For the Quarter Ending December 2022
The fourth quarter of 2022 saw a slight movement in the Zirconium Silicate market due to declining demand from downstream sectors and declining production costs globally. The central bank's action helped to reduce the significant inflationary pressure that had been affecting the USA. However, the FED's high-interest rate, which ultimately caused a decline in the nation's economic activity, was the cause of this relaxation in inflationary pressure. As a result, there was less demand for the product from the construction sector in the USA, contributing to the price drop.
The price of Zirconium Silicate decreased in the Asian market this month due to the slowdown in economic activity brought on by the global pandemic and recessionary fear that pervaded the entire globe. According to the data, the price of Chinese Zirconium silicate decreased by about 5.7% during this quarter and was almost USD 2460/MT (FOB) in China in December 2022. Major importing nations also benefited from this drop as dealers there were able to purchase cheaper cargoes from the global vendor. The festive season in October and November increased demand from the domestic market, which helped the Indian market do better than other economies.
The effects of the Russo-Ukrainian War continued to plague Europe, making it difficult for the economy to recover quickly. According to the data, decreased demand for Zirconium Silicate in the construction industries affected the market's pricing trend for the commodity. Natural gas price reductions also prevented upstream commodity prices from rising and helped companies' margins. Nevertheless, natural gas prices remained high despite market easing, placing pressure on producer margins. The price of Zirconium Silicate was assessed at USD 2900/MT in December 2022 in Germany.
For the Quarter Ending September 2022
The North American Zirconium Silicate market witnessed a downward price trajectory during Q3 2022, supported by low demand from the downstream industries amidst adequate inventories. As per the data, in order to cool down inflation, Fed raised the interest rate, eventually leading to a slowdown in the economic activities of the country. Thus, post these frequent revisions in rates, a significant slowdown in economic activities was observed, which also includes dullness in the construction sector. Furthermore, rising natural gas prices also remained a matter of concern for the key players, as it was affecting the costs of production and eventually pressuring their profit margins.
In Asia, Zirconium Silicate prices heard tumbling throughout the quarter owing to stockpiled inventories and low demand from the regional market. Despite the fact that India was getting ready for its annual festivities, demand fundamentals from the construction sector remained low, and statistics show that economic output for the Indian market remained unexpectedly low during these three months. On the other side, pandemic-related disturbances have been affecting the Chinese market for a long time, and the construction sector was among the most affected sector. Thus, the Zirconium Silicate price declined in China and hovered around USD 2810/MT during September 2022.
Wavering offtakes have made a negative impact on Zirconium Silicate prices in the European market during Q3 2022. As per the data, Zirconium Silicate prices kept on tumbling throughout the quarter on the back of low demand fundamentals from the downstream construction sector amidst ample product availability in the country. Furthermore, under the influence of low demand and stable production rates, convertors in Poland were offering their cargoes at discounts in order to sustain offtakes. Thus, post witnessing a consistent decline for three months, Zirconium Silicate prices were heard hovering around USD 3230/MT in Germany during September.