For the Quarter Ending June 2023
North America
The North American Sodium Metasilicate Pentahydrate market experienced fluctuations during the second quarter of 2023, influenced by uncertain market outlook and fluctuating feedstock prices. Demand fundamentals for various commodities in the US market were constantly changing due to unclear crude futures and rising interest rates.
While supplies for the product remained stable, there were minor availability hiccups during the mid-quarter that affected prices temporarily. Rising production costs contributed to the increasing price trend in May, which later eased in June 2023. The economic slowdown was a major concern for domestic players, as indicated by FRED, with the Producer Price Index for Industrial Chemicals showing a continuous downward trend from April to June 2023, settling around 309.771 in June 2023.
APAC
In June 2023, Sodium Metasilicate Pentahydrate prices declined in the Chinese market due to ample supplies and low demand from the international market. The co-product sodium silicate also experienced a decline in demand from downstream buyers. China's economic situation, marked by high inflation and prolonged economic dullness, contributed to reduced demand for various commodities, including Sodium Metasilicate Pentahydrate. Internal issues in the country, such as the violence in France, further affected market sentiments. Additionally, Germany's recession and the UK's economic uncertainty influenced overall market sentiments, resulting in reduced demand for the product. Despite high regional freight charges, they did not significantly impact the product's prices. In May 2023, Sodium Metasilicate Pentahydrate prices experienced a significant decline due to cheaper imports from Asian countries and decreased demand following the threat of a lockdown. The product's supply remained ample to support the overall price downtrend, while demand remained low due to the impending threat of another wave of lockdown in the country. In April 2023, the price of Sodium Metasilicate Pentahydrate fell due to low demand in the Chinese market and ample product availability. The decline was influenced by China's economic situation, with the PMI index falling marginally. The Indian market also witnessed a decline in prices in June 2023, driven by low domestic demand and ample product availability. Heavy seasonal rain and floods further impacted consumption in certain areas. Demand remained low due to ongoing monsoon season and traders' reluctance to make purchases. In April 2023, the price of Sodium Metasilicate Pentahydrate in the Indian market declined again due to smooth cargo flow and ample product availability, despite a decline in manufacturing activities indicated by the IIP index. Overall, the market sentiment remained bearish with high supply and low demand for the product in all instances.
Europe
Based on the recent assessment, the Sodium Metasilicate Pentahydrate prices witnessed a decline during Q2 2023 due to low domestic demand and surplus stocks in the region. European key players grappled with high inflationary pressure and sluggish consumer demand, leading to reduced demand for various commodities, including Sodium Metasilicate Pentahydrate, and influencing the product's pricing dynamics. Moreover, internal issues in certain nations, such as the violence in France, had a ripple effect on regional trade activities. Notably, key economists highlighted Germany's descent into recession during the mid of the quarter and the UK's precarious economic situation. Consequently, overall market sentiments remained subdued throughout the quarter, resulting in reduced demand for Sodium Metasilicate Pentahydrate from downstream industries. Although regional freight charges remained elevated during this period, they did not significantly impact the prices of Sodium Metasilicate Pentahydrate.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, North America experienced moderate to low demand for Sodium Metasilicate Pentahydrate. This was mainly due to slow economic activity, despite production continuing without any interruptions. Although the construction sector partially improved by the end of the quarter, it still faced inflationary pressure. Further, labor shortage also restricted the actual growth in demand from the downstream industries. The FED's frequent price revisions on domestic interest rates were also contributing to economic concerns and affecting demand for the product.
Asia
For Sodium Metasilicate Pentahydrate, prices decreased in both Chinese and Indian markets due to low demand and oversupply. Production activities remained strong in both countries, but the anticipated improvement in the Chinese economy did not materialize. This led to an abundance of products in the market and cheaper imports from China and South Korea. The decrease in overseas demand also contributed to the decline in prices. In both markets, supplies remained stable, and no notable disturbances in the supply chain were observed. The market situation for Sodium Metasilicate Pentahydrate was bearish, and the demand remained low from the downstream procurers.
Europe
Due to the Russia-Ukraine war, the European economy has performed below expectations, impacting regional economic activities. Data reveals that demand for Sodium Metasilicate Pentahydrate from the domestic automotive sector has remained low, while other sectors, such as construction and textiles, have also experienced a seasonal slowdown. Despite supply chain disruptions caused by snow, supplies remained stable to firm, and the narrow demand-supply gap supported a downward price trend. The reduced threat of a recession generated optimism for future demand.
For the Quarter Ending December 2022
North America
This quarter, the price of Sodium Metasilicate Pentahydrate in North America showcased a falling price trend with limited trading activities. The demand for the product from the downstream cleaning industries, including soaps and detergents, remains affected by declining interest from the supplier’s end. Demand remained low throughout the quarter; however, niche buyers kept their procurement stable in the meantime towards the end of the quarter. Furthermore, slowed economic activities and seasonal lull affected the overall market sentiments, and procurers suspended bulk procurement for November and December 2022. Prolonged dullness in demand in the regional market led to weak trading fundamentals of Sodium Metasilicate Pentahydrate. Freight charges also declined, along with lower transportation charges and sufficient container availability.
Asia Pacific
In the Asia-Pacific region, the Sodium Metasilicate Pentahydrate market remained weak in October due to adequate inventories among the enterprises. In the Chinese market, dealers had sufficient stocks of the commodity to meet all domestic and overseas demands. The general demand-supply fundamentals in the Chinese market were also impacted by low purchasing activity and feeble market fundamentals. However, the market rose in November due to higher bidding for the product and demand exceeding the supply. In Nov, the price of Sodium Metasilicate Pentahydrate in China surged to USD 484/ton FOB Qingdao. The exports from China to India also surged in Nov with the revision in the price trend for the overseas market.
Europe
This quarter, the Sodium Metasilicate Pentahydrate market showcased a falling price trend when compared with the previous one. Demand fundamentals for the product declined from the downstream cleaning industries as the economic activity of the region struggled to gain momentum. The regional economic slowdown and wavering offtakes due to lower product bidding, along with rising product inventories, affected the overall price trend. Trading activities in the European region declined, and suppliers offered discounts on bulk purchases. Declining freight charges and adequate container availability eased the purchasing, and the market remained sufficient with product supply.
