The price of Silane remained weak in the global market at the end of the second quarter of 2023 due to the low demand from the downstream coating and construction industries. Trade restrictions decreased demand for end products, and sluggish business has impacted Silane's demand. Silanes are widely used in various end-use industries such as the chemical industry, construction, automobile industry, rubber processing, plastic packaging, electrical and electronic industry, pharmaceutical industry, etc.

In the US, at the conclusion of the second quarter, the greater success in finding suitable candidates allowed firms to expand their workforce number in June, despite concerns about the future demand conditions. In the end, Silane coating consumption in the US market decreased due to the weak performance of the coating industry in the construction sector. In addition, major bank failures in the second quarter significantly impacted the US construction and housing market and the broader economy.

In Germany, the Silane coating grade market remained declining in June 2023 due to the new fresh orders from the coating industry being weak, caused by the poor performance of the construction industry. Better supply capacity combined with lower demand inevitably pushed prices down. The decline in construction activity continues with the rise of interest rates in the Euro area, and it continues to accelerate every month in residential and commercial buildings. A lack of new contracts remained the primary factor behind reduced activity, discouraging the firms from buying new materials. Alongside heightened customer uncertainty and still-high building prices, it further strained the demand for construction work, as highlighted by a further steep drop in new orders. However, The cost of Silane in the German market dropped by 1.2% in June 2023.

The manufacturing Purchasing Managers' Index (PMI) in China has dropped below the set threshold, signaling a decrease in production and a lackluster performance from the construction sectors. The pace of market recovery slowed down in June 2023, and there was not enough momentum for prices to rise. Overall, global trading activities stagnated in Q2, and the demand for the product, including Silane, did not increase from domestic and overseas markets. Weak house prices and declining exports have pressured policymakers to support real estate and revive pent-up demand. In addition, due to the impact of rainy weather in many parts of the country in June, the operating rate of construction sites has declined, the demand for building materials has declined, and the demand for Silane in the coating industry has also decreased.

It is expected that the cost of Silane will likely be weak in the H2 of 2023 if the interest rates rise in Europe and the US markets remain subdued by the demand for the product.