For the Quarter Ending March 2024
North America
During the first quarter of 2024, pricing dynamics for Aluminosilicate in North America, especially in the USA, saw an increase, propelled by advancements in construction activities and various external factors affecting the market during this period.
The business landscape in the US is indicating a significant upswing in overall economic activity as the year commences. This expansion is particularly evident in the service sector, while downstream manufacturers are grappling with challenges related to reduced production due to escalating supply issues. Despite these manufacturing hurdles, there is a widespread improvement in demand conditions across the downstream glass and paint sectors.
Companies are reporting robust growth in new orders for both goods and services, fostering an optimistic outlook and bolstering confidence in future business prospects. The growth in construction activities and positive business sentiment are contributing to the upward trend of the product in the US market. By mid-quarter, manufacturing experienced a renewed increase in production, benefiting from enhanced supply chains following adverse weather conditions in January. Moreover, shippers observed a decrease in disruptions caused by low water levels in the Panama Canal, easing pressure on supply chains. Consequently, the price of Aluminosilicate FOB Texas surged by 1.3% by the quarter's end.
APAC
Throughout Q1 2024, the Aluminosilicate market in the APAC region saw fluctuating pricing dynamics, mostly declining but stabilizing in March. China, as a major market in the region, played a significant role in these price fluctuations. It experienced a bearish trend characterized by high supply and low demand, contributing to surplus supply issues. Weak demand from the downstream construction industry, coupled with slow activity in domestic and overseas markets, further exacerbated this situation. Disruptions in supply routes through the Red Sea and Panama Canal regions led to stockpiling in regional ports, intensifying the surplus supply condition. The decline in demand can be attributed to various factors, including subdued investor and consumer confidence, decreasing new home prices, and stricter government regulations on debt growth, all contributing to a slowdown in the construction sector during the quarter. This slowdown notably impacted the overall output of the construction industry, resulting in decreased demand for Aluminosilicate and associated products, consequently leading to a decline in prices. However, there were expectations of a demand rebound post-holidays in March, which could potentially lead to a price escalation. Overall, the Aluminosilicate market in the APAC region experienced a bearish trend in Q1 2024, with prices declining compared to the same quarter last year and the last quarter of 2023.
Europe
In the first quarter of 2024, the Aluminosilicate market in Europe underwent pricing fluctuations, with Germany experiencing the most significant impact. Despite consistently low consumption and an economic slowdown, the supply of Aluminosilicate remained low, contributing to a generally bearish market situation. Demand for the product was subdued, primarily due to reduced demand from downstream industries such as construction, glass, and paints. The challenging economic conditions in Germany, including a slowdown in construction activity and ongoing weakness in the housing sector, further dampened demand. Moreover, geopolitical tensions in the Middle East, disruptions in the supply chain caused by reduced water levels in the Panama Canal, and transportation disruptions in the Red Sea due to an attack by Houthi rebels, all affected market conditions and supply. There were no reported plant shutdowns during this period. Analyzing pricing dynamics in Germany, there was a significant price decline in January, followed by a slight increase in February, and another drop of 1.3% in March. These fluctuations can be attributed to economic challenges, low demand, and ample stock availability in the market.
MEA
In Q1 2024, the Aluminosilicate market in the Middle East and Africa (MEA) region witnessed varied pricing dynamics, primarily experiencing depreciation after stable prices in January, followed by declines of about 2% and 1% in February and March, respectively. In South Africa, the pricing trend was influenced by various factors, including subdued demand from downstream industries such as glass, and paints, all of which were affected by a slowdown in construction activities. This downturn was exacerbated by a challenging trade environment reported by the South African Chamber of Commerce and Industry (Sacci), characterized by negative trade conditions persisting since October 2023. The prevailing economic uncertainty led to cautious spending behavior among businesses, impacting the demand for industrial materials like Aluminosilicate. Despite supply disruptions in the Red Sea, product availability remained adequate, indicating a mismatch between supply and demand dynamics in the market during this period. However, prices in Q1 2024 experienced a decline in South Africa compared to the same quarter last year and a decrease in prices from the last quarter of 2023.
For the Quarter Ending December 2023
North America
The North American Aluminosilicate market experienced fluctuations in the fourth quarter of 2023 as the prices initially decreased, rebounded in November, but ultimately declined again by the end of the quarter. Several factors affected the market and prices during this period.
