tightness, contributing to the upward pricing pressure. China, in particular, saw the most significant price fluctuations, reflecting the overall trend across the region, with synchronized pricing movements among countries such as Japan and South Korea. Despite some seasonal variations, the market maintained a positive pricing environment, recording an 8% increase compared to the same quarter last year, while prices remained stable from the previous quarter. By the quarter's end, DMC was priced at USD 1,950/MT FOB Shanghai, indicating a considerable rise from earlier in the quarter. This performance underscores the upward momentum within the DMC market in the APAC region, driven by strong demand, ongoing supply-side challenges, and the overall positive market sentiment.
Europe
In Q3 2024, Dimethylcyclosiloxane (DMC) prices in the European region experienced a notable decline, largely due to decreased demand from essential downstream sectors, including silicone rubber, adhesives, and coatings. The market faced significant challenges as key industries like automotive, construction, and aerospace showed lackluster performance, resulting in subdued overall market conditions. Additionally, global economic uncertainties and falling industrial activity further impacted the pricing environment for DMC. Germany reported the most substantial price changes, with a -1.04% decrease from the previous quarter and an even more pronounced -8% drop between the first and second halves of the quarter. By the end of the quarter, DMC prices in Germany settled at USD 3,240/MT FD Hamburg, reflecting the prevailing negative pricing trend. Despite moderate supply levels and some demand from specific downstream sectors, the overall market sentiment remained bearish, with challenging conditions contributing to the downward trajectory in prices. This combination of factors underscores the difficulties faced in the DMC market across Europe during this period.
For the Quarter Ending June 2024
North America
The Dimethylcyclosiloxane (DMC) market in North America experienced a notable upward price trend during the second half of Q2. However, the rise in the production rate among the enterprises remains the key reason that declined the prices during April 2024 amid supply exceeding the demand.
The quarter saw significant supply constraints and an increase in demand across various industries, which collectively exerted upward pressure on DMC prices during May 2024. The manufacturing sector exhibited robust performance indicators, bolstered by favorable economic conditions and a resurgence in new orders, particularly from the automotive and silicone rubber sectors. The rise in U.S. auto sales and steady demand from the beauty and personal care industries further amplified the positive market sentiment during June 2024.
Focusing on the USA, the market dynamics were particularly bullish. This quarter witnessed an impressive 7% price increase from the previous quarter in 2024, underpinned by supply limitations and heightened demand fundamentals. Despite certain logistical challenges, including the aftermath of the Baltimore bridge collapse, and some manufacturing units implementing production cuts to manage inventories, the market continued to remain bullish.
APAC
In Q2 2024, Dimethylcyclosiloxane (DMC) pricing in the APAC region experienced significant fluctuations from bearishness toward bullishness. Previously, a sharp rise in supply during April-May 2024 was caused by the high domestic monomer running rates, ongoing release of new capacity, and some addition of a new capacity. Domestic silicone DMC production in China increased 11.38% from April to 207,500 MT in May. The overall output from January to May of 2024 was 959,400 MT, a 14.88% year-over-year increase. May's output increased amidst production from freshly commissioned capacity and domestic enterprises did not shut down or perform maintenance throughout the month which certainly outpaced the demand. However, the quarter was marked by a notable increase in purchasing activities during June 2024, driven by high demand from downstream enterprises, particularly in the automotive and silicone rubber sectors. Additionally, increased importing petrochemical charges and elevated trading costs further contributed to the rising price trend due to regional suppliers' expectations of price hikes. The correlation between seasonally driven demand spikes and the uptick in prices was evident, reflecting a robust recovery in downstream markets. Compared to the same quarter last year, the overall trend showcased a marked improvement in market conditions.
Europe
In Q2 2024, the Dimethylcyclosiloxane (DMC) market in Europe experienced a significant upward trajectory in pricing. Even with reduced production rates during the turnaround season, the German DMC players' supply still exceeds their demand amidst a weak buying attitude on the market which declined the price trend during April 2024.
However, increased upstream costs and power surcharges contributed to elevated production expenses, exerting upward pressure on DMC prices during May 2024. The strengthening of purchasing fundamentals, with enterprises actively inquiring and increasing spot purchases, further buoyed the market. Additionally, long transit times and rising freight rates resulted in logistical challenges, tightening supply and further propelling prices upward. Focusing exclusively on Germany, which witnessed the most pronounced price fluctuations, the DMC market exhibited a robust bullish trend. The interplay of seasonality and heightened purchasing activities, combined with constrained inventories, led to an 11% price increase between the first and second halves of the quarter. Market dynamics were further influenced by the early arrival of the Ocean peak season and disruptions in the Red Sea, exacerbating congestion and equipment shortages.
For the Quarter Ending March 2024
North America
In Q1 2024, the Dimethylcyclosiloxane (DMC) pricing dynamics in the North America region were influenced by a range of factors beyond the conventional top three. Overall, the market situation was bullish, with low supply and high demand.
The supply of DMC was inadequate, leading to limited constraints on output and a decrease in production levels. However, there were no reported plant shutdowns during this period. The demand for DMC, particularly from the downstream Silicone Rubber and Polymer industries, remained high, contributing to the bullish trend.
