For the Quarter Ending September 2024
North America
In Q3 2024, the North American Potassium Silicate market experienced a significant downturn, with prices declining compared to the previous quarter. This drop was primarily fueled by weakened demand from key sectors such as construction and glass, both of which faced persistent supply chain disruptions and logistical bottlenecks.
Ongoing port congestion, labor strikes, and the looming threat of hurricanes severely dampened market sentiment, contributing to a bearish pricing trend. Furthermore, plant shutdowns, particularly those caused by Hurricane Beryl, tightened supply levels and intensified the downward pressure on prices. Despite some optimism for a recovery, demand remained sluggish, leaving domestic producers and traders struggling with challenging market conditions.
Within North America, the USA experienced the most pronounced price fluctuations, exhibiting a continuous negative trend throughout the quarter. Overall, the pricing environment for Potassium Silicate in North America during Q3 2024 was largely unfavorable, influenced by weak demand, and compounded by external factors such as weather-related disruptions, labor challenges, and supply chain inefficiencies that further strained the market dynamics.
APAC
In the third quarter of 2024, Potassium Silicate prices in the APAC region exhibited a mixed trend, fluctuating due to several key factors. Prices eased at both the beginning and the end of the quarter, while a notable surge occurred in August. Despite ongoing global port congestion, supply levels remained sufficient while the demand was subdued from downstream industries, particularly construction and glass. South Korea experienced the most significant price changes, highlighting its pivotal role in the regional market. Seasonal factors contributed to the demand fluctuations, particularly with construction activities influencing market dynamics. The price increase in August was largely driven by supply constraints caused by typhoons in the region and ongoing congestion at major Chinese ports, resulting in shipment delays. However, by the quarter's end, a downward trend emerged, primarily due to the low cost of imported materials from other Asian markets, which exerted downward pressure on regional prices. Additionally, the cautious approach of major Asian markets, particularly China, further affected regional dynamics. Compounding these challenges, Typhoon Bebinca caused severe flooding and disrupted logistics during the Mid-Autumn Festival, making transportation more difficult and exacerbating already low demand. Overall, prices eased by 3% compared to the previous quarter, with a quarter-end price change reflecting a 2.9% decrease for Potassium Silicate Glass grade CFR Busan (South Korea).
Europe
In Q3 2024, the European Potassium Silicate market experienced a significant decline in prices, primarily due to weakened demand from key downstream sectors such as construction and glass. This downturn was further exacerbated by several factors, including sluggish industrial activity, congestion at major ports, and challenging economic conditions, all contributing to an overall bearish market sentiment. Germany, in particular, faced the most pronounced price fluctuations, grappling with subdued demand that resulted in a price drop of 3% compared to the previous quarter. The negative trend was intensified by disrupted supply chains and low consumer sentiment, culminating in a price change of 2% for Potassium Silicate Glass Grade DDP in Hamburg by the end of the quarter. Overall, the quarter highlighted a challenging pricing environment in Germany, characterized by consistently declining prices driven by a combination of weakened demand, supply chain disruptions, and adverse economic factors. This series of challenges left market participants navigating an increasingly difficult landscape, marked by uncertainty and caution as they approached the end of Q3.
For the Quarter Ending June 2024
North America
In Q2 2024, Potassium Silicate prices in North America experienced notable volatility, with a general decline followed by a rebound by the end of June. This period was characterized by a complex mix of supply chain disruptions, changing demand dynamics, and geopolitical tensions.
Significant supply chain challenges included the collapse of the Francis Scott Key Bridge in Baltimore, which severely impacted transportation logistics, and a potential strike by workers at major freight rail carriers CN and CPKC, which threatened to disrupt trade across North America. Additionally, the Panama Canal Authority's decision to add extra transit slots per day provided some relief to supply pressures, but it was insufficient to counteract the broader market disruptions.
Demand for Potassium Silicate declined mainly due to a slowdown in the manufacturing sector and decreased construction spending, exacerbated by high interest rates that limited expenditure on construction projects and reduced consumer spending. Nonetheless, demand picked up toward the end of the quarter, driven by renewed interest in infrastructure projects and increased private-sector construction activities.
