The US market for Fumed Silica, a critical material in construction, faced a price downturn in May xxxx. This decline has sent ripples through the construction sector and has the potential to impact the broader US economy. The primary reason behind the price drop was the sluggish performance of the downstream construction sector. Homebuilders across the country were facing consistent pressure, with demand for Fumed Silica remaining subdued which was largely attributed to the persistent rise in interest rates. The Federal Reserve&#xx;s interest rate hikes have made it more expensive for consumers to borrow money for new homes. This not only directly reduces consumer purchasing power but also creates a ripple effect. Rising interest rates foster general economic anxieties, leading to a wait-and-see approach from potential homebuyers. This overall lack of confidence further weakens the demand for Fumed Silica, a key component in construction materials.
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