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How is the weak U.S. Construction Sector Driving the Aluminosilicate Market

How is the weak U.S. Construction Sector Driving the Aluminosilicate Market

How is the weak U.S. Construction Sector Driving the Aluminosilicate Market

  • 29-Dec-2022 12:58 PM
  • Journalist: Gabreilla Figueroa

The Aluminosilicate industry player faces critical challenges, including shifting consumer preferences in the event of a predicted economic downturn and aligning industrial policies with growing environmental concerns. Despite considerable fluctuations in raw material Sodium Silicate costs caused by ongoing geopolitical tensions in the east European region and anticipated economic turbulences on the back of fluctuating feedstock crude oil prices in the American market, the Aluminosilicate price decreased. Year-end destocking and easing demand for glasses and cement on the back of the holiday season further contributed to decreasing price trend of Aluminosilicate in the U.S.

The chemical structure of an Aluminosilicate is made up of aluminum and silicon. The compound's ability to withhold high temperatures and corrosive materials has made it helpful for refractory materials in glass and ceramic manufacturing. Aluminosilicate export cargoes have decreased in the U.S. market primarily due to the weak performance of the construction sector caused by high inflation rates and severe covid-19 restrictions in importing countries in Europe, China, and Canada. This weak procuring attitude from the domestic and importing markets has been the primary reason for driving down the costs of Aluminosilicate in the U.S. from the start of the third quarter of 2022.

According to ChemAnalyst, the declining price trend of Aluminosilicate in the U.S. market is likely to prevail during the final week of 2022. At the start of 2023, restocking activities from the traders will likely lead to marginal rise hikes. As several sources suggest, the poor performance of the construction sector in the U.S. is likely to continue during the first quarter of 2023, and the demand from the end-use industries for Aluminosilicate is expected to remain poor during the first quarter of 2023. Despite insufficient demand from end-users and downstream sectors, commodity costs are anticipated to rise on the back of end-user restocking activities.

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