Contrary to European Market, China’s Fumed Silica Prices Tumbled in July 2022
- 12-Jul-2022 4:03 PM
- Journalist: Jung Hoon
Since the global key players like Cabot have announced the price increment for Fumed Silica for the global market, prices have been tracing an uptrend, especially in Europe. A steep price elevation was observed in Europe during the first week of July 2022, owing to stable offtakes from the domestic market amidst stable to firm offtakes from the downstream sectors.
As per the market sources of ChemAnalyst, Fumed silica price has witnessed a price revision in major European countries like Germany and France, bolstered by rising input expenses. Furthermore, according to data, around 5.4% and 3.8% hike is observed for Fumed Silica in Germany and France, respectively, during this month. The prime factor that has affected the overall pricing dynamics for the product is stable demand for the product from the domestic market and the steep rise in raw material cost, which compelled key players to revise their offers for future purchases.
As per the market sources, European traders have also started raising their product prices, as they are getting expensive cargoes from the regional producers.
On the other side, the Chinese market showcased a negative market sentiment for the product due to low offtakes from the domestic niche buyers. The data shows a decline of around 1% for Fumed Silica during July’s first week, owing to depressed demand dynamics for the product from domestic and regional markets. In addition, ample product availability and economic slowdown also compelled domestic players to make negative price revisions in Fumed Silica for the international market.
As per the ChemAnalyst analysis, Fumed Silica prices are likely to keep tracing the uptrend for the coming month, as the demand for the product will likely remain unchanged under the current market scenario. However, the recent economic slowdown in the international market may affect the pricing dynamics of several commodities, including Fumed Silica in Europe. On the other hand, the Chinese market will not show firmness in demand any time soon, as despite the country having recovered from pandemic-related uncertainties, economic activities will take more time to recover fully.