Lackluster Demand is Pulling Down the Price of Silica in Europe

Since the threat of stagnation has escalated in the European market, it is observed that the price of several commodities has declined in major European countries. As per the latest assessment, Silica price in Europe has declined marginally due to the looming threat of demand dullness in the regional market.

ChemAnalyst market source revealed that Silica price has tumbled by around 1% and 2.5% in Germany and Belgium, respectively, during June 2022, regardless of the ongoing energy crisis in the regional market. As per the insights, a significant factor behind this unprecedented decline in demand from the domestic market. However, the producer index is still hovering at a high note, pressuring manufacturers' pockets.

European producers are also concerned with strengthening dollar value daily, which has narrowed exporters' margins while benefitting regional importers. European energy price has skyrocketed and reached a multiyear high value during the previous week coupled with rising labor expenses, which is also bothering regional manufacturers.

Market experts are also anxious about the global economic growth, as market activities are slowing down daily concerning their future demand fundamentals under the hood of high input costs. Some experts also anticipate that stagflation may soon hit the European market, making the situation worse for domestic consumers.

In the meantime, Silica prices remained unchanged in North America, where a similar threat is impending. However, post some harsh decisions taken by the US government, economic output has tumbled, and traders are taking advantage of the strengthening dollar value against many countries. Nevertheless, the demand is still slow in the US market.

As per the ChemAnalyst analysis, Silica price in Europe may not recover by the end of next month, as the demand may further slow down in the coming month. Furthermore, similar to the US market, Stagflation conditions may hit the European market, which will affect the producers' pockets.