For the Quarter Ending June 2023
North America
North American Silica prices fluctuated during the second quarter of 2023 on the back of uncertain demand scenarios amidst the weakening economic momentum of the country. As per the data, Silica prices in North America declined during the month of May while maintaining stability for the month of April and June 2023. The price fall was driven by a dull demand outlook for the product, which affected the price trend of several commodities in the global market, including Silica Sand. However, different countries experienced different market fluctuations, though the trend for Silica Sand remained the same globally. Supplies remained stable in the global market, while international trade activities have not shown any sign of disturbance. On the other side, Freight charges on several trade routes were falling during May 2023, supporting this downward trend. However, the report released by Fred stated that the construction sector showcased a surprising rebound during May, but the actual driver for that growth didn’t show any effect on the prices of construction-related raw materials, including Silica Sand.
Asia
Silica prices in Asia also showcased a similar pricing trend during Q2 2023. Silica prices declined in the Asian market during the mid of the quarter owing to falling optimism related to the construction industry amidst ample availability of the product. As per the data, the demand outlook remained low for the product, which has affected the price trend of several commodities in the global market, including Silica Sand. As per the data released by NBS (National Bureau of Statistics, China), CPI remained under control during May 2023 while hovering around 100.1, and this market fundamentals sustained during June 2023 too. The construction sector has remained low globally after witnessing a marginal improvement during the early summer season. Furthermore, the demand outlook has also been low, which has supported this price trend. Silica prices have also shown similar price momentum in the Indian market owing to ample product availability in the country and no external disturbances related to supplies etc. Further, the construction sector of India rose initially during the arrival of the summer season. Since then, construction activities have been unchanged.
Europe
European Silica market also remained the same as other global economies. As per the data, Silica prices fell during the month of May, while maintained stability for the rest of the quarter. Furthermore, demand for the product remained low in the European market due to consistently low economic activities exacerbated by violence erupted in France and ripple effect of the US economic slowdown. Thus, all these factors not only affected the price trend construction related raw material like Silica, but other commodities too. However, Regional freight charges remained high during this quarter too, affecting prices of several commodities including construction raw material but not Silica. However, supplies remained ample, and inflation was major driving factor for this price trend. During May 2023, Germany seemed to be falling into recession due to prolonged inflationary pressure on consumers, as consumers were not ready to invest into unnecessary things like luxury. Further, it was observed that Producer Price Index (PPI) fell from 138.3 to 136.3 during April-May timeframe, indicated an overall market dullness.
For the Quarter Ending March 2023
North America
The price of Silica (Glass Grade) FOB in New York, USA, increased by 2% in January 2023 due to inflationary pressure. However, the market situation remained stable, and supplies and demand were moderate. In February and March, prices remained unchanged as traders stopped raising their offers due to the already high input cost and inflationary pressure in the country. Despite marginal improvements in demand from downstream buyers, the pace of economic recovery has been slowed by high inflation. Overall, the market remained stable with moderate supply and demand.
Asia
The Silica prices remained stable in March 2023 in China and India due to stable supply and demand. In January, there was a marginal price increase in China and a significant increase in India. In China and India, the price increase was due to the traders raising their offers due to moderate improvement in demand from the downstream market. The market situation was stable in China and bullish in India. The supplies remained moderate to stable, while demand was low in China and moderate in India. The domestic construction sector in India showed a marginal improvement in demand due to seasonal phenomena.
Europe
Silica sand prices remained stable at USD 61/MT FOB Hamburg, Germany, for March and February 2023 due to low demand from the domestic market despite ample supply. Regional freight charges remained high, and inflation was a driving factor for this price trend. In January 2023, prices increased by 1.7% due to partial improvement in demand amidst depleted inventories caused by the winter season. However, demand remained low due to the economic slowdown despite the threat of recession falling. The market situation was bullish, and supply remained stable throughout.
Slowed demand amidst ample product availability fluctuated the price of Silica in the US market during October. However, inflation remained a matter of concern. Product availability remained ample enough to satisfy the overall need of the country as well as the regional market. A smooth flow of cargo was observed with no sign of disturbances. A marginal fall in demand from the silicate manufacturers has been observed while regular buyers kept on purchasing cargo. Furthermore, for the rest of the month of Q4 2022, prices remained unchanged at USD 52/MT.
Marginal price improvement was observed for Silica in the China market during November 2022, owing to disturbances in domestic trade activities, due to rising pandemic-related uncertainties, which later remained unchanged at USD 55/MT for the rest of the quarter. Supplies remained a major factor behind this price movement in the Chinese market during this quarter, while imports were getting cheaper month over month. Slowed demand from the domestic construction sector was driving the price trend previously, while traders were resisting any negative price revision. Rising pandemic cases in the country injected pessimism among domestic traders.
Slowed economic activities and wavering offtakes have been a major concern for the European market, while eased energy prices supported the price downtrend during November 2022, which later remained unchanged for the rest of the quarter. A smooth flow of cargo was observed throughout the European market during the month of October 2022. Demand remained rangebound while slowed construction sector affected the demand dynamics for the product. Furthermore, the silicate market also remained dull, supporting this pricing dynamics. The price of Silica was assessed at USD 60/MT during November after falling by around 1.6%.
