For the Quarter Ending March 2022
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.
For the Quarter Ending December 2021
The US Colloidal Silicon Dioxide market entered the fourth quarter with an upward pressure in its prices on the back of the strong demand from the downstream sectors. The US Government has used several strategies to lower the prices of several commodities in order to reduce the expenditures, among which the downstream pharmaceutical industry remains under increased pressure. The covid-19 pandemic situation has significantly increased healthcare expenditure in all markets, which has further exacerbated the market situation in the US.
In Q4 2021, the pricing trend of the Colloidal Silicon Dioxide market showcased an upward trajectory across the Asian market. In the Indian domestic market, the prices of Colloidal Silicon Dioxide increased in the fourth quarter and escalated from USD 6175.87/mt to USD 6547.33/mt CFR JNPT from October to December. In terms of demand, offtakes from the downstream pharmaceutical industry remained strong throughout these three months. However, the prolonged port and freight congestion continued to disrupt the market sentiments, due to which traders said that they had difficulties in procuring the product. The prices are likely to increase further in Q1 2022 as the international players have heard revising their product prices for the global chain.
During the 4th quarter of 2021, the market sentiments of Colloidal Silicon Dioxide improved across the European region on the back of the increased demand and consumption from the downstream pharma sector. Supply chain disruptions continued to hamper the market sentiments in quarter 4 as well as they have increased the import price levels by approximately 11%. The Skyrocketed freight charges and prolonged port congestion further supported the pricing trend of Colloidal Silicon Dioxide across Europe. A producer of upstream Silica, Elkem, headquartered in Norway, stated that Silicon prices in Europe reached all-time highs during October and November, which further exacerbated the prices of Colloidal Silicon Dioxide.
For the Quarter Ending September 2021
During the third quarter of 2021, an improvement in the consuming market was observed in the North American region. Colloidal Silicon Dioxide prices in the US witnessed an upward trajectory during this timeframe backed by several factors. Due to the arrival of Ida hurricane along the Gulf Coast of the US, many production units and refineries remained closed for about a fortnight that impacted the production levels and squeezed the supply chains. It consequently affected the Colloidal Silicon Dioxide market in this quarter. Furthermore, expensive transportation charges also contributed to the inflation in the prices of Colloidal Silicon dioxide in this period.
Asian Colloidal Silicon Dioxide market noted improvement in the offtakes from downstream buyers in third quarter of 2021 after the resurgence in the industrial and market activities. In India market sentiments witnessed improvement backed by the surge in the production and consumption. Robust demand from the construction, paints and coatings and pharmaceuticals sector was seen that aided the pricing trend of the Colloidal Silicon Dioxide in India. Moreover, skyrocketing freight charges and crippled availability of shipping containers also pushed up the prices of Colloidal Silicon Dioxide as traders faced difficulties to procure the product owing to the freight congestion. Hence, Colloidal Silicon Dioxide Ex-Mumbai prices rose from USD 5817.94 per MT to USD 6144.53 per MT during the timeframe of July to September.
During the third quarter of 2021, Colloidal Silicon Dioxide market showcased mixed sentiments in Europe. At the beginning of the quarter, supply of the product in the European region improved owing to the ease in the imports and high production rates to meet the demands of the domestic as well as overseas market. However, in the latter half, an upsurge in the prices of Colloidal Silicon Dioxide was observed backed by the expensive production costs and supply chain disruption as an impact of Ida hurricane and congestion on the trade routes. Additionally, spiralling freight charges further contributed to the pricing trend of Colloidal Silicon Dioxide in this timeframe across the European region.