Inflation Pleas Potassium Silicate Prices to Escalate Further in Asia

Rising raw material cost amidst the ongoing crisis in Ukraine has impacted the overall demand pricing dynamics for Potassium Silicate across the European market during the past few months. Meanwhile, China has also impacted the overall market dynamics for Asia. As per the recent assessment by ChemAnalyst, a steep rise in the price of Potassium Silicate has been observed across multiple countries, bolstered by stable offtakes from the domestic market amidst inadequate supplies.

India, which is currently the only market not facing any market disturbance like Europe or China, witnessed the steepest hike of around 8.7% during May 2022 owing to supply disturbance from key exporting countries. The Indian market has been going through seasonal offtakes from the domestic market, while demand from the construction sector has been high since the summer season has arrived.

Trusted market sources revealed that traders are not offering a discount on purchases, as they are also cautious about the availability. Therefore, India is projecting another significant hike of around 5% during June.

The Chinese market has been a centre of discussion since another wave of pandemics knocked on the country's door. Demand for the product declined from the domestic market, while several construction material producers reduced their output due to lower offtakes. Despite all these odds, the Potassium Silicate price has risen by 6.7% in May while projected for another hike of around 2.5% during June 2022. Supply disruption across the domestic market, rising coal prices, and reduced natural gas imports remained Key driving factors behind this price hike in the country.

The other Key Asian economy, South Korea, has been battling substantial inflationary pressure supported by high input cot amidst stable demand fundamentals from the domestic market. As per the insights, the producer price index has risen effectively, which led to a steep rise in consumer inflation, which is currently 13 years high. ChemAnalyst data shows a hike of around 3.3% in Potassium Silicate during the first week of June, followed by a steep rise of around 6.7% during the previous month.

As per the latest assessment by ChemAnalyst, it is predicted that the Potassium Silicate price will likely continue tracing an uptrend by the end of this month, owing to ongoing market scenarios. As China has started recovering from the pandemic, consumption of the product will also increase in the construction sector.