Fumed Silica Prices Surge in the US as Construction Boom Heats Up

The US market for Fumed Silica has undergone a decent uptick in March 2024 after a period of sluggishness. The prices have taken a sharp turn upwards driven by a surge in demand from the downstream construction industry. This newfound bullish trend reflected a global phenomenon, with construction firms across the US, both domestic and international, ramping up their Fumed Silica consumption. The residential homebuilding, commercial projects, and civil engineering works have all witnessed a significant uptick in activity during March which resulted in heightened demand for Fumed Silica, a critical component in various construction materials like paints, coatings, and sealants.

The US Fumed Silica market has experienced a surge in demand during March due to a booming construction industry. This, combined with the traditional spring peak in home buying, has pushed prices upward. While there were some concerns regarding a slowdown in manufacturing and its potential impact on supply chains, the overall trend suggested a robust market to settle at USD 6150/MT FOB New York Fumed Silica with a hike of 2.5% during March 2024. Contributing further to this rise was the traditional peak season for US home buying, which falls in the spring. Homebuilders have anticipated strong demand and have accelerated production to meet it. This translates directly into a significant increase in Fumed Silica consumption. While inflationary pressures remain a concern in some sectors, the overall economic outlook for the US appears to be improving. However, a note of caution emerges from the manufacturing sector. The Purchasing Managers' Index (PMI) for manufacturing has shown a slowdown. This, coupled with a decline in the PMI for non-manufacturing industries has had a marginal impact on supply chain activities for Fumed Silica during this period.

As per ChemAnalyst, the Fumed Silica market in the USA is expected to remain bullish amidst the heightened demand and persistent logistical issues. The collapse of the Francis Scott Key Bridge, which created disruptions in the maritime industry could delay the delivery times. As a ripple effect, the closure of the Port of Baltimore could affect commerce and supply chains for a variety of items, including Fumed Silica. Furthermore, the shutdown of the Baltimore port is expected to enhance activity levels in ports on the West Coast, particularly in Los Angeles and Long Beach, causing ripple effects in related industries such as trucking, warehousing, and rail networks. Due to increasing logistical obstacles and supply chain constraints, this closure is likely to raise product costs, particularly those for Fumed Silica.