For the Quarter Ending March 2023
The US Potassium Silicate market has observed a slight decline in price patterns throughout the quarter of 2023 due to weak demand from the downstream industries. The construction industry continues to be hampered by the limited availability of skilled labor. A shortage in skilled labor in the construction industry was contributing to an increase in labor rates. In addition, trade contractors are being selective in taking on work to maintain the balance with available labor. The decline in fuel prices during the first quarter of 2023 has assisted in stabilizing transportation expenses. Other construction materials like cement and concrete prices rose due to inflation in the states and subdued the usage of the Potassium Silicate market.
The Asian market witnessed an inclined trend in Potassium Silicate during the first quarter of 2023. The Korean market deteriorated due to the impact of high-interest rates and rising raw material prices, and worries about the downturn in the local housing market were escalating. As a result, businesses were paying closer attention to global marketplaces. However, South Korea’s economy narrowly escaped a recession in the first quarter of 2023, barely growing after shrinking in the fourth quarter. China has followed the same price pattern throughout the quarter. Despite challenges such as tight capital and high operating costs, market confidence improved significantly in China.
The first quarter of 2023 saw a declining trend in the price of Potassium silicate commodities in Europe due to a lack of demand around the overseas market. High-interest rates, inflation rates, and geopolitical concerns all contributed to a fall in product demand. The price of the associated commodities has increased, and the trade activities of Potassium silicate have decreased due to inflation rates. Demand dynamics persisted in their lackluster state and intended a downward trend in pricing for the entire quarter. The cost of Potassium Silicate hovered around USD 1334/MT on an FD Darlowo (Poland) basis at the end of the quarter.
For the Quarter Ending December 2022
The Potassium Silicate market remained dull throughout the 4th quarter of 2022, owing to falling demand from the downstream industries amidst easing production costs in the global market. The USA has been battling with high inflationary pressure, which eased down after the intervention of the federal bank. However, this ease in inflationary pressure was a result of the high-interest rate imposed by the FED, which eventually led to a fall in the economic activities of the country. Consequently, demand for the product from the downstream construction and paint industry declined, supporting this price fall in the USA.
A slowdown in economic activities due to the pandemic and recessionary fear hovering all across the globe led the price of Potassium Silicate to fall in the Asian market during this month. As per the data, Chinese Potassium Silicate prices fell by around 5.5% during this quarter and hovered around USD 1284/MT (Spot) in China during December 2022. Further, this decline also helped major importing economies like South Korea, where traders were getting cheaper cargo from an international sellers. On the other side, the Indian market performed better than other economies due to the festive season in October and November, which induced demand from the domestic market.
Europe kept on struggling with the repercussion of Russo Ukrainian war, making it hard for the economy to rebound easily. As per the data, Potassium Silicate demand from the construction and detergent sector remained low and affected the price trend for the product in the market. Easing prices of natural gas also didn’t let the price of downstream commodities rise and injected some ease into the producers’ margin. However, despite being eased in the market, Natural gas prices were still hovering at a high value, and producer’s margins were under pressure.
For the Quarter Ending September 2022
In North America, the price of potassium silicate fluctuated throughout the third quarter of 2022. According to the data, the price of potassium silicate first declined in July and August as a result of the plenty of products in the nation and the slow demand from the local downstream industry. Market sources revealed that because there was no demand for the product from the downstream glass industry during the previous quarter, traders had an opportunity to lower their pricing. Slowed demand from the construction sector remained a matter of concern for the key players, as it was hurting the market dynamics of several related raw materials.
Dull market sentiments have been observed in the Chinese market during most of Q3 2022, where the demand for Potassium Silicate has remained lacking since the pandemic hit the country. However, despite significant recovery from the pandemic, the country was still struggling to retrieve economic momentum. Nevertheless, the government’s zero COVID policy is still a major matter of concern, which may change the current momentum. Additionally, a marginal price hike was observed during the final month of the quarter. Conclusively, post witnessing a decline of around 2.7%, Potassium Silicate price hovered around USD 1394/MT during September 2022 on a spot basis.
