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Electricity Crisis Impacts the AluminoSilicate Market in South Africa
Electricity Crisis Impacts the AluminoSilicate Market in South Africa

Electricity Crisis Impacts the AluminoSilicate Market in South Africa

  • 13-Apr-2023 11:16 AM
  • Journalist: Patrick Knight

The cost of Aluminosilicate observed a marginal inclined trend in March 2023 due to the high energy prices in the market. Costs are going up a lot due to the ongoing energy crisis, which is also making it hard for construction to start up smoothly. The rising cost of electricity has resulted in increased construction material costs and other commodity prices, including AluminoSilicate in the South African market. On the other hand, the construction industry was hampered by the high energy crisis in the country. Overall, the South African economy was unfavorable in the region.

This sector's demand for construction materials, including Aluminosilicate, was marginally improved. The construction industry suffered a lot in the South African market due to the sluggish economic environment during March 2023.

Electricity is frequently used in the construction sector to run equipment and lights. As a result, load shedding has thrown off work schedules, prompted delays, pushed contractors to rearrange their projects, and hurt electrical equipment by causing surges in power and voltage.

Also, the cost of construction has gone up due to the rise in electricity prices, and the supply and maintenance of generators can raise expenses and contribute to more pollution. These factors add up to dramatically greater expenses and decreased productivity of AluminoSilicate.

In addition, firms throughout value chains, such as suppliers, subcontractors, and manufacturers, who all contribute vital inputs to the industry, have been hampered by the unpredictability and unreliability of power brought on by load shedding has reduced investor confidence.

According to ChemAnalyst price tracking, the price of AluminoSilicate was settled at USD 910/MT FOB Durban in March 2023, with a monthly inclination of 1%. The high cost of energy influenced the AluminoSilicate market's upward price trend in the African market.

The consumption of AluminoSilicate is likely to decline in the upcoming weeks if the electricity crisis is intact in the country. The demand for AluminoSilicate was also reduced in the end-use sectors due to the slump in the construction industry. The experts say that the construction sector is paying a high price for persistently significant load shedding, which has severely constrained its growth prospects and job creation.

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