US Stagflation Condition Affecting Construction Raw Material Prices in the Country
- 28-Jun-2022 6:36 PM
- Journalist: Jacob Kutchner
Houston USA: The US construction sector has been facing a threat of looming recession in the country, which has been bothering market players. As per the market experts, the USA is stepping forward to a stagflation condition, where prices of several raw materials are rising despite low demand from the domestic market. ChemAnalyst has analyzed the prices of construction chemicals for the USA, where most of the chemicals are tracing an uptrend despite low offtakes from the downstream niche buyers.
The data shows that the price of construction-related raw materials like Sodium Lignosulphonate and primary Silicates have risen in the US market during June 2022. As per the data, Sodium Lignosulphonate prices have increased by 2% in the domestic market, owing to prolonged inflationary pressure on converters.
On the other side, Silicates like Zirconium Silicate and Sodium Silicate have showcased an uptrend in the US market, following similar market dynamics as other raw materials. As per the recent assessment, the rising raw material cost has also affected the pricing dynamics of cement in the country.
The producer price index for the US market reached its all-time high during May, which later projected another increment for July. However, the US federal bank took some tough decisions to curb the burden of high inflation on consumers. However, this decision might not have benefited producers, as it has slowed down the country's economic activities.
According to ChemAnalyst, construction chemical prices are expected to remain buoyant in the coming month in the US market, as the current market sentiments will not vanish from the country soon. The recent decision to raise the interest rate has already concerned market players, and the market activities are predicted to slow down soon. However, prices may stop escalating with this pace, as the inflation curve is predicted to be flattened soon.