Recovering Demand Pulling Up GGBFS Prices in China and Germany
- 13-Jun-2022 3:08 PM
- Journalist: Bob Duffler
Significant hikes in multiple price indices have been pointing toward a steep rise in inflation across the global market, as the ongoing market disturbances are raising concerns over future trade activities. As per the recent assessment by ChemAnalyst, GGBFS (Ground Granulated Blast Furnace Slag) price has showcased a significant price revision during May and June 2022, which usually stays stable.
ChemAnalyst data shows a significant hike of around 4% in the price of GGBFS in Germany entering June 2022, owing to stable demand from the domestic market amidst rising input costs for the product. However, as per the data, this price hike was primarily driven by rising input costs due to ongoing market volatility, while it was observed that prices declined by 2% during May 2022.
According to the data released by Federal Statistical Office Germany, the consumer price index reached an all-time high of 116.2 points in April 2022, primarily driven by high Natural gas prices in the country. However, the production index declined in the meantime; nevertheless, it was anticipated that it would go up by the end of May.
Meanwhile, the ongoing pandemic crisis in China has been a major concern for the Asian market, as the devastation caused by the zero covid policy led to a sharp decline in manufacturing activities in the country. ChemAnalyst data shows a rise of around 2% for GGBFS during the first week of June, which might get adjusted later.
Data released by the Chinese government shows that the PMI (Purchasing Manager Index) has rebounded effectively during May, as the optimism induced after declining new pandemic cases in the country supported manufacturing industries. In addition, it also indicates that the raw material inventory index has risen, supporting this significant pickup in the price of GGBFS in the country.
As per the assessment, an additional surge in pandemic cases across major provinces of China is looming another threat of devastation in the country, which will eventually affect the Asian market dynamics.