APAC
Throughout Q2 2024, the Potassium Silicate market in the APAC region has experienced a notable decline in prices, driven by several significant factors. The primary influences include weak demand from downstream sectors such as ceramics and construction, elevated inventory levels, and an oversupply situation. Additionally, economic uncertainties and a slowdown in manufacturing activities have exacerbated the downward pressure on prices. Supply chain disruptions, particularly those affecting major ports and logistical routes, have further contributed to market volatility. Despite sufficient supply, subdued demand both domestically and internationally has hindered price stabilization, reflecting a consistently negative pricing environment across the region. Focusing on South Korea, which has seen pronounced price changes, the market has mirrored these regional trends. Throughout the quarter, the South Korean market has contended with high inventory levels and weak demand from the construction and ceramics industries. This has led to a consistent decline in prices, underpinned by an oversupply and economic challenges. The correlation between seasonality and price changes has been evident, with demand typically lower during the monsoon season, further weakening market dynamics. By the end of Q2 2024, the price of Potassium Silicate Glass Grade CFR Busan stood at USD 825/MT. This quarter has been marked by a definitive downtrend, influenced by supply-demand imbalances and economic constraints, with no significant plant shutdowns reported.
Europe
In Q2 2024, the European Potassium Silicate market exhibited a pronounced upward price trajectory, driven by a confluence of significant factors. The easing of a protracted downturn in Eurozone manufacturing fostered a more optimistic business sentiment, although this was tempered by ongoing weak domestic demand and high financing costs. Severe weather events, such as torrential rain and flooding in Germany, led to substantial supply chain disruptions, particularly along the River Rhine, a vital industrial shipping route. These disruptions escalated transportation costs and created logistical bottlenecks, contributing to escalating product prices. Additionally, geopolitical tensions in the Middle East and supply chain interruptions due to reduced water levels in the Panama Canal further exacerbated the supply constraints. Focusing on Poland, which experienced the most substantial price shifts, the overall trend revealed a marked increase in prices due to persistent supply shortages and elevated production costs. Seasonality effects were noticeable, with higher prices in the second half of the quarter, reflecting the compounded impact of supply chain disruptions and reduced inventory levels. Overall, the pricing environment for Potassium Silicate in Poland during Q2 2024 was predominantly positive, characterized by firm demand, significant supply disruptions, and rising production costs. The quarter concluded with a price of USD 1270/MT for Potassium Silicate Glass grade FD Darlowo, underscoring the bullish market dynamics and highlighting the sector's resilience amidst multifaceted challenges.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing dynamics of Potassium Silicate in North America exhibited a fluctuating pattern, influenced by various factors. While the overall trend indicated stability, the USA market witnessed significant fluctuations, experiencing both price increases and stability during this period.
By mid-quarter, the Potassium Silicate market in the USA maintained price stability following a surge in January. Moreover, the moderate import cost of the product contributed to a slight rise in domestic market prices. The business environment in the US portrayed a substantial increase in overall economic activity, with companies reporting robust growth in new orders for goods and services, fostering an optimistic outlook and boosting confidence in future business prospects.
The rise in construction activities and positive business sentiment drove the upward trajectory of the product in the US market. Furthermore, freight charges associated with importing Potassium Silicate to the US impacted product pricing in the domestic market. However, the supply remained sufficient in the domestic market, prompting traders to adjust prices with only a marginal increase this month.
APAC
During Q1 2024, the Potassium Silicate market in the APAC region remained stable, albeit experiencing a decline in prices only in February, which remained unchanged for the rest of the quarter. This stability was attributed to a balance between supply and demand dynamics within the market. The market situation in South Korea, where price fluctuations were most pronounced, played a significant role in shaping pricing trends. Overall, the trend in South Korea during Q1 2024 was bearish, with prices experiencing a significant decline of 6.8% in February. This decline was attributed to sluggish demand from downstream industries, such as construction and the chemical derivative segment, along with the presence of ample inventory in the domestic market. The Lunar New Year holidays also contributed to lower procurement activities and reduced demand during this period. Moreover, it can be inferred that there has been a decline in prices compared to the same quarter last year due to factors such as sluggish demand and ample supply.
