How global rise in raw material cost affecting Silicates and construction sector

Rising raw material cost in the global market has been a matter of concern for different industries, and the construction sector is one of them. As per the latest assessment by ChemAnalyst, the global construction sector has been witnessing steep price escalation for a time, owing to trade disruption coupled with increased freight costs across major trade routes. One of the key raw materials, i.e., Silica price, has risen effectively in a small span of time across the global market.

As per the ChemAnalyst data, under the influence of high raw material costs, Silicates prices have been rising across the global market. Sodium Silicate is one of the major products in the list of ChemAnalyst database, which shows a hike of around 1%, 2.7%, 2.3%, and 2.5% in India, Japan, South Korea, and China, respectively, during February, March timeframe. As per the analysis, these increments were supported by consistent increments in raw materials Silica and Soda Ash across the global market. Demand fundamentals for the product were heard to be maintaining stability in the meantime, while inflationary pressure remained a prime factor behind these revisions. On the other hand, construction businesses have heard the potential threat to their profit margins, restraining them from procuring more cargoes.

The European construction sector has also witnessed similar sentiments, where the demand from the regional market remained firm, and manufacturers had to bear the burden of high raw material costs. ChemAnalyst data shows a rise of more than 5% in Germany and France for Sodium Silicate, in the Feb-March timeframe, primarily driven by high raw material costs amidst input cost pressure induced by Russia Ukraine war. Russia Ukraine conflict is getting worse day by day; where latest insights revealed that another phase of the war has started, which may further disrupt regional market dynamics by influencing trading activities across the European market. Meanwhile, the USA has been facing a steep rise in natural gas value, concerning market players about further increment in input cost.

Thus, As per the assessment, it is expected that Sodium Silicate prices may further rise in the near term under the current market scenario, where the sentiments induced after the Russia-Ukraine war is not going to vanish anytime soon from the global market.