For the Quarter Ending September 2022
North America
Prices for North American Colloidal Silicon Dioxide remained high throughout the third quarter of 2022 due to growing raw material costs and steady global demand. A market source in Houston said that certain construction-related raw material costs grew throughout the quarter, with inflationary pressure continuing to be the main cause. The ongoing Russo-Ukrainian War also had an impact on the pricing dynamics for items on the US market during the second quarter. The product's demand dynamics from the construction and adhesive industries supported consistent shipments to domestic and foreign markets.
Asia
The Asian market for colloidal silicon dioxide had been suffering from ongoing worldwide unrest, but in the second half of the quarter, demand for the product sharply recovered. These rises were mostly brought on by supply disruption on the global market brought on by COVID rules in China, the developing conflict in the Ukraine and Russia, the rising cost of crude oil, etc. The regional supply dynamics have also been under pressure due to China's pandemic-related uncertainties, which created a supply gap that was later filled by Japanese shipments. Increased freight costs mostly brought on these rises in demand for Fumed Silica in APAC countries because of rising crude oil prices and a sudden increase in COVID cases in China, the main exporting nation. Towards the end of the quarter, the prices for Colloidal Silicon Dioxide were assessed at around USD 5991/MT for Ex-Mumbai in September.
Europe
The price of Silicon Dioxide grew dramatically in the second half of the quarter after increasing consistently in the first, according to the ChemAnalyst review. A significant producer of fumed silica, Cabot, announced a 15% price hike starting in July for the international market. As a result, the European market for fumed silica kept growing. Furthermore, this price increase was mostly fuelled by high input costs and significant inflationary pressure on producers, as the country's producer price index has already risen sufficiently to maintain this upward trend.
For the Quarter Ending June 2022
North America
Despite ongoing demand from the pharmaceutical industry in the North American market, prices of colloidal silicon dioxide remained steady in Q2 2022. Production expenses increased during the first part of Q2 due to port congestion and fluctuating raw material supply. The labor scarcity also impacted the labor rates, raising the values even further. Due to high freight costs brought on by a globally disturbed supply chain and rising crude oil prices due to the conflict between Russia and Ukraine, Silicon Dioxide prices in the US market surged in May. In the USA, the cost of silicon dioxide increased. Due to the robust demand from the downstream industries, the price of colloidal silicon dioxide in the US market increased as we approached the second quarter.
APAC
During Q2 2022, prices of Colloidal Silicon Dioxide rallied upwards on the back of the Russian invasion of Ukraine, led to an increase in crude oil and energy costs worldwide, which in turn led to an increase in the price of raw materials like silica, which in turn led to higher market pricing for colloidal silicon dioxide this quarter. Supply chains were disrupted due to the pandemic's reappearance and the unstable nature of the current shipping networks. Because of the geopolitical conflict between two major energy-producing nations, crude oil and energy prices have increased globally. This has led to an increase in the price of the raw material silica metal. The demand-supply mismatch was caused by a robust operating rate combined with increasing demand from downstream industries, such as the automotive, construction, and EV makers.
Europe
During the second quarter of 2022, Colloidal Silicon Dioxide prices rose in the European market. Imported supplies became more expensive due to ongoing increases in freight costs, and high energy prices throughout the winter impacted the overall cost of production in the European region. Throughout Q2, the demand in the pharmaceutical industry remained steady. The European colloidal silicon dioxide market displayed conflicting attitudes during the second quarter of 2022. Due to the ease of imports and strong production rates to fulfill domestic and international market demands, the product supply in the European region increased at the beginning of the quarter. However, a rise in the price of colloidal silicon dioxide was seen in the second half, which was accompanied by high manufacturing costs and supply chain bottlenecks on the trade routes. Colloidal silicon dioxide prices in the European region during this time also increased due to rising freight costs.
Prices of Colloidal Silicon Dioxide remained stable amid consistent demand by consumers from the pharmaceutical sector in the North American market. During the 1st half of Q1, production costs increased due to port congestion and uncertainty in the availability of raw materials. Also, the labor shortage affected the production rates, which further increased the values. In March, high freight costs due to the globally disrupted supply chain and inflation in Crude oil due to the war between Russia and Ukraine increased Silicon Dioxide values towards the end of the 1st quarter of 2022 in the US market. Silicon Dioxide prices in the USA witnessed an increment by nearly USD 100/MT in Q1-2022.
Demand for Colloidal Silicon Dioxide from the downstream pharmaceutical industries rose continuously in the Asian market during Q1 of 2022. The feed silica values remained firm throughout the period, which impacted the production costs of the Colloidal Silicon Dioxide in Q1. In March, uncertainty in the supply of raw materials due to the global supply chain disruption and high crude oil values increased the prices in second half of the first quarter of 2022. At the end of the quarter, prices of Colloidal Silicon Dioxide on CFR basis were accessed at USD 7010.66 per tonne in India.
Prices of Colloidal Silicon Dioxide increased in the European market during the first quarter of 2022. Continuous rise in freight costs increased the prices of imported materials, and high energy costs during winter influenced the overall production cost in the European region. The demand remained consistent in the pharmaceutical sector during Q1. However, high crude oil values amidst the crisis in the East European region because of the war between Ukraine and Russia significantly increased the prices in Europe in March. Silicon Dioxide prices in Europe increased by nearly 3% in Q1-2022.
