High Input Cost Pressuring US Sodium Silicate Producers in May 2022

Houston, USA: As per the recent assessment by ChemAnalyst, Sodium Silicate prices have traced an uptrend across the US market during the second half of May 2022. The major reasons that have been affecting the US market dynamics are consistent stiffness in crude oil value coupled with rising inflationary pressure on converters.

ChemAnalyst data shows a significant price increment during this month, where major producers have revised their offers for the product in the US market. As per the latest insights, a major player of Sodium Silicate in the US market has announced price revisions of around USD 32/MT effective from 5th May 2022. This price increment came after manufacturers saw consistent growth in raw material costs, Soda Ash, and Silica, owing to rising transportation and energy prices in the country.

Recently, gasoline price has reached a mark of USD 5.99 in some places in San Diego, USA. The prices of gasoline have been rising for a long time in the US market, pressuring market players to revise their product prices, as the transportation cost has been overriding their margins.

On the other side, rising Natural gas prices also remained a major factor behind these price increments, where the market players are still concerned over their input costs. The key reason behind this huge volatility in Natural gas value in the USA was the hot weather. The high temperature at some places like Texas has started reaching 37 to 38 degrees Celsius, pulling up the demand fundamentals for the product, as Natural gas is primarily used to produce electricity in the country.

Meanwhile, sanctions on Russia have already made the global market tight enough to keep on pressuring product prices in the global market. Moreover, the USA and EU are still considering another round of sanctions on Russia to build more pressure on the country.