A recent analysis by ChemAnalyst shows a significant hike in the price of Fumed Silica entering June 2022. As per the data, prices of Fumed Silica have risen from 0.5% to 1.7% across the Asian market, varying from country-over-country.

As per the data, China and India have witnessed a rise of around 0.6% and 0.4% across the domestic market, owing to stable offtakes from the downstream players amidst rising feedstock prices. Recently, China has revived from the prolonged pandemic-related uncertainties, injecting optimism across the regional market. Being an exporter of Fumed Silica, the country’s revival from the pandemic also influences the regional supply dynamics.

On the other side, due to the pandemic in China, the burden of supplies was shifted from China to Japan, that had led to a hike of around 1.2% in the product’s prices. As per the market insights, Japanese players were anxious about the supplies, and some global players raised their offers for future purchases.

Cabot, a global Key player of Fumed Silica, has raised their offers by 15% for the global market, effective from 1st July 2022. This announcement has pressured the global market dynamics, where prices have already been firm for a long time.

ChemAnalyst data shows a climb of around 1.7% across the South Korean market in the meantime, which was the highest among all mentioned Asian economies. This price hike was primarily driven by constraints in supply dynamics, under the influence of rising input costs amidst consistently rising transportation expenses.

As per the ChemAnalyst analysis, prices are likely to rise further in the coming weeks, as current market scenarios are pointing towards a steep rise only. In addition, like Cabot, other key players may also try to raise their offers to sustain their margins.