For the Quarter Ending December 2022
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%.
For the Quarter Ending September 2022
Silica Price showcased mixed market sentiments in North America during Q3 2022. As per the data, the price of Silica Sand remained unchanged throughout the quarter across the Canadian market. On the other side, a marginal rise in price trend was observed for the USA during the final month of the quarter. This price increment was primarily driven by rising domestic freight charges and consistently firm inflationary pressure all across the regional market. High gasoline prices also influenced domestic transportation expenses, which were exacerbated by a steep rise in energy values. Silica Sand prices were assessed at around USD 53/MT during September 2022.
Major Asian markets showcased a similar sentiment during this quarter, owing to parallel and in-line demand from the regional niche buyers. As per the insights, demand for the product remained firm in the Indian market throughout the quarter, which eventually led to a rise in its price by the end of the quarter. On the other side, Chinese players heard battling restricted economic activities due to pandemic-related uncertainties amidst slowed demand from domestic buyers. However, demand rose eventually in the Chinese market, too, due to a hike in demand from the silicate manufacturers, where the price was assessed around USD 55/MT during the final month of the quarter.
The rising cost of energy, under the expectation of high demand from the domestic market amidst halted supplies from Russia, are the factors that affected the European market during this quarter. Slowed economic growth and a steep fall in consumption eventually pushed the European market toward a recession. Silica Sand price heard declined in the Belgian market during the final month of the quarter. On the other side, prices remained unchanged throughout the quarter in the German market during a similar timeframe and hovered around USD 61/MT. Additionally, the country’s slow demand from the construction sector also contributed to this price change.
For the Quarter Ending June 2022
Domestic transportation costs have increased in the US market due to rising gas prices, generating concerns about inflation and putting pressure on trader margins. However, a sharp increase in the cost of construction materials has discouraged builders from acquiring further cargoes in the US construction sector. Despite these obstacles, silica price has stayed consistent and unchanged throughout the second quarter of 2022 after seeing a slight increase in April as a result of oversupply of the commodity on the domestic market. The stagflation situation and the slowdown in economic activity also threatened traders, who were advised to maintain steady pricing to maintain offtakes.
The data shows the price remained unchanged during the first two months on the back of ample availability for the product amid stable demand from the domestic market, and a small price variation was seen in India during June 2022, demonstrating the Asian market's overall stability in supply dynamics during this quarter. Although the product's core demand factors have improved from the previous quarter, prices remained stable throughout this time. But procurers have also felt the effects of inflation, as they have had to deal with increased fuel prices that have strained their finances. Pandemic in China also slowed down the constriction activities in the country, which eventually reduced the offtake for several products, including silica in the domestic market.
Due to steady domestic market demand and a surplus of stock, the price of silica in Germany remained consistent throughout the first few months. According to market sources, even though the ongoing Russia-Ukraine conflict has caused the prices of several commodities to rise, Silica prices have remained consistent due to the plenty of the product's stock in the local market. According to market sources consulted by ChemAnalyst, certain European players have been forced to boost their product prices due to growing domestic freight costs. Operators of forges continued to be concerned about the rising cost of natural gas due to the war between Russia and Ukraine.
For the Quarter Ending March 2022
Owing to stable demand from the local market, the North American Silicate market witnessed frequent ups and downs. As global economic activities regained from the pandemic's critical phase, demand for the commodity held steady in the downstream paper and construction sectors. However, the rapid escalation of the Russia-Ukraine dispute hampered overall flow and brought uncertainty into the global market. Manufacturers were pushed to increase their product prices to maintain margins due to trade disruptions and growing wage inflation on consumers thanks to increasing crude oil costs. As per the ChemAnalyst assessment, Silica prices were assessed around USD 64.3/MT during February in the USA.
Silica prices have been rising in the Asian market for some time, owing to strong offtakes and insufficient supplies from regional market. Exporting countries such as China, on the other hand, experienced disruption in Q4 2021 as a result of a dual energy policy issue, which coincided with the rising threat of the Omicron version. However, the threat of Omicron turned out to be less severe than expected, therefore no such extreme effects were noticed. Furthermore, demand fundamentals for the commodity from the domestic construction sector have been rising due to seasonal offtakes, while the global market's overall pricing dynamics have been escalating due to the Russia-Ukraine conflict. Furthermore, the ongoing confrontation between Russia and Ukraine has pushed up the price of crude oil, putting inflationary pressure on global procurers. Silica price was assessed around USD 54.3/MT during February.
During the months of January and February, the price of Silica increased by almost 2-3%. The conflict between Russia and Ukraine was the prime factor of the problem. Germany's reliance on Russia for petroleum and other energy sources resulted in a negative economic curve. Following the escalation of the conflict between the two countries, natural gas costs skyrocketed, explaining the spike in Silica prices. Furthermore, the resurgence of the omicron virus in Germany resulted in the enforcement of a lockdown, which had an impact on the trade sector. The battle has also pushed up the price of crude oil, which has had an impact on the worldwide market. Silica price was hovering around USD 60.2/MT during February 2022.