Firstly, the market experienced a slight decline in prices due to reduced demand from the domestic market. This was influenced by economic uncertainty and weak client demand, leading to destocking activities by merchants. Secondly, there was ample supply in the market, which met the domestic requirements without disruptions from the supply chain. Lastly, the US non-manufacturing PMI indicated an improvement in the construction sector, leading to increased demand for Aluminosilicate. However, the overall demand remained moderate, and declined as the year concluded. There were no reported plant shutdowns during this period. Focusing on the US market, which experienced the highest impact on prices, the Aluminosilicate prices decreased slightly in the fourth quarter of 2023. The decline in orders from the domestic market and reduced export orders contributed to this price trend.
Additionally, the challenging economic conditions in critical export markets subdued demand, leading to a decline in new export orders. Despite these challenges, manufacturers remained optimistic about future output, and the rate of decline in order books significantly moderated. The quarter ending price of Sodium Aluminosilicate in the USA was USD 1340/MT FOB Texas.
APAC
The Aluminosilicate market in the APAC region faced challenges during the fourth quarter of 2023, with a subsequent rebound towards the end of the period. Initially, the market experienced a decline in prices attributed to weak demand and an oversupply of the product. The construction sector, a key consumer of Aluminosilicate, witnessed a slowdown, resulting in decreased new orders and reduced overall activity. This, coupled with a slowdown in infrastructure spending, further impacted the market, leading to price declines and an accumulation of stock. Despite marginal improvements in factory activities, the overall demand remained low. However, a positive shift occurred in China by the conclusion of the quarter, driven by firm market demand. China's efforts to rejuvenate its struggling real estate sector and support post-pandemic economic recovery contributed to increased demand for Aluminosilicate, especially in construction, as well as its applications in paint and glass. Anticipated gains are expected in the early months of 2024. In China, where the most significant price changes occurred, there was limited availability of Aluminosilicate, resulting in price increases. Nevertheless, the overall demand in the region remained subdued due to a housing market slowdown and reduced infrastructure spending. The quarter-ending price for Aluminosilicate in China was recorded at USD 860/MT FOB Shandong.
Europe
The Aluminosilicate market in Europe witnessed a challenging fourth quarter of 2023, with several factors impacting prices and market dynamics. Firstly, weak demand from the construction sector, particularly in Germany, played a significant role in the market downturn. The construction industry in Germany experienced a sharp decline, leading to reduced activity and lower demand for building materials, including Aluminosilicate. Additionally, the uncertain economic environment and high interest rates further dampened demand, causing a decline in new orders and delayed investments. Furthermore, the supply of Aluminosilicate remained moderate throughout the quarter. While there were no reported plant shutdowns, manufacturers adjusted their workforce numbers to align with reduced demand. This resulted in a decrease in factory employment but helped maintain a sufficient supply in the market. In Germany, the quarter ended with a price of USD 940/MT for Sodium Aluminosilicate FD Hamburg. This price represents the challenges faced by the market throughout the quarter due to weak demand and uncertain economic conditions.
MEA
In the fourth quarter of 2023, the Aluminosilicate market in Middle Eastern countries underwent notable fluctuations characterized by an initial price decline, a rebound in November, and a subsequent decline by the quarter's conclusion. Various factors contributed to these market dynamics. One of the primary reasons was the constrained supply of Aluminosilicate, resulting from port delays and disruptions. Inflationary pressures and escalating fuel prices further compounded the situation, leading to increased costs and prolonged delivery times. Another influential aspect was the diminished demand for Aluminosilicate, both domestically and from overseas markets. Companies across the region reported reduced sales and a decline in new orders, contributing to the overall decrease in prices. Concurrently, the South African Aluminosilicate market witnessed substantial changes in prices. At the close of the quarter, the latest price for Sodium Aluminosilicate in South Africa stood at USD 820/MT, FOB Durban. This pricing reflected the complex interplay of supply chain challenges, economic factors, and market demand, encapsulating dynamics of the Aluminosilicate market in South Africa during this specified period illuminates the complex interplay of supply chain challenges, economic factors, and shifting market demands.
