In October 2024, the Iron Oxide market in Asia and Europe experienced a notable price decline, primarily due to weakened demand across key downstream sectors such as construction, paints, and coatings. Iron Oxide, extensively used in building materials like cement and concrete within the construction industry, as well as in paints and coatings for automotive applications, faced diminished demand as these sectors grappled with ongoing economic slowdowns. Additionally, a decrease in import demand from the U.S. further pressured prices in Asia and Europe. Consequently, Iron Oxide prices in China dropped by 4% FOB Shanghai, while prices in Germany declined by 2% FOB Hamburg, underscoring the bearish market trend across both regions.

The Iron Oxide market in Asia is heavily influenced by the construction and automotive sectors, with China as the primary driver. Currently, this market faces a downturn due to oversupply and weakened demand. A marked decline in cement sales, directly linked to Iron Oxide demand, has impacted the broader Asian market. For instance, Indonesia reported a 2.9% year-on-year drop in cement sales in September 2024, a trend that continued into October as high costs and economic uncertainties stalled construction projects and reduced investments in new developments. Similarly, data from Vietnam’s Ministry of Construction highlighted significant declines in cement production and sales over the first eight months of 2024, driven by issues like overcapacity, reduced exports, and soft domestic demand. The wider slowdown in Asia’s construction sector indicates a cautious investment environment with lower infrastructure spending, reducing demand for essential construction materials like Iron Oxide.

The Iron Oxide market in Europe is facing a similar downturn as in Asia, primarily due to a prolonged slowdown in the construction sector, particularly in Germany, one of the largest consumers of Iron Oxide in the EU. Germany’s construction industry entered the fourth quarter with further declines in both activity and new orders, with the housing sector experiencing the sharpest contraction. Commercial and civil engineering sectors also saw significant slowdowns. In October 2024, construction activity across all subsectors, including residential, commercial, and civil engineering, sharply declined, triggering a reduction in the demand for building materials and impacting Iron Oxide consumption. The ongoing weakness in the housing and commercial construction sectors, coupled with low investment in new projects, has contributed to the continued decline in Iron Oxide prices across the region.

According to ChemAnalyst, the price of Iron Oxide is expected to experience a slight increase in November and December, following a continuous decline in recent months. Traders may seek to recover prices as supply conditions tighten, leading to a marginal price uptick. Additionally, the festive season could boost demand from downstream industries in both Europe and the US, potentially increasing consumption of Iron Oxide. However, despite these factors, the overall market sentiment is projected to remain relatively subdued through the end of the year.