For the Quarter Ending March 2025
North America
In Q1 2025, fused silica prices in the North American region recorded a quarter-on-quarter decline compared to Q4 2024. At the start of the quarter, prices dipped as semiconductor capital expenditure cooled following year-end budget cycles and key glass, and specialty chemical plants underwent seasonal maintenance. Steady domestic quartz production and uninterrupted import flows ensured ample supply, while cautious procurement by chip fabricators and automotive glass manufacturers muted early-quarter demand.
Mid-quarter, the downtrend deepened amid rising inventories and softer inquiries. The manufacturers operated at conservative utilization rates despite healthy AI and data-centre expansions, and automotive glazing applications remained restrained by slow vehicle production. Although freight costs fell modestly, this failed to trigger significant restocking. Downstream electronics and specialty optics users continued to defer bulk purchases amid macroeconomic and trade policy uncertainty.
By quarter-end, prices saw a further marginal decrease. Feedstock quartz costs and energy prices held steady, but persistent oversupply and subdued semiconductor, automotive, and glass demand drove the overall Q1 decline. Unless capital investment rebounds or downstream activity picks up, the fused silica market is likely to remain under pressure in Q2.
APAC
In Q1 2025, fused silica prices in the APAC region recorded a quarter-on-quarter decline of 2.3% compared to Q4 2024. Early in the quarter, prices saw a marginal decrease as semiconductor sector investments slowed and seasonal factors like the Lunar New Year reduced operational activity. Despite steady supply, subdued demand and weak transaction volumes weighed on market sentiment. U.S. export controls further pressured Chinese demand, while easing global prices and cautious procurement added to the bearish tone. As the quarter progressed, prices continued to decline amid weak market inquiries and limited transactions. Although supply remained stable, demand from semiconductors and automotive sectors fluctuated. Government support briefly lifted semiconductor-related activity, but the effect was short-lived due to sluggish EV sales and geopolitical uncertainty. Market confidence remained low, with most participants adopting a cautious outlook post-holiday. By quarter-end, prices saw another marginal dip. Supply was consistent across major hubs, backed by stable energy costs and resumed furnace operations. However, downstream demand remained weak as global market challenges and U.S. policy uncertainties persisted. This imbalance ultimately drove the quarter-on-quarter price decline. China registered the most significant decline, with the quarter-end price settling at USD 603/MT FOB Shanghai.
Europe
In Q1 2025, fused silica prices in the European region recorded a quarter-on-quarter decline compared to Q4 2024. At the start of the quarter, prices fell as semiconductor capital expenditure slowed following moderating AI and data-centre investments, while U.S. export controls and trade tensions added uncertainty. Although domestic quartz production remained firm, muted procurement from chip fabricators and specialty glass producers weighed on sentiment. As the quarter progressed, further declines occurred amid rising inventory levels at European fabs, which ran at conservative utilization rates despite calls for a second EU Chips Act. Chinese chipmakers ramped capacity, diverting surplus fused silica into Europe, yet downstream buyers in automotive glazing and electronics held off restocking amid policy uncertainty. By quarter-end, prices saw a marginal further dip. Feedstock quartz and silica sand costs remained stable, but lacklustre semiconductor demand and subdued automotive sector restocking maintained downward pressure. Without renewed chip investments or a stronger auto-sector recovery, the fused silica market is likely to remain under pressure in Q2.
For the Quarter Ending December 2024
North America
In Q4 2024, the Fused Silica market in North America experienced a notable upward pricing trend, primarily driven by strong demand from the semiconductor industry. The global semiconductor market saw substantial growth, with U.S. semiconductor sales hitting a record $57.8 billion in November 2024, representing a 20.7% increase year-on-year. This surge in semiconductor sales directly boosted the demand for Fused Silica, as it is essential for semiconductor manufacturing processes.
Geopolitical factors, particularly the sanctions imposed by the U.S. on China, contributed to tightening supply conditions in the region. These sanctions disrupted the flow of critical raw materials for Fused Silica production, leading to higher production costs. As a result, suppliers in North America faced challenges in sourcing enough material to meet the growing demand, further elevating prices. The impact of these sanctions has been felt across various industries reliant on Fused Silica, particularly those in the electronics and semiconductor sectors.