For the Quarter Ending September 2023
North America
The Aluminosilicate market in North America witnessed a mixed performance during the third quarter of 2023. In the United States, prices declined by 4% in the first month and further by 2% in the last month, primarily due to a decrease in orders from the domestic market. Simultaneously, U.S. manufacturers reported a continued deterioration in their overall operating conditions during the same period. Despite these challenges, there were some positive signs. The manufacturing sector experienced a slowdown in the rate of contraction, driven by several factors. Notably, there was a resurgence in output, accompanied by increased hiring and expanded capacity. These factors contributed to a more optimistic outlook. The decline in new orders, although still present, was relatively modest. The manufacturing sector faced subdued demand both domestically and internationally, but it managed to reduce the rate of decline in its operating conditions. However, a further decrease in new orders prompted firms to curtail their purchasing activities despite improvements in input delivery times. Efforts to minimize safety stocks and enhance cash flow management led to a significant contraction in stocks of finished goods within the manufacturing sector. In the second month of the quarter, Aluminosilicate prices in the U.S. increased by around 6%. This was primarily driven by elevated labor costs and inflation in construction materials. Price increases were slightly more prevalent compared to the previous month. Domestic market merchants engaged in restocking activities in anticipation of future demand conditions, offering a ray of optimism in the region's Aluminosilicate market.
Asia-Pacific
The Asia-Pacific Aluminosilicate market's performance during the third quarter of 2023 was characterized by a mixed trend. In the first month, prices experienced a notable 6.2% decline, and this trend persisted with a 7.5% drop in the last month. The primary driver behind this downward trajectory was the state of India's manufacturing sector, which exhibited slight indications of deceleration. This deceleration was primarily attributed to a more modest rise in new orders, which consequently led to moderated production growth. Manufacturers in the Indian market responded by offering competitive prices due to the ample availability of materials domestically. As the quarter progressed, the data for September revealed a decrease in Aluminosilicate product costs following an expansion in the previous month. Simultaneously, employment rates in the sector increased while backlogs decreased gradually. Manufacturing purchases experienced a slight decline when compared to the previous month, yet they continued to exhibit strength in the market. However, in the second month of this quarter, the price of Aluminosilicate remained stable in the Chinese market. This stability was primarily driven by China's non-manufacturing sector, which continued to expand. The recovery of services and the strength of the construction industry contributed to improved overall business conditions.
Europe
The European Aluminosilicate market displayed a mixed trend during the third quarter of 2023. The price of the product decreased by approximately 10.5% in the first month and further by 4.5% in the last month. The primary driver behind this decline was attributed to a drop in new orders, largely due to the impact of high-interest rates in the German market, which had a ripple effect on the broader European market. Both input costs and output charges recorded further declines, indicating that manufacturers not only faced reduced demand but also encountered lower costs for production inputs. This translated into decreased prices for the final products. Furthermore, there was a significant drop in backlogs of work at the end of the third quarter, leading manufacturers to adjust their staffing capacity and resulting in a decrease in factory employment. The intense competition among manufacturers for new business opportunities led to a fourth consecutive monthly decrease in average factory gate charges. Although the rate of decline was slightly faster compared to August, it indicated that manufacturers were willing to reduce their prices to secure contracts and remain competitive in the market. In the second month of this quarter, the price of the product increased by around 3%. This increase was primarily driven by a modest improvement in procurement activities. Manufacturers reported that customers from various end-use industries adopted a more cautious approach, purchasing only when needed.
For the Quarter Ending June 2023
North America
Throughout the second quarter of 2023, the cost of AluminoSilicate saw a downward trend in the US market due to bearish construction activities in the region. The merchants continued to work through their existing stocks in the domestic market. The demand for the product did not rise due to the sufficient availability to meet the requirements of the downstream construction industry. Cost pressures continued to dwindle across the manufacturing sector as suppliers sought to boost their sales and offer reduced prices. The decline in the health of the sector was the most severe in 2023 to date and stemmed from a marked reduction in new orders. Further, the Manufacturing Purchasers Index holding points below threshold limits for the entire second quarter of 2023 indicates the deteriorating of economic activities and subdued the construction sector in the US. Production growth was frequently linked to a larger workforce and rapid input deliveries, which enabled businesses to catch up on work delays—the supplier's delivery times improved further and, to the greatest extent, were on record in the US market.
