Global Aluminosilicate Prices Turn Bearish in April 2024 Amidst Weak Demand
- 08-May-2024 3:59 PM
- Journalist: Xiang Hong
In April 2024, the global Aluminosilicate market experienced a decline, notably in the US, Europe, and Asia, primarily due to subdued demand from downstream glass, ceramics, and construction sector. The decrease in prices across these regions can be attributed to various factors affecting supply and demand dynamics in the industry. In the US and Asian markets, the drop in prices can be linked to weak demand from the construction sector, despite favorable weather conditions for building activities. Supply disruptions in major trade routes, along with geopolitical tensions and economic difficulties in European nations, have further suppressed Aluminosilicate demand. Additionally, seasonal factors and low demand from construction sectors have impacted Chinese Aluminosilicate demand. Consequently, these factors have contributed to a 2% decrease in the prices of Aluminosilicate FOB Texas (USA) and Aluminosilicate Powder FD Hamburg, while Chinese Aluminosilicate showed a decline of 3%.
Aluminosilicate prices in the USA unexpectedly fell following a slight increase in the preceding month. This decline can be partly ascribed to a reduction in construction expenditure, spurred by a resurgence in mortgage rates which has impeded homebuilding activities. Moreover, private construction initiatives experienced a decrease in spending in March, extending this downward trajectory into April. The decrease in the cost of imported materials from European markets, coupled with ample supplies, has further fueled the downward trend in Aluminosilicate prices in the US.
Similarly, the European Aluminosilicate market experienced a decline, mirroring the trend from the prior month. The depreciation in prices can be linked to subdued demand for Aluminosilicate, driven by slowing activities in the downstream construction sector amidst challenging economic circumstances. Despite ongoing supply-side constraints stemming from disruptions in the Red Sea and geopolitical tensions in the Middle East, inventory levels remained adequate, prompting market participants to reduce prices. Additionally, manufacturing activity across the Eurozone worsened its decline in April, further dampening demand for Aluminosilicate.
In the Asian market, specifically in China and Japan, Aluminosilicate prices experienced a decline, mainly influenced by weak demand from the construction sector, although the Indian market saw a slight increase. While projects began to resume towards the end of April in China, demand remained lower compared to the previous year, with project advancement slow and overall prices subdued. Factors such as funding limitations have constrained the commencement of new projects, prompting traders to be cautious in accepting new projects. Additionally, the price trend for the product is anticipated to continue its downward trajectory as demand is expected to decline across the global market.