Seasonal factors also played a role in the market dynamics during the quarter. As the year ended, production schedules ramped up, leading to increased demand for Fused Silica. Despite tight supply chains, the demand from the expanding semiconductor market helped stabilize consumption levels. The combined effect of geopolitical tensions, strong semiconductor sales, and seasonal production spikes has made the Fused Silica market in North America more volatile, with prices expected to remain elevated in the near term.
APAC
In Q4 2024, the Fused Silica market in the APAC region witnessed a mixed price trend while remaining stable compared to Q3. Despite subdued demand from key downstream sectors such as construction, semiconductors, and refractories, the market held steady, supported by consistent domestic production and supply. Geopolitical factors, particularly ongoing U.S.-China trade tensions, influenced demand, especially in the semiconductor sector, where restrictions on Chinese companies added pressure. However, the Chinese government's support for domestic tech firms like Huawei helped stabilize market conditions. Logistical challenges, including port congestion and elevated freight rates, compounded supply chain issues, but did not lead to significant disruptions in product availability. The overall market was characterized by weak export momentum, particularly in other Asian markets, which continued to dampen price movements. Domestic demand from industries like electronics and semiconductors provided some support, but it wasn't enough to push prices higher. By the end of Q4, Fused Silica prices in China remained stable, with the FOB Shanghai price quoted at USD 613/MT, showing no significant change from the previous quarter. While the short-term outlook remains cautious, the market's stability in Q4 signals a balance between supply and demand amid external challenges.
Europe
In Q4 2024, the Fused Silica market in Europe faced a stable pricing trend, with prices holding steady compared to the previous quarter. The semiconductor and electronics sectors, key drivers of Fused Silica demand, experienced mixed performance. While global semiconductor sales grew, Europe saw a 6.7% decline, primarily due to ongoing supply chain disruptions and geopolitical uncertainties. This slowdown in demand from crucial industries contributed to a cautious market environment, with limited price movements. Policy support, particularly from the European Union, aimed at boosting technological self-sufficiency, provided some stability. However, geopolitical tensions, including the ongoing U.S.-China trade dispute, added pressure on supply chains, resulting in logistical delays and higher costs. Despite these challenges, demand from the computing sector showed a slight recovery, helping to offset some of the declines. By the end of Q4, Fused Silica prices in Europe remained stable. This price stability reflects a balance between supply and demand, though market participants continue to face uncertainties stemming from geopolitical factors, weak downstream demand, and ongoing supply chain disruptions. The outlook for the sector remains cautiously optimistic, with expectations of a rebound in 2025.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Fused Silica market in North America experienced an upward pricing trend, marked by several factors influencing market dynamics. A key driver of this increase was the robust demand from various downstream sectors, particularly semiconductor manufacturing, optics, and telecommunications, which benefited from a general acceleration in economic activity. This heightened demand led to significant price fluctuations as supply constraints emerged.
Challenges in the supply chain, exacerbated by rising costs of imported materials from Asia, played a critical role in shaping the market. Issues such as port congestion, labor disputes, and the looming threat of hurricanes created additional hurdles for the industry. Disruptions from Hurricane Beryl, which led to plant shutdowns, further tightened supply levels, contributing to the overall upward pressure on prices.
Within the United States, the market exhibited the most pronounced price changes. The escalating demand for semiconductors, coupled with moderate demand in the construction sector's need for refractory materials essential for building furnaces and kilns, further propelled the pricing trend. Overall, the combination of firm demand and supply challenges fostered an environment of increasing prices for fused silica during this quarter.
APAC
In the third quarter of 2024, the Fused Silica market in the Asia-Pacific (APAC) region exhibited a mixed pricing trend, initially easing before experiencing a notable surge by the quarter's end. In the first two months, prices declined due to challenging global economic conditions and fluctuations in raw material costs, particularly silica sand, which exerted downward pricing pressure. Demand for Fused Silica remained subdued across several industries, including semiconductor manufacturing, optics, and telecommunications. Moreover, the sluggish demand for Fused Silica in the production of refractory materials, crucial for constructing furnaces and kilns, further contributed to the price dip. However, as the quarter concluded, prices rebounded amid supply constraints caused by typhoons Yagi and Bebinca that disrupted supply chains throughout Asia. These natural events exacerbated existing logistical challenges, while heavy congestion at the Port of Singapore impacted imports and exports through this critical hub. To avoid declining container rates, several shipping lines canceled export sailings from Asia in anticipation of China’s National Day holiday in early October, which may have exerted upward pressure on rates. A comparison between the first and second halves of the quarter indicated a 1% price increase, with Fused Silica prices in China rising by 2.4% in September compared to the previous month.