APAC
In the second quarter of 2023, the market for AluminoSilicate remained bearish in China due to the weak performance of the downstream construction industry. In China, the manufacturing PMI fell below its threshold limits, indicating a decline in production and poor performance from the construction industries. The pace of market recovery slowed down in the second quarter of 2023, and there was not enough momentum for prices to rise. Overall, global trading activities stagnated in Q2, and the demand for the product did not increase from domestic and overseas markets. However, weak exports and confidence continue to hinder private-sector investment. Further, industrial production has experienced a slowdown due to subdued exports in China. The manufacturers set lower prices in the market since there was sufficient material in the Chinese market to satisfy the needs of the downstream industry. Particularly, with limited support for the building industry, the marginal investment in real estate has declined and is still bottoming out in the short term.
Europe
In the second quarter of 2023, the AluminoSilicate market remained sluggish in Germany due to the bearish construction activities' performance around the country. Business conditions across the German construction sector took a turn for the worse in the second quarter of 2023, with building companies recording faster declines in both activity and new orders amid a backdrop of rising interest rates, customer uncertainty, and wider inflationary pressures. June 2023 also saw German constructors make deeper cuts to their purchasing activity, which showed the sharpest decline for more than three years. Lower demand for building materials and products helped to alleviate the pressure on construction supply chains. This was underscored by a continued marked improvement in lead times on purchases. One of the main headwinds facing the construction sector was rising interest rates. Alongside heightened customer uncertainty and still-high building prices, it led to further strain on demand for construction work, as highlighted by a further steep drop in new orders.
South Africa
The price of AluminoSilicate witnessed a declining pattern in the South African region due to the poor performance from the downstream construction and other allied industries throughout the second quarter of 2023. The power cuts have worsened the country's economic crisis and hindered the construction industry developments. The demand for AluminoSilicate did not improve, and the market had enough supply in the country. Along with persistent load-shedding, the construction mafia is a growing threat to South African construction businesses. Criminal syndicates posing as local business forums, making it difficult for many companies to operate. With power outages and inflationary pressures weighing on company activity, the South African economy shrank for the second quarter of 2023, which resulted in a decreasing trend in the Aluminosilicate market. The daily costs of outages hinder investment and major infrastructure projects and seriously affect the delivery of goods and services. The continuous supply from the manufacturer limits the product's price, and improved supply chain activities further subdue the price of the product.
For the Quarter Ending March 2023
North America
In the North American market, the price of AluminoSilicate observed declined trend throughout the first quarter of 2023 due to the poor demand from the downstream construction, paints & coating industries. Furthermore, a decline in raw material Sodium Silicate was also attributed to the manufacturer's quoted lower prices to the buyers. The market was unfavorable for purchasing from end-use enterprises due to the high interest rates, rising prices of associated commodities, and other key driving factors. As per the data, the US market noted a decline in the price trend of around 7.2% in Sodium AluminoSilicate during the first quarter of 2023.
APAC
The Asian market witnessed an inclined trend in AluminoSilicate during the first quarter of 2023. China has accelerated infrastructure investment in the first quarter of this year to propel economic growth and drive up the activity of many associated downstream enterprises and broad market demand for basic materials, including AluminoSilicate. China opened the market after the Lunar holidays; the market got improved and received more orders from the overseas market, further supporting the price trend. On the other hand, the Indian AluminoSilicate market saw an uptick due to the high imported cargo from the overseas market was attributed to a positive price pattern in the Indian domestic market. According to ChemAnalyst, the cost of Aluminosilicate in the Chinese market was around USD 1112/MT during the last month of the first quarter of 2023.
Europe
Prices for Aluminosilicate decreased in the first quarter of 2023 as a result of the weak demand from the European region's downstream construction sectors. The price of the product dropped, and fewer new orders from both the domestic and overseas markets were received. The construction industry in Europe has been significantly impacted by an increase in borrowing costs, rising material costs, and fears of a recession, all of which have the potential to significantly lower property prices. Companies are reducing the scope of their construction projects to accommodate the inflation factor as a result of the rising construction costs for property developers. In addition, the European Central Bank (ECB) hiked interest rates significantly by 50 basis points in response to recent volatility in the banking sector, signaling its readiness to provide liquidity support for banks. As interest rates rise, demand often drops, which might be negative for the global construction industry.
For the Quarter Ending December 2022
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
