Weather Disruptions and Weak Construction Activity Affect Sodium Silicate Market in China

In June 2024, the Chinese market for Sodium Silicate experienced stable prices despite a notable decline in demand, particularly influenced by adverse weather conditions in South China and a corresponding slowdown in construction activities. Continued heavy rains impacted construction projects in South China, resulting in a business activity index of 52.3 percent for the construction sector, 2.1 percentage points lower than in May. China’s non-manufacturing activity expanded in June, with its purchasing managers' index (PMI) at 50.5, according to the National Bureau of Statistics (NBS).

South China has been particularly affected by heavy rainfall throughout June 2024, which has significantly hampered construction activities in the region. This climatic disruption has had a cascading effect on the demand for various construction-related materials, including Sodium Silicate. The chemical, widely used in the construction industry for applications such as concrete and cement production, has seen a marked decrease in consumption as construction projects faced delays and cancellations due to inclement weather.

The prolonged heavy rainfall has led to flooding in some areas, further complicating construction efforts and causing logistical challenges. This situation has resulted in a slowdown in the progress of ongoing projects and a hesitance to initiate new ones. Consequently, the demand for Sodium Silicate has diminished, reflecting the broader trend of weakened construction activity across the affected regions.

Despite the weakened demand, the supply of Sodium Silicate in China has remained sufficient, contributing to the stability of its prices. Manufacturers and suppliers have been able to maintain a steady output, ensuring that the market is adequately stocked. This balance between supply and demand has played a crucial role in preventing price fluctuations, resulting in stable market conditions for Sodium Silicate.

The stability in prices is also indicative of the market's resilience and its ability to adapt to external pressures. Suppliers have managed to navigate the challenges posed by the adverse weather conditions, ensuring that production and distribution channels remain functional. This has helped to avoid any significant supply shortages, which could have otherwise led to price volatility.

The construction sector's reduced activity has had a direct impact on the cement industry, one of the primary consumers of Sodium Silicate. The demand for cement has been low, reflecting the broader slowdown in construction projects. As a result, the consumption of Sodium Silicate in the cement industry has also seen a decline.

According to ChemAnalyst, the cost of Sodium Silicate is likely to decline in July due to the low activity in the construction sector. The weather bureau reported that two typhoons could make landfall in mainland China in July which led to a decline the construction activity and demand for Sodium Silicate.