Prices for Fumed Silica in the U.S. markets performed poorly through the third quarter of 2022 and have been performing the same in the fourth quarter of 2022 due to the sluggish performance of the downstream construction industry. The stable price trend of upstream silicate prices contributed to the downward pricing trend for Fumed Silica in the domestic market. Despite the U.S. market's lower operation rates, the substantial inventory levels in the domestic market helped to decline in product costs. The manufacturers of the product were forced to lower their prices in the domestic market due to end consumers' wait-and-buy decisions brought on by their fear of a recession. The continued weak performance of the downstream construction sector resulted from rising construction costs in the U.S. and weakened demand for Fumed Silica.

The poor performance of the downstream automotive sector in the U.S. is one of the primary reasons for the reducing price trend of Fumed Silica. The U.S. market imports much Fumed Silica from Europe and China. The weak construction sector caused by high inflation rates and severe Covid-19 restrictions in Europe and China, respectively, have been the primary reason behind Fumed Silica's import prices weakening to the U.S. market. Meanwhile, the poor performance of the downstream construction sector in importing countries like Mexico further weakened the demand abetting the price drop in the U.S. market.

According to ChemAnalyst, for the rest of Q4, the costs are expected to continue to ease due to the predicted sluggish demand over the holiday season and year-end destocking in the U.S. market. The forecast of Fumed Silica prices for 2023 looks weak as the recovery of the downstream construction sector in the U.S. and the exporting European countries such as Germany, and the U.K. is likely to occur only during the second quarter of 2023.