Weak Demand Drives Down the Aluminosilicate Prices in Europe and MEA

The price of AluminoSilicate exhibited a modest decrease in September 2023, following a period of growth in August 2023 in both the South Africa and Europe regions. This price fluctuation can be attributed to a combination of factors, including rising interest rates, waning consumer confidence, instances of load shedding, and other contributing elements.

The price of AluminoSilicate showed a declining trend in September 2023 after increasing over the previous month. In September 2023, South Africa teetered on the edge between growth and contraction as various economic indicators sent mixed signals. Companies in the country reduced their output and inventories during this period. The data for September showed that the total output of AluminoSilicate had declined again, reversing the expansion seen in the previous month, which had marked the first growth in a year. New order volumes remained largely unchanged, following only a slight decrease in August. Despite challenges such as inflation and power supply interruptions (load shedding) dampening sales for AluminoSilicate in certain cases and weak conditions in external markets impacting export orders. Some companies reported a recovery in new business, which they attributed to gaining new customers. Overall, South Africa's economic landscape in September 2023 was marked by a delicate balance between factors contributing to expansion and contraction, making it a complex and nuanced situation for businesses and policymakers alike.

Conversely, the AluminoSilicate price witnessed a decrease, mainly linked to a reduction in new orders, a consequence primarily of elevated interest rates in the German market. In September, both input costs and output charges recorded further declines. Furthermore, there was a significant drop in backlogs of work at the end of the third quarter. To adapt to this situation, manufacturers adjusted their staffing capacity, resulting in a decrease in factory employment this month. While the rate of job shedding was relatively quick within this sequence, it remained modest. Although the rate of decline was slightly faster compared to August, it indicates that manufacturers of AluminoSilicate were willing to reduce their prices to secure contracts and remain competitive in the market.

As per data, the cost of AluminoSilicate was settled at USD 1069/MT on an FD Hamburg basis with a monthly decline of 5% at the end of the third Quarter of 2023.

The price outlook for AluminoSilicate suggests a potentially mixed pattern in the upcoming months in both regions. This implies that there may be periods of price stability or even slight increases interspersed with periods of decline or stagnation. Market participants should closely monitor these dynamics and adapt their strategies accordingly to navigate the anticipated mixed pricing environment for AluminoSilicate in the coming months.