European Potassium Silicate Makers See Price Upsurge Amidst Asia’s Mixed Trends

In May 2024, the global Potassium Silicate market experienced significant price fluctuations. European prices increased, while the Asian market displayed mixed trends. Various factors influencing supply and demand contributed to this regional price variation. In Asia, particularly in China and South Korea, Potassium Silicate prices fell due to weak demand from the glass, coating, and construction sector despite favorable weather conditions for construction, while the prices remained stable in India. Global demand for Potassium Silicate was generally sluggish during this period. Supply chain disruptions, geopolitical tensions, and economic challenges in Europe also affected price trends. In China, seasonal factors and reduced construction activity impacted the demand for Potassium Silicate. These conditions led to price fluctuations, including a 6% decrease in Potassium Silicate glass grade Spot Ex-Shenzhen (China) and an 8% depreciation in the South Korean market for Potassium Silicate glass grade Ex-Bhiwani. Conversely, the European market experienced a 2% increase for Potassium Silicate glass grade DDP Hamburg (Germany).

The European market for Potassium Silicate experienced a positive trend this month as demand remained stable while inventory levels decreased. Further, the rising cost of imported materials, driven by increased freight rates, contributed to higher prices in the regional market. The prolonged downturn in Eurozone manufacturing showed signs of easing, with new orders declining at their slowest rate in two years, boosting business confidence.  Supply disruptions in Europe, exacerbated by rain and flooding in Germany, resulted in evacuations in the southern regions. These conditions further strained central European supply lines and halted transport along sections of the Rhine River, contributing to higher costs for Potassium Silicate. The market dynamics were further influenced by macroeconomic factors, notably a projected increase in Euro area annual inflation to 2.6% in May 2024 as per Eurostat data, which likely contributed to the market conditions shaping the European region's Potassium Silicate market.

Meanwhile, the Asian Potassium Silicate market displayed mixed trends, with China and South Korea witnessing a downshift while the Indian market remained stable. In China, the Potassium Silicate market experienced a depreciation due to weak demand from downstream industries. This price drop was influenced by sluggish demand recovery in the construction sector, high enterprise inventories, and an oversupply pattern that hindered price growth. Furthermore, factory activity in China slowed more than anticipated in May, adding strain to an economy already dealing with a prolonged property sector crisis.  The primary reason for the slowdown was a reduction in output, as evidenced by weaker new orders and export orders, signaling subdued demand. Conversely, the Indian market showed strong demand from downstream industries, driven by robust infrastructure demand. Sufficient stocks prompted traders to keep Potassium Silicate prices stable for the month.