US Silicone Oil Prices Firm Amid Chinese Production Cuts

The US Silicone Oil market faced increased pressure in September due to tighter production controls in China. Chinese silicone producers maintained significant production cuts, around 50%, which reduced freely available material and supported a firmer regional market.

The impact became more visible as higher upstream costs and rising freight expenses increased the replacement cost of imported Silicone Oil. Chinese silicone monomer producers raised offers amid firmer methanol and silicon-metal costs, while Shanghai, Houston freight rates moved higher, adding to the landed cost of Asian-origin cargoes entering the US.

The combination of tighter Chinese production, higher monomer costs, and increased transpacific freight encouraged US buyers to remain cautious and focus procurement on immediate requirements. Demand across key downstream sectors provided a supportive backdrop for the market, with the automotive sector remaining an important consumption channel for Silicone Oil.