For the Quarter Ending December 2022
In the North American market, falling demand remained a major matter of distress during Q4 2022, as producers were extremely concerned over their inventory levels and future production cuts. In the USA, demand for Aluminosilicate declined from the downstream paints and coating industry due to pessimistic market conditions. Furthermore, declined raw material Sodium Silicate cost (-3.4%) also opportune manufacturers to negatively revise their offers in order to sustain offtakes from the niche buyers. As per the data, the US market noted a decline of around 9.4% in Sodium Aluminosilicate prices during the fourth quarter of 2022.
The Asian market has witnessed a steep decline in demand from the downstream sectors while availability remained ample enough to satisfy all the needs. As per the data, Aluminosilicate prices fell drastically (-9.2%) in China during Q4 2022 due to escalated pandemic-related uncertainties in the country. Demand for the product from the downstream construction sector plunged due to prolonged dullness in purchases exacerbated by the sudden escalation in COVID cases in the country. The effect of this price fall was observed in the prices of Aluminosilicate in the Indian market, as despite comparably better offtakes, cheaper offtakes led to a decline of a similar extent during the quarter.
A drastic change in demand for Aluminosilicate has been observed in Germany during this quarter, owing to rising tension over recessionary pressure looming after the escalation of Russia Ukraine war. The escalated anxiousness about for economic slowdown kept on injecting qualms in the domestic Aluminosilicate market, as traders were worried about existing inventories. Furthermore, cheaper imports remained another major driving factor behind this price trend, leading to a steep fall of around 10.5% within the quarter. Additionally, the threat of another energy crisis was avoided successfully, protecting the market from another unnecessary rise in raw material prices.
For the Quarter Ending September 2022
In the North American market, the Aluminosilicate price declined during the second half of the quarter, owing to slowed demand from the domestic market amidst ample product availability in the country. As per the market sources, prices rose initially during July and later plummeted during August and September under the influence of rising clouds of uncertainties and slowing economic activities in the country. Initially, the inflation rate in the USA was rising uncontrollably, and the government started taking initiatives to cool down the inflationary pressure from consumers, which eventually slowed down the economy. Aluminosilicate prices hovered around USD 1807/MT on a FOB basis.
Under the influence of wavering offtakes and muted demand from the domestic as well as international market, Sodium Aluminosilicate prices plunged sharply during the third quarter of 2022. In China, despite ease from pandemic-related uncertainties during the second half of the quarter, economic activities were struggling to gain traction in the market. Meanwhile, in India, prices followed a similar price trajectory throughout the quarter, where a huge fall in prices was observed for the Indian market despite optimistic scenarios rising from the coming festive season in the country. In China, the Sodium Aluminosilicate price was assessed at around USD 1350/MT during September.
Aluminosilicate prices kept on tracing a downtrend throughout the quarter on the back of low demand fundamentals from the downstream buyers coupled with cheaper imports and domestic trade activities in the region. As per the insights, inflationary pressure remained a major driving factor behind any positive price revision for any commodity, while some products declined due to negligible queries from the downstream market, including Aluminosilicate, during Q3 2022. Additionally, rising energy prices were also an issue for domestic players, and traders were getting cheaper cargo from other markets. Sodium Aluminosilicate price assessed around USD 1706/MT for September 2022.