Global AluminoSilicate Prices Hold Strong Amid Growing Business Activity and Rising Demand

The price of AluminoSilicate remained robust, primarily because business activity experienced growth over a year in August. This growth was supported by more stable demand conditions, which allowed companies to increase their output. However, despite these positive developments, certain challenges persisted, including high inflation rates and load shedding, hampered further growth. The South Africa Purchasing Managers' Index (PMI) for August provided encouraging signs of a turnaround in the private sector economy during the third quarter. Companies reported increased output for the first time in a year, indicating a notable improvement in economic conditions. While inflationary pressures continued to affect customer spending power in various sectors, there were indications that order books might be starting to show signs of improvement. This prompted firms to undertake concerted expansion efforts, demonstrating a sense of optimism and confidence in the market's potential for growth. Overall, the strength in the price of AluminoSilicate in August was underpinned by the positive shifts in business activity and demand conditions despite ongoing inflation and power supply issues.

As per ChemAnalyst, the cost of AluminoSilicate was hovering around USD 860/MT on a FOB Durban basis with a monthly inclination of 3.6% during August 2023.

On the other hand, the US AluminoSilicate prices followed the same price pattern primarily driven by elevated labor costs and inflation in construction materials. Price increases were slightly more prevalent compared to the previous month. Domestic market merchants engaged in restocking AluminoSilicate in anticipation of future demand conditions. The price incline was also influenced by heightened demand from potential customers and constrained stock availability to meet domestic needs. Furthermore, employment levels in the construction sector continued to rise in August.

In India, the price of AluminoSilicate exhibited an upward trend this month, primarily driven by a slight improvement in procurement activities. Additionally, the limited availability of the product in the market prompted merchants to restock in preparation for the upcoming festive season. In India, the Purchasing Managers' Index (PMI) indicated a robust improvement in manufacturing sector conditions during August. New orders and output increased at the quickest rates in nearly three years, reflecting a healthy demand environment and favorable market conditions. These positive factors encouraged Indian manufacturers to increase their production levels. The combination of increased procurement activities, limited product availability, and a strong manufacturing sector in India contributed to the upward trend in AluminoSilicate prices for the month.

It is anticipated that the AluminoSilicate product will experience an upward trend in the South African, US, and Indian markets due to improvements in the construction industry. South African companies hope for economic growth in the coming months, cooling inflation pressure, and reduced load shedding, which is expected to drive increased demand for AluminoSilicate.