The market in the USA experienced the most pronounced price fluctuations, with stable to slightly lower prices in January, followed by a increase in February and a rebound in March. The overall trend was influenced by factors such as limited supply, brisk demand, and trading fundamentals. The year-over-year price change in Q1 2024 was 10% higher compared to the same quarter last year, highlighting the volatility in the market. The price for DMC CPT USGC in the USA at the end of the quarter was USD 3230/MT.
APAC
In Q1 2024, prices of DMC in Shanghai-based factories continue to remain elevated compared to pre-holiday levels. Leading DMC plants refrained from releasing offers, prompting other suppliers to either increase prices or remain silent. In response to this situation, downstream buyers rushed to make purchases, driving up prices of silicon products. The increase in Silicone DMC prices can be attributed to two main factors. Firstly, downstream enterprises with a strong inclination towards production displayed robust demand. Secondly, adverse weather conditions caused delays in arrivals, leading to supply constraints. The price surge in silicone oil was fueled by low inventory levels and high costs. Additionally, the delayed start-up of new capacity has raised concerns about exacerbating oversupply risks. In China, the silicone DMC market has witnessed a general uptick. A prominent manufacturer in Xinjiang resumed trading, influencing other DMC companies that had halted orders to potentially raise prices to match those of the major manufacturer in Xinjiang. Furthermore, the raw material inventory acquired in the initial stages has started to deplete, prompting downstream companies to enter the market to replenish their stocks and facilitate transactions. Domestic DMC companies currently hold less inventory, and pre-settled orders are yet to be delivered.
Europe
During Q1 2024, the European Dimethylcyclosiloxane (DMC) market experienced a bullish price trend, with upward price trajectory observed in Germany. While the top three factors influencing pricing were supply, demand, and plant shutdowns, a nuanced analysis reveals additional insights. The overall trend in Germany showcased a brisk market situation, driven by a limited supply of DMC and strong demand from the downstream Liquid Silicone Rubber and personal care sectors. This resulted in higher price trend, with increase in trading and spot price discussions. However, the year-over-year price change for the same quarter last year indicated a 4% increase. The final quarter's price for DMC FD Hamburg in Germany stood at USD 3340/MT, indicating a relatively higher price compared to the previous months. The market witnessed strong demand driven by robust buying interest from converters and distributors, particularly for the production of Silicone Elastomers. This surge in demand coincided with a supply crunch in the vicinity, as limited trades were unable to keep pace with the rise in fresh orders.
For the Quarter Ending December 2023
North America
When compared with the previous quarter, the market fundamentals of Dimethylcyclosiloxane in the USA showcased an upward price trajectory in the wake of increase in market trading fundamentals and low-level product inventories among the significant manufacturing units. In Dec, the price of Dimethylcyclosiloxane in the USA was observed to be 3130/ton FOB USGC.
The cost support was given by robust spot market trades, higher production expenses, and an increase in market trade from the USA to other North American region. Distributors are nevertheless supported using domestic stocks and growing demand. Due to more solid offers, tighter supply for November 2023, and better buying demand, the FOB USGC DMC price increased. Because it was difficult for downstream players to sustain margin, buying was primarily done on the immediate basis.
For the downstream market, there was a sign of demand improvement and sources were heard strong views given brisken market from personal care and Silicone Elastomer market. With improving DMC demand in the domestic market prices show a slight upward trajectory.
Asia Pacific region
In the Asia Pacific region, the market trading fundamentals remain bearish in the affect of continuous decline in the market trend and low market offers from the buyer’s end. The supply of Silicone DMC in the region remains adequate with feeble demand recovery from the downstream enterprises. Limited prices support this month was attributed by gradual increase in exports from China to India. Chinese suppliers had declined their quotations in the hope to secure their profit margin and revenue. In December 2023, the downturn in the Silicone DMC market intensified, coinciding with a consumption off-season in the downstream sector of DMC. Persistent weakness in market demand prompted a gradual increase in on-site bidding activity. The overall transaction price approached a lower range, leading to a gradual narrowing of the price gap between high and low points in the market. Meanwhile, in the feedstock market, methanol prices showed an upward trend, but the lack of robust market trades negatively impacted the fundamentals of market trading.
Europe
The European DMC market witnessed a sluggish market purchase with deteriorating trading fundamentals from the downstream ventures. Higher production costs and an increase in market trade from Germany to other European regions provided the cost support with healthy spot market trades. Utilization of domestic inventories and rising demand continue to provide support for distributors. The FOB Hamburg DMC price surged, considering tighter supplies for Q4 2023 and improved buying demand amid an increase in firm offers. Buying was mainly on a need basis, as downstream players found it difficult to maintain margin. For the downstream market, there is a sign of demand improvement and sources were heard strong views about Nov 2023 outlook given brisken market from personal care and Silicone Elastomer market. With improving DMC demand in the domestic market prices show a slight upward trajectory. In Dec, the price of Dimethylcyclosiloxane in Germany was observed to be USD 3230/ton FOB Hamburg. Commodity demand remained strong, and after the October gain, producers began to tighten their holdings. The export market has also improved, with buyers being cautious in their negotiations with suppliers.
