High Input Cost Compelling Key Players to Raise Fumed Silica Prices Globally
- 10-Jun-2022 4:01 PM
- Journalist: Yage Kwon
A recent assessment by ChemAnalyst shows a marginal price increment for Fumed Silica for the global market during the first week of June 2022. The prime factor behind these price revisions was the high demand for the product from their respective market amidst inflationary pressure that has been compelling manufacturers to revise their product prices.
As per the data, a rise of around 1% was observed for Belgium and France by the first week of June 2022 after witnessing a significant hike of around 1.2% and 1.7%, respectively, during the previous month. As per the market insights, Fumed Silica prices have risen across the US market, owing to rising production costs amidst stable offtakes from the downstream rubber industry.
However, the recent price increment by Cabot has also impacted the global market sentiments, where around a 15% price increment has already been announced for the global market. Moreover, owing to this price increment, European market fundamentals have also changed, and traders have become more anxious about the procurement strategies.
On the other side, another significant price revision has been observed in the South Korean market, as the demand for the product is optimistic across the country. At the same time, the data shows an increment of around 1.7% during the first week of June, followed by 3% change noted during May 2022. As per the analysis, huge inflationary pressure has been making all commodities expensive across the domestic market of South Korea. The data shows South Korea’s inflation rate reached 14 years high.
Despite the fact that inflation in Japan is multiyear high, it is actually supporting the country’s economy. However, stringent lockdown restrictions in China have opportune Japanese players to fill the supply gap across the Asian market. Thus, as a consequent effect, a hike of around 2.3% was observed during May, which again soared by more than 1% by the end of the first week of June 2022.