For the Quarter Ending March 2023
The first quarter of 2023 saw an ongoing trend of high North American Colloidal Silicon Dioxide prices due to growing raw material costs and strong global demand. According to a market source in Houston, the price of a variety of raw materials used in construction increased during the quarter, with inflationary pressure remaining the primary driver. The dynamics of pricing for goods offered on the US market during the fourth quarter of 2023 were impacted by the ongoing Russo-Ukrainian War. Strong demand for the product from the construction and adhesive sectors enabled consistent shipments to be domestic and international markets.
The first quarter of 2023 saw an increasing trend in the price of Colloidal Silicon Dioxide in Asia due to persistent demand from the pharmaceutical and low inventories available in the domestic market. The spring festival in China mostly brought on these rises, the developing conflict in Ukraine and Russia, the rising price of crude oil, etc. The regional supply dynamics have also been hampered by China's market closure for the spring festival, which created a supply gap that Japanese exporters later filled. The demand for colloidal silicon dioxide in APAC countries has increased as a result of increasing freight expenses brought on by stable crude oil prices. Towards the end of the quarter, the prices for Colloidal silicon Dioxide were assessed at around USD 6511 MT for Ex-Mumbai in March.
The price of colloidal silicon dioxide dramatically climbed in the first half of the quarter after increasing consistently, according to ChemAnalyst analysis. A significant fumed silica feed for the product maker, a 15% price rise for the global market will start in January. As a result, the market for Colloidal silicon dioxide kept growing in Europe. In addition, this price increase was mostly fuelled by high input costs and intense inflationary pressure on producers, as the nation's producer price index has already risen sufficiently to maintain this upward trend.
For the Quarter Ending December 2022
Due to rising raw material costs and robust worldwide demand, North American Colloidal Silicon Dioxide prices continued to be high in the fourth quarter of 2022. A market source in Houston claims that the cost of a number of construction-related raw materials climbed throughout the quarter, with inflationary pressure continuing to be the main motivator. The ongoing Russo-Ukrainian War had an impact on the dynamics of pricing for items supplied on the US market during the fourth quarter. The product's strong demand from the construction and adhesive industries made steady exports to both domestic and foreign markets possible.
The continued turbulence across the world had been hurting the Asian market for Colloidal Silicon Dioxide, but in the second half of the third quarter, demand for the commodity dramatically decreased. The global market supply disruption caused by COVID restrictions in China, the escalating conflict in Ukraine and Russia, the growing price of crude oil, etc., were the main causes of these decreases. Due to China's pandemic-related uncertainty, which led to a supply vacuum that was eventually filled by Japanese exports, the regional supply dynamics have also been under strain. Because of lower freight costs due to steady crude oil prices, the demand for fumed silica in APAC nations has fallen. Towards the end of the quarter, the prices for Colloidal silicon Dioxide were assessed around USD 6212.82/MT for Ex-Mumbai in December.
According to the ChemAnalyst assessment, the price of Colloidal Silicon Dioxide increased significantly in the second half of the quarter after rising steadily in the first. A large fumed silica manufacturer, announced a 15% price increase beginning in October for the global market. The market for fumed silica continued to expand in Europe as a result. In addition, given the nation's producer price index has already risen sufficiently to maintain this upward trend, this price increase was primarily driven by high input costs and strong inflationary pressure on producers.
For the Quarter Ending September 2022
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.
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.
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, 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.
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.
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.
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.