Sodium Silicate Market Plunges in February 2023, Concerns Global Key Players

Sodium Silicate prices decreased in Europe and the US due to the weak demand from the downstream construction industries.

The construction industries in Europe have been significantly impacted by increased materials costs and fears of a recession, all of which have the potential to significantly lower property prices. This Sodium Silicate plays a vital role in the global construction, paints, and other key driving sectors. Companies are reducing the scope of their construction projects in response to rising construction costs to account for inflation. Sodium Silicate orders from the end-use industry have fallen since the beginning of this year and will continue to fall in March 2023 as a result of lower consumer interest. Despite the ongoing demand pressure brought on by rising interest rates and skyrocketing prices for other construction commodities, including Sodium Silicate, the European construction industry remained in contraction territory. Rising construction costs have impacted the residential and commercial construction markets. For instance, there has been a significant drop in the number of new home orders and project cancellations in Germany. The Sodium Silicate market in Europe is expected to continue to show decline price trend in the upcoming months due to the above-mentioned reasons.

In the US, the construction industry remains contracted mainly due to the slump in residential construction. Project financing costs are higher as a result of rising interest rates, and construction material costs have increased due to inflation in the US. Further, project delays have resulted in longer lead times as a result of a lack of skilled workers and disruptions in the supply chain. Future construction output may be limited by an aging workforce and a lack of skilled workers. On the other hand, the cheap imports from the overseas market also contributed to the declining price trend of Sodium Silicate in the US domestic market.

As per experts, the Sodium Silicate market is expected to contract in the upcoming months due to low trading activities in the construction sector. With rising construction prices, many firms are facing potential collapse and a consistent decline in commercial construction activities. The market for Sodium Silicate, as well as other commodity markets, will continue to be impacted by high-interest rates. It is expected that the Sodium Silicate price is likely to decline by 2% in February due to the weak construction activities in the region.