Despite Lackluster Demand, the Energy Crisis Fumes Sodium Silicate Prices in Europe
- 08-Sep-2022 4:32 PM
- Journalist: Harold Finch
A recent analysis shows that Sodium Silicate prices have rebounded again after witnessing a consistent decline for around two months. The data shows that European, as well as Asian markets are about to show price buoyancy for several commodities during the month of September 2022. However, the factors driving this variable pricing sentiment differ regionally.
According to data, during the first week of September 2022, Sodium Silicate prices hiked by around 1.8%, 3%, and 3.3% in the Netherlands, France, and Germany, respectively. Despite the fact that Sodium Silicate’s demand has been low in end-use Pulp & Paper, construction, and automotive sectors during the past couple of months, prices significantly increased during this month. The threat of recession has been slowly gripping the global market, which has also affected the European region.
Rising energy prices have increased the cost of production, which increased the cost of construction raw materials like concrete and bricks etc., and compelled domestic contractors to opt for the wait-and-see approach. Consequently, demand for Sodium Silicate tumbled during the past few months.
However, demand fundamentals for Sodium Silicate are still lackluster, but manufacturers could not resist themselves to revise their offers to tackle high production costs. Additionally, the upcoming winter season and the recent announcement by Russia to curb supply via the Nord Stream pipeline have also affected the market sentiments and induced pressure to utilize energy more wisely.
As per the ChemAnalyst analysis, European Sodium Silicate prices may not decline by the end of this month, as the current market scenario will not change anytime soon in the region. Furthermore, natural gas scarcity may threaten the European market further, and significant recovery is likely in the region’s construction sector. However, the threat of high natural gas value may not let the price remain dull for longer, and manufacturers may not negatively revise their offers for the global market.