High Energy Prices Repel Downstream Consumers from Buying Zirconium Silicate in Europe
- 12-Sep-2022 3:55 PM
- Journalist: Harold Finch
Recent analysis shows another significant price drop in Zirconium Silicate for the global market during the first week of September 2022. According to the data, global Zirconium Silicate prices have been falling for the past three months, while low demand remained the major driving factor behind these consistent price decrements.
As per the data, a 1.4% price fall has been observed for the German market entering September 2022, owing to a steep fall in demand from the domestic market. For Europe, rising energy values have been a foremost matter of concern, which has eventually affected the production activities in the region. European glass manufacturers have recently reduced production rates due to an exorbitant rise in production cost amidst moderate demand fundamentals. Raw material zircon sand has lost its luster in the market, leading to a consistent fall in its prices and eventually affecting the downstream derivatives like Zirconium Silicate.
Similarly, Poland and Spain have acted correspondingly, where the demand kept diminishing, and polish manufacturers tried to maintain price stability but failed. Zirconium Silicate prices have also fallen by around 0.8% in both countries, and low offtakes remained the key driving factor.
On the other side, a market source based in China revealed that due to the decline of zircon sand prices, Chinese producers could provide discounts on current spot purchases. However, the country’s domestic consumption has been low since the pandemic wave hit the country. Additionally, despite the government having eased out pandemic-related restrictions, the Zirconium Silicate market is still under qualms, and the country’s zero covid policy is the reason. As per the data, the Zirconium Silicate price dropped by around 1% in China, owing to weakening upstream values.
According to the ChemAnalyst analysis, global Zirconium Silicate prices are likely to keep tracing the current market trend until the end of September 2022, as the demand is not going to rebound enough to change its dynamics. Furthermore, the ongoing energy crisis is going to be worse only in Europe, as the current availability may not be able to satisfy the coming winter demand.