Sodium Silicate Demand Remains Lacklustre in China Entering August 2022
- 02-Aug-2022 2:18 PM
- Journalist: Li Hua
Global economic recovery has been under threat since the concern over recession has emerged in multiple key economies. Since the pandemic has hit the China market, it has been struggling to gain momentum again. Further, no significant improvement in demand has appeared during the first week of August 2022 in China's domestic market.
The data shows a decline of around 1.7% entering August 2022, primarily driven by low domestic market demand and slowed the country's economic activity growth. As per the market sources, demand dynamics for the product have been dull in the domestic and international markets; thus, under the influence of stockpiled inventories, Sodium Silicate prices slipped in China.
Despite the country's economic slowdown, factory output contraction, and reduced GDP growth, policymakers are still keeping the zero covid policy. China's zero covid policy has been a major driving factor toward this severe economic crisis, as other nations have also imposed lockdowns but taken care of their economic activities.
The country's construction sector has been slow since the previous quarter; thus, the demand for glass-grade Sodium Silicate remained gloomy throughout the timeframe, leading to a straight and consistent fall in the product's prices. Additionally, the government data shows a decline in purchasing manager index during July, affecting global crude oil prices. Recently, global crude oil prices have witnessed a significant fall, and China remains one of the major factors behind this revision.
According to the ChemAnalyst analysis, Sodium Silicate prices are expected to remain dull throughout August 2022, as the country's economic activities might not change their pace. Furthermore, the government is also very supportive of its controversial zero covid policy, which is also not letting optimism rise in the country.