For the Quarter Ending September 2022
A Houston-based market source revealed to ChemAnalyst that the market movement shifted in a different direction when the central government announced a revision in interest rates in the country. The decision led the economic activities to slow down, which was essential to calm the inflationary pressure in the USA. However, market activities were already slow due to high raw material costs, and traders were opting for the wait-and-see approach. Nevertheless, Fumed Silica prices have traced an overall uptrend during July and started plummeting afterward in the USA, primarily driven by prolonged inflationary pressure in the country. Thus, Fumed Silica's price in the USA hovered around USD 7240/MT during September 2022.
Marginal positive price revision was observed for Fumed Silica in Japan during July 2022, owing to stable demand from the domestic as well as international market, which later kept on falling in the domestic market. As per the data, Fumed Silica prices showcased a decline during August and September post witnessing consistent price revisions for several months. However, market players revealed that the demand was revised to slow down again in the market, owing to the slowing economic activities of the overseas market. Thus, post witnessing a hike, Fumed Silica Price in Japan Hovered around USD 7540/MT during July 2022.
As per the data, the European Fumed Silica market witnessed an uptrend during the first month of the quarter owing to rising inflationary pressure and supply disruption caused by the Russo-Ukrainian war. During Q3, Russia announced to curb supplies of Natural gas to Germany, which made converters more cautious about the procurements. The Manufacturing Purchasing Managers' Index, the PMI index of Europe, hit 49.8 points in July 2022, 2.3 lower than the previous month. Thus, the recession also affected the overall demand fundamentals for the coming months; thus, domestic players started looking forward to delaying imports. Conclusively, post witnessing a rise of around 1.5%, Fumed Silica prices assessed around USD 7640/MT during July 2022.
For the Quarter Ending Q2 2022
Prices for North American Fumed Silica remained high throughout the second quarter of 2022 due to growing raw material costs and steady global demand. According to a Houston-based market source, several construction-related raw materials' prices continued to rise during the quarter, with a heavy burden of inflationary pressure remaining the main driving cause. Additionally, the ongoing Russo-Ukrainian War's impact on natural gas prices during the second quarter impacted the product's pricing dynamics across the US market. The product's demand dynamics from the construction and adhesive industries further supported the regular shipments to domestic and overseas markets.
Long-standing global uncertainty had been hurting the Asian market for Fumed Silica, although in the second part of the quarter, demand for the product showed a sharp recovery. The primary causes of these increases were supply disruption on the international market caused by COVID regulations in China, the escalating crisis between Russia and Ukraine, the rising price of crude oil, and so on. In addition, China's pandemic-related uncertainty has put pressure on regional supply dynamics, which led to a supply gap that was subsequently filled by Japanese cargoes. The primary causes of these increases in demand for Fumed Silica in APAC nations were rising freight costs due to rising crude oil prices and a sudden rise of COVID cases in China, the key exporting nation.
According to ChemAnalyst's evaluation, it was seen that the price of Fumed Silica increased significantly in the second half of the quarter after rising steadily in the first half. A major producer of Fumed Silica, Cabot, announced a 15% price increase for the global market beginning in July. As a result, the market for Fumed Silica in Europe continued to trend upward. Furthermore, given that the country's producer price index has already risen enough to support this upward trend, this price increase was primarily driven by high input costs and intense inflationary pressure on producers.