Feeble Demand Subdues the Sodium Silicate Market in Europe

The price of Sodium Silicate fell in March 2023 as a result of reduced construction sector demand in Europe. German exports are being negatively impacted by the weak global economy, but moderate inflation rates are also having a negative impact on consumer spending and construction activity due to diminishing purchasing power and dramatically higher financing costs. Six months in a row have seen an improvement in consumer sentiment, albeit the pace has slowed somewhat from prior months.

On other hand, the Sodium Silicate business climate in France in March 2023 has degraded slightly again. The Sodium Silicate production capacity utilization rate was almost stable in France. As predicted, France's headline inflation rate dropped from 6.3% in February to 5.6% in March. The base effects of energy prices, which increased in March of last year when the war in Ukraine began, are mostly to blame for this drop in inflation. Hence, the rate of energy inflation decreased to 4.9% in March 2023 from 14.1% in February 2023.

The price of the Sodium Silicate dropped, and fewer new orders from both the domestic and overseas markets were received. In addition, the European Central Bank (ECB) hiked interest rates significantly by 50 basis points in response to recent volatility in the banking sector, signaling its readiness to provide liquidity support for banks. As interest rates rise, demand for Sodium Silicate often drops, which might be negative for the global construction industry.

As per ChemAnalyst, the price of Sodium Silicate hovered around USD 319/MT on a FOB Hamburg basis with a depreciation of 3.9% during March 2023.

The Sodium Silicate is likely to decline in the European region again. On the other hand, experts now predict that the German economy will start to improve somewhat in the second half of the year. It is expected that the Sodium Silicate market will likely drop from 2.5% to 3.5% in April 2023. Moreover, in March 2023, the annual inflation rate for the Euro area is projected to be 6.9%, down from 8.5% in February 2023.