In June 2024, the global Zirconium Silicate market exhibited diverging trends, with prices in European countries surging while the Asian market experienced a significant decline. The Asian market downturn was driven by reduced demand, particularly from downstream industries, as the ceramics and construction sectors slowed down, further exacerbated by heavy rainfall in China, which hampered construction activities. In contrast, the European market for Zirconium Silicate saw a positive trajectory marked by moderate demand and decreasing inventory levels. Signs of a downturn in Germany's construction sector began to ease as the second quarter concluded, and manufacturing across the Eurozone showed signs of stabilization with the slowest decline.  Moreover, interruptions in supply chains along key trade routes, persistent geopolitical tensions, and congestion at Asian ports had negative impacts on market dynamics. Consequently, the price of Chinese Zirconium Silicate FOB Shandong dropped by 4%, while German Zirconium Silicate FD Hamburg prices saw a marginal 0.7% decline in this timeframe.

The European market for Zirconium Silicate experienced a positive trend marked by moderate demand from downstream industries amid decreasing inventory levels. However, escalating shipping rates due to congestion and increased demand influencing prices of products like Zirconium Silicate. Producers responded to sluggish demand by adjusting operating rates downward to safeguard profit margins, resulting in reduced product stocks. Additionally, market participants expectations of a continued rise in freight rates from China due to congestion issues at Asian ports, affecting both ends of Asia-Europe trades. Longer voyage times for diverted ships led to a clustering of arrivals, causing delays as European ports struggled to handle increased throughput. These delays have had ripple effects along the trade loop, impacting ports like Singapore as well.

Meanwhile, the Chinese Zirconium Silicate market experienced significant depreciation as prices declined due to weak demand from the downstream ceramics and construction sectors. This downturn in Zirconium Silicate price was driven by slow demand recovery in construction, high inventory levels, and an oversupply issue that restrained price growth. Chinese factory activity slowed, exacerbating economic challenges amid a prolonged property sector crisis. Additionally, heavy rainfall led to flooding in certain areas, hindering construction efforts and causing logistical difficulties. This situation resulted in a slowdown in the progress of ongoing projects and a hesitance to initiate new ones. Consequently, the demand for Zirconium Silicate decreased, reflecting the broader trend of weakened construction activity in the affected regions.  The outlook for the Zirconium Silicate market remains uncertain, with ongoing challenges from weak demand and economic conditions continuing to pose uncertainties.

According to ChemAnalyst, the Zirconium Silicate market in Germany is expected to experience a decreasing price trajectory driven by lackluster demand from the downstream construction sector. Similarly,  the Chinese Zirconium Silicate market is anticipated to face challenges due to the monsoon season, which is expected to impact construction activity adversely.