Global Silane Market Exhibits Bearish Trend at the Year Ending of 2022

Global Silane Market Exhibits Bearish Trend at the Year Ending of 2022

Global Silane Market Exhibits Bearish Trend at the Year Ending of 2022

  • 02-Jan-2023 3:15 PM
  • Journalist: Gabreilla Figueroa

On a FOB Shanghai basis, the data show that in China's domestic market in December 2022, the price of Silane for coating grade decreased by approximately 9%. The petrochemical industry chain continues to be affected by the high global macroeconomic inflation rate. China's orders are spread out, and the downstream paints and coatings industries have little demand. In the domestic market, downstream buyer enthusiasm waned. According to participant reports, the market's buying sentiment has been rigid due to low consumption rates and soft inquiries from domestic and international markets. The market sentiment for Silane and other petrochemicals has deteriorated, and the market is experiencing material delivery delays due to an increase in COVID-19 cases in China. In addition, Silane's price trend fell as a result of a decline in overseas inquiries.

As the holiday season approached, European market participants reported fewer inquiries from downstream Paints & Coating industries, lowering consumer confidence. The construction industry in Europe remained weak in December, resulting in Silane's market price decreases. The primary reasons for this price drop are the product's consistent supply from traders and ample availability in the regional market. Customers were reluctant to buy due to the possibility of a recession, which resulted in a decline in orders from the region's end-use industries. The product's widespread availability also worsened a downward price trend in the European market. As the European market continued to be constrained, traders focused on the commodity's weak demand outlook. The analyst claims that, on an FD Hamburg basis, the cost of the Silane coating grade that was settled in December depreciated by 8%.

Simultaneously, the U.S. Purchase Manager's Index (PMI) diminished from 47.7 points in November 2022 to 46.2 points in December 2022, showing a reduction in manufacturing activities and adding to a decrease in market buyer feeling throughout recent weeks. Additionally, the holiday season contributed to the low demand from downstream industries. Additionally, domestic Silane prices have decreased further due to abundant material supply and low demand from end users. Consequently, in December 2022, prices for coating grade Silane on a DDP Texas basis were declined by 8%.

The ChemAnalyst says that if demand from downstream industries rises, Silane's price may rise globally in the coming months.


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