Europe
In Q1 2024, the Potassium Silicate market in Europe observed a mixed trend, commencing with a 4% decrease in prices in January, followed by surges of 2% in both February and March, respectively in Poland. The pricing dynamics were influenced by various factors, encompassing the market situation in European nations, supply chain disruptions, and demand dynamics. Further, the market situation in Germany played a pivotal role, with price fluctuations being particularly pronounced in this region. The construction sector encountered challenges such as a slowdown in demand, rising prices, increasing interest rates, and economic uncertainties, contributing to a sustained decline in demand for construction projects, especially in the housing segment. Furthermore, disruptions in the supply chain caused by geopolitical tensions in the Middle East, reduced water levels in the Panama Canal, and an attack by Houthi rebels affecting transportation in the Red Sea further impacted market conditions. However, the mid-quarter price surge was primarily attributed to supply shortages in the region amid supply disruptions, which prompted traders to increase the prices of the product. Additionally, there were no reports of plant shutdowns by market participants during this period.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the Potassium Silicate market in North America underwent notable changes influenced by various factors impacting prices and market conditions.
Firstly, there was a modest decrease in demand, particularly with limited growth observed in the construction sector. This decline was caused by lower purchasing activity and diminished orders for Potassium Silicate. Secondly, the market saw a moderate availability of Potassium Silicate, due to a consistent supply from traders. However, the combination of restrained demand and abundant supply exerted downward pressure on prices.
Among the countries in the region, the United States experienced the most significant price changes. This decline was primarily a consequence of subdued demand and the surplus supply prevailing in the market. Additionally, towards the end of the quarter, the US market witnessed a slight upturn in demand, leading to a minor increase in prices. In summary, the North American Potassium Silicate market in the fourth quarter of 2023 was marked by subdued demand, a moderate supply situation, and a slight overall decline in prices.
APAC
The fourth quarter of 2023 in the APAC region witnessed a challenging period for the Potassium Silicate market. The market experienced a bearish trend, primarily due to sluggish demand and an oversupply of the product. One of the major factors impacting the market was the decline in the downstream construction industry, which resulted in reduced demand for Potassium Silicate. Additionally, the availability of cost-effective imported goods from overseas markets further intensified the downward pressure on prices. South Korea, in particular, faced significant price changes, with a decrease of -21% from the previous quarter. The country's market was heavily influenced by a decline in new orders and a cautious approach among buyers due to high-interest rates. The market also witnessed a year-on-year price decrease of -11%, highlighting the challenging conditions faced by the industry. However, a notable plant shutdown did not occur during this period. The quarter ended with the price of Potassium Silicate Glass Grade CFR Busan in South Korea standing at USD 1000/MT.
Europe
In the fourth quarter of 2023, the Potassium Silicate market in Europe encountered a challenging period but showed signs of recovery by the end of the quarter. The demand for Potassium Silicate remained consistently low, mainly attributed to the slowdown in the construction sector, a significant consumer of the product. The construction industry in the region experienced substantial downturns, resulting in decreased activity and a reduced demand for building materials and related products. This weakened demand impacted the prices of Potassium Silicate. Moreover, there was a surge in the price of Potassium Silicate in December due to a supply shortage. Producers responded to persistently low consumption and economic slowdown by cutting their production, creating a shortage of the product in the European market. Despite this, increased demand from the global market exacerbated the supply shortage. Furthermore, the availability of the product remained moderate, with no reported plant shutdowns affecting the supply chain. Overall, the Potassium Silicate market in Europe experienced a bearish trend during the fourth quarter of 2023. As of the quarter concluded, the price of Potassium Silicate Glass Grade FD Darlowo in Poland was quoted as USD 1215/MT.
