European Aluminosilicate Prices Decline in July, Contrasting with Stable Market Conditions in Asia

In July 2024, the global Aluminosilicate market exhibited diverging trends, with prices declining in Europe while remaining stable in Asia. In Asia, moderate demand from downstream industries, such as ceramics and construction, supported market stability despite a slowdown in these sectors. In contrast, the European market experienced a downward trajectory due to lackluster demand and high inventory levels. Supply chain interruptions along key trade routes, persistent geopolitical tensions, and congestion at Asian ports further negatively impacted market dynamics. As a result, the price of Chinese Aluminosilicate FOB Shandong remained unchanged, while German Aluminosilicate FD Hamburg prices declined by 1% during this period. 

The depreciation observed in the European Aluminosilicate market in July 2024 can be primarily attributed to lackluster demand from downstream sectors. In Germany, industrial activity continued to decline, although the rate of decline eased for the third consecutive month. Manufacturers faced cost pressures due to weak domestic demand, which limited their ability to adjust product prices despite rising production costs. Within construction supply chains, weak demand led to improved lead times for building materials and products like Aluminosilicate, while intense competition among suppliers exerted downward pressure on input costs. Additionally, lackluster overseas demand for Aluminosilicate further impacted the pricing trajectory this month. 

The Chinese Aluminosilicate market remained stable in July due to a balanced supply and demand dynamic. This market was influenced by a sluggish demand recovery in the construction sector, compounded by consistent supply issues. Chinese factory activity slowed, exacerbating economic strain amid a prolonged property sector crisis. Additionally, heavy rainfall and flooding in some areas complicated construction efforts and caused logistical challenges. These adverse conditions led to a slowdown in ongoing projects and hesitance to initiate new ones, reducing demand for Aluminosilicate and reflecting the trend of weakened construction activity in the affected regions. Furthermore, according to the National Bureau of Statistics (NBS), the business activity index for the construction industry fell to 51.2% in July, down 1.1 percentage points from the previous month, underscoring the cooling construction activity. These factors collectively contributed to the stable Aluminosilicate market, as demand constraints balanced out with supply challenges.

According to ChemAnalyst, the price trend for Aluminosilicate in August is expected to mirror the trajectory observed in July, with market dynamics likely remaining consistent. The European market is anticipated to continue its bearish outlook due to ongoing weak demand. In China, seasonal factors, particularly the impact of the monsoon season, may influence the construction market and, consequently, the demand for Aluminosilicate. Additionally, port congestions and supply constraints on major trade routes are expected to further affect price dynamics.