Contrary to Global Market, Silica Prices Are Rising in India and Germany
- 09-Jun-2022 5:21 PM
- Journalist: Motoki Sasaki
Despite high market volatility, the worldwide Silica Sand market has remained relatively stable for a long time. Since the beginning of this year, demand for the commodity has been consistent, while supply disruption has remained a major source of concern for market participants.
According to a recent report by ChemAnalyst, global demand for Silica remained steady, but prices increased in high-income countries.
As per the ChemAnalyst data, the price of Silica has risen across the German market by the first week of June, taking pressure from rising domestic freight charges amidst stable offtakes from the glass industry. Since the Russia-Ukraine war has started, regional players have been in a dilemma to procure cargoes or not, as the demand fundamentals are still uncertain for many countries, including Germany. Thus, ChemAnalyst data shows an increment of around 1.7% in Germany by the first week of June, after maintaining prolonged stability during the past couple of months.
The Indian market has also absorbed some volatility from the global disturbance; thus, on the back of high inflationary pressure, which has been affecting domestic freight charges, a rise of around 2.7% was observed by the first Friday of June 2022. Previously, Indian players were trying not to raise their offers to sustain offtakes. However, for the month of June, they have been compelled to make positive revisions on spot purchases.
On the other side, ChemAnalyst has also gathered market insights from other countries like China, the USA, and Saudi Arabia, where the price for the product remained stable in the meantime. Nevertheless, these countries have recently witnessed a significant hike in their domestic Silica prices during April and May.
As per the ChemAnalyst analysis, Silica prices usually remain stable across the globe, while recent global market disturbance has injected some instability into the Silica market. Thus, it is anticipated that the price of Silica is likely to rise in the European market, especially in Belgium, in the coming month, while other countries are expected to maintain price stability.