Global Potassium Silicate Prices Plunge in July 2024 Amid Weak Demand in Europe and Asia

In July 2024, the Potassium Silicate market experienced a declining price trend across the global markets, especially in Europe and Asia. In Asia, weak demand for Potassium Silicate from downstream industries such as ceramics, glass, and construction contributed to market instability, due to a slowdown in these sectors in key Asian markets, particularly China. Meanwhile, the European market also faced a downward trend due to the low cost of imported materials and sluggish downstream demand in the region. Supply chain disruptions along key trade routes, ongoing geopolitical tensions, and congestion at Asian ports further exacerbated market challenges. Consequently, the price of Chinese Potassium Silicate glass grade Spot Ex-Shenzhen fell by 2.8%, while German Potassium Silicate glass grade DDP Hamburg similarly declined by 2.8% this month.

The depreciation in the European Potassium Silicate market can be largely attributed to subdued demand from the downstream construction sector. Further, the reduced cost of imported materials from Asia has contributed to the downward trend in the region. In Germany, industrial activity continued to contract, though the rate of decline slowed for the third consecutive month. Furthermore, market players faced cost pressures due to weak domestic demand, which restricted their ability to adjust product prices despite increasing production costs. In construction supply chains, weak demand led to shorter lead times for materials and products like Potassium Silicate, while intense competition among suppliers further drove down input costs.

Similarly, the Asian Potassium Silicate market experienced a downward trend this month, driven by sluggish demand in the construction sector and ongoing supply challenges. In China, a major market in the region, a slowdown in factory activity intensified economic strain, particularly amidst a prolonged property sector crisis. Further, downstream construction units primarily engaged in on-demand purchasing, while speculative market demand weakened, leading to sluggish shipments. The market is expected to experience weak price consolidation for construction materials this week, exacerbated by heavy rains in South and Central China.  These adverse conditions caused delays in ongoing projects and reluctance to start new ones, leading to reduced demand for Potassium Silicate and reflecting the broader trend of weakened construction activity in the affected regions. Furthermore, as per the National Bureau of Statistics (NBS) report, the business activity index for the construction industry declined to 51.2% in July 2024, down by 1.1 percentage points from the previous month, highlighting the cooling construction sector.

As per ChemAnalyst, the price trend for Potassium Silicate in August is anticipated to follow a similar pattern to that observed in July, with market dynamics remaining bearish. The European market is projected to maintain its bearish outlook due to persistently weak demand. Meanwhile, in China, seasonal factors, especially the effects of the monsoon season, may impact the construction sector, leading to fluctuations in demand for Potassium Silicate. Furthermore, ongoing port congestion and supply disturbances along key trade routes are expected to continue influencing price dynamics.