Europe
In the third quarter of 2024, the Fumed Silica market in Europe experienced significant price fluctuations influenced by a variety of factors. Disruptions in supply chains were notably affected by ongoing conflicts in the Red Sea, which created uncertainties for suppliers. Additionally, substantial congestion at major ports caused operational inefficiencies, compounding the challenges faced by the market and contributing to rising prices. The increase in global shipping costs, alongside expensive logistics stemming from these disruptions, further escalated pricing pressures. Despite being a primary consumer of fused silica, the construction sector remained sluggish, limiting overall demand while demand from the semiconductor industry remained firm. However, the rising costs of imported materials from Asia significantly impacted pricing dynamics within the European market. Furthermore, congestion at key container ports in Northern Europe intensified supply chain disruptions, creating additional strains on availability and further elevating prices. Overall, the pricing environment for fumed silica in Europe during Q3 2024 was marked by a negative sentiment due to sluggish demand. Nevertheless, prices surged amid ongoing supply constraints and the increasing cost of imports, illustrating the complex interplay of global and regional market factors. This environment highlighted the challenges and uncertainties facing the industry.
For the Quarter Ending June 2024
North America
In Q2 2024, the Fused Silica market in North America experienced a pronounced upward trend in pricing. The quarter was characterized by a consistent increase in prices, driven by multiple factors affecting the market dynamics. The most significant factor was the persistent surge in demand from downstream sectors, amid a broader economic acceleration. High interest rates, aimed at curbing inflation, curtailed spending on manufactured goods and capital projects, significantly reducing demand for Fused Silica.
Additionally, the rise in the cost of imported materials from the Asian market, coupled with insufficient regional supplies, contributed to the pricing downturn. Supply chain issues, such as the shutdown of Baltimore's inner harbor and potential strikes by freight rail carriers CN and CPKC, added to the market's sentiment, these disruptions impacted overall supply.
Focusing on the USA, the country saw the most significant price fluctuations, with an overall positive trend throughout the quarter. This can be attributed to strong demand from key industries and a growth in manufacturing activity.
APAC
Throughout Q2 2024, the Fused Silica market in the APAC region experienced a robust upward trajectory, marked by a confluence of demand-driven factors and supply-side constraints. The surge in Fused Silica prices was driven primarily by heightened demand from downstream sectors. These industries demonstrated a consistent uptick in activity, further amplified by seasonal construction booms and government-led infrastructure projects. Additionally, the resurgence of manufacturing units after disruptions, caused by natural calamities and heatwaves, played a pivotal role in stabilizing the supply, though not without creating temporary bottlenecks. Focusing exclusively on China, this quarter encapsulated significant price fluctuations, attributable to both internal and external market dynamics. The Chinese Fused Silica sector contended with a range of challenges, including increased freight rates and an unexpected dip in the property sector, which traditionally commands significant Fused Silica consumption. Despite these headwinds, the overall market sentiment remained bullish, fueled by a stable supply chain and strategic stockpiling by major industry players. Moreover, the price landscape remained overwhelmingly positive, culminating in a quarter-ending price of USD 623/MT FOB Shanghai for Fused Silica. This price point underscores an optimistic market environment, characterized by a resilient demand framework and adaptive supply strategies, ensuring sustained growth momentum for the foreseeable future.
Europe
In Q2 2024, Fused Silica prices in Europe experienced a significant upward trend, primarily driven by elevated import costs and logistical challenges. The main factors behind this increase were high freight rates in the Asian shipping industry and a series of General Rate Increases (GRIs) imposed by carriers, which led to substantial hikes in transportation expenses, directly affecting the cost of imported chemicals. Additionally, geopolitical uncertainties prompted U.S. importers to place orders earlier, increasing demand for shipping services and putting further pressure on freight rates. Robust demand from downstream industries also reinforced this upward trajectory. Despite fluctuations in construction output, the European market benefited from a resilient construction sector driven by improving economic activities. Seasonally, the summer months bolstered demand from the construction and automobile industries, sustaining high price levels. The correlation between increased freight costs and higher raw material prices, due to rising upstream crude oil prices, also played a crucial role. Notably, there were no disruptions from plant shutdowns, ensuring a stable supply environment.