Major European countries like Germany and Poland started facing similar market fundamentals like Asia, where Potassium Silicate prices have fallen by a considerable fraction during this quarter. The data shows a fall of around 2% and 1.5% for Poland and Germany by the first half of August 2022, supported by wavering offtakes from the downstream construction industry amidst the rising tension of another natural gas crisis in the region. Additionally, Potassium Silicate prices changed their dynamics during September owing to the looming threat of the natural gas crisis in the region. Potassium Silicate price heard hovering around USD 1835/MT during August 2022.
For the Quarter Ending June 2022
The North American market has been facing the threat of inflation since the Russia Ukraine war started. Domestic players revised their product prices to maintain their margins, which pressured downstream consumers. ChemAnalyst data shows that the price of several commodities kept on tracing an upward trajectory owing to high input cost bolstered by high crude oil value, later exacerbated by fuming natural gas cost. Potassium Silicate price hovered around USD 1790/MT during May 2022. In addition, as per the analysis, the US market has also been heading towards a stagflation situation, which will affect the pricing dynamics for Potassium Silicate in the coming quarter.
Asian market witnessed an uptrend throughout the 2nd quarter of 2022, owing to a stable demand pattern from the domestic market amidst high manufacturing costs that affected the pricing dynamics for the product in the market. As per the ChemAnalyst data, a price hike of around 10-15% was observed in South Korea and India during May 2022, owing to disturbed market sentiments and sudden escalation in raw material costs. Meanwhile, in China, Demand for the product declined from the domestic market, while several construction material producers reduced their output due to lower offtakes. Despite these market fundamentals, prices kept uptrend throughout the quarter due to supply disturbances in major provinces. Potassium Silicate price assessed around USD 1470/MT during June 2022.
The European market has witnessed huge disturbances during this quarter, owing to the escalated Russo-Ukrainian war that disrupted regional trade activities. As per the ChemAnalyst data, the price of Potassium Silicate kept its uptrend during Q2 2022 in the European market. Looming scarcity of natural gas in Germany was a major concern for the domestic players during the first half of Q2 2022, which later came true, and prices shot up aggressively. Furthermore, owing to consistent price hikes in natural gas and crude oil value, domestic transportation expenses rose effectively and significantly affected Potassium Silicate prices. The data shows that the Potassium Silicate price hovered around USD 1860/MT during May 2022.
On the back of stable demand from the local buyers, the North American Silicate market saw several ups and downs during Q1 2022. As the global economy recovered from the pandemic, demand for the commodity remained stable from the downstream paper and construction sectors. However, the abrupt escalation of the Russia-Ukraine conflict slowed the overall flow and injected uncertainty into the global silicate market. Manufacturers were forced to increase their product prices in order to maintain margins, owing to trade disruptions and increased inflationary pressure on consumers due to high crude oil and natural gas costs. ChemAnalyst assessed Potassium Silicate prices as USD 1535/MT during February 2022.
Steep price escalation has been observed for Potassium Silicate across Asian market during past few months. Demand fundamentals for the product has been stable since the festive season arrived in major Asian economies, while rising freight cost coupled with soaring crude value has started bothering domestic players. Raw material prices have also started rising across domestic market post Russia Ukraine conflict escalated, as top Asian countries imports considerable amount of raw material potassium Carbonate from Russia and Europe. Furthermore, rising crude oil value has also affected global freight cost, making most of the products expensive in domestic market. These reasons have opportune traders to raise their offers to gain better margins. As per ChemAnalyst, Potassium Silicate price assessed around USD 1164/MT Glass Grade in China during February 2022.
The price value of Potassium Silicate surged by 3.6% in the domestic market of Germany during the month of February. The prices of Potassium Silicate glass grade were assessed at USD 1541 FD Hamburg. The prime factors contributing towards the price hike of Potassium Silicate were strong demand from end-use industries and the enhanced prices of feedstock, Silicon Dioxide. Detergent industries is one of the major sectors supporting high demand for Potassium Silicate. Furthermore, enhanced industrial activity has increased the overall usage of Potassium Silicate, especially in the manufacturing industries such as steel industry, hence augmenting the demand. Additionally, inflation in the global economy owing to higher crude oil prices and freight charges have also helped to propel the price of Potassium Silicate in Europe during the first quarter of 2022.