Falling Consumptions in the Downstream Sector Suppresses the Silane Market
Falling Consumptions in the Downstream Sector Suppresses the Silane Market

Falling Consumptions in the Downstream Sector Suppresses the Silane Market

  • 08-May-2023 4:16 PM
  • Journalist: Robert Hume

In April 2023, a downward trend in Silane prices was seen in Europe as a result of sluggish demand in the downstream construction industry. One of the biggest markets for Silane is the construction sector, where it is utilized as a bonding agent in sealants, adhesives, and coatings.

According to the most recent Purchasing Manager's Index (PMI) survey, Germany's construction industry was still firmly in contraction in April 2023, with the rate of decline in overall industrial activity marginally accelerating because of a housing market downturn that was getting worse.

At the start of the second quarter of 2023, the construction sector's demand for Silane was still being held back by high building costs, tightening financial conditions, and overall economic uncertainty. Construction firms in the Eurozone cut back on production in response to the persistent decline in demand. In April 2023, the Eurozone's new orders fell for the thirteenth consecutive month. With the sharpest decline in five months, Germany led to a national decline in new work intakes.

In April 2023, German constructors reduced their capacity for hiring people and decreased purchases of building supplies, including Silane, in the market. Although the drop in buying levels has slowed marginally since March, it was the thirteenth consecutive month that a decline in buying levels was seen.

At the beginning of the second quarter, there was less demand for Silane in the construction industry and products, which helped relieve pressure on construction supply chains.

German construction companies continued to be negative about the prognosis for activity over the upcoming 12 months due to the difficulties caused by high pricing, rising interest rates, and a lack of investment enthusiasm.

As per ChemAnalyst, the cost of Silane coating grade in Germany was settled at USD 3272/MT on an FD Hamburg basis, and it was depreciated by 1.6% during April 2023.

In 2023, the majority of the Petrochemicals market, including Silane, will see a slowdown, with development prospects hindered by sluggish investment growth, high prices for other commodity construction supplies, and rising energy costs.

Related News

European Silane Market witnessed Price Instability as Oscillations Define Feb 2024 Trends
  • 08-Mar-2024 2:10 PM
  • Journalist: Sasha Fernandes
Europe Silane Prices Turmoil due to Weak Demand and Supply Snarl
  • 09-Feb-2024 3:22 PM
  • Journalist: Henry Locke
Fall in Global Silane Prices Amid Low Demand at the End of 2023
  • 11-Jan-2024 2:32 PM
  • Journalist: Li Hua
Global Silane Market Witnesses Bleak Demand at the End of Q2 2023
  • 24-Jul-2023 11:27 AM
  • Journalist: Emilia Jackson