In October, the price of Zirconium Silicate continued its downward trajectory, primarily because of weak demand from the downstream construction industry in the European region. The production levels within Germany's manufacturing sector were under pressure due to an extended period of decreased new orders in October. To sustain output, manufacturers often relied on clearing backlogs of work. Manufacturers also aimed to reduce their inventory levels at the beginning of the fourth quarter. Several factors influenced this decision, including weaker customer demand, financial pressures, and improved material availability. This cautious approach was attributed to an environment of uncertainty and elevated interest rates. Market participants have expressed concerns that the situation is continuously deteriorating, with increasing projects failing due to higher interest rates and elevated construction prices.

On the other hand, the Polish Zirconium Silicate market also followed the same price pattern throughout October 2023. The continuous and steep decline in fresh work orders resulted in the most rapid reduction in production at Polish manufacturers. However, in addition to the significant decrease in new orders for Zirconium Silicate, there was a more pronounced decline in backlogs of work and an increase in finished goods inventories. These factors collectively suggest that there is the potential for further reductions in output in the upcoming months.

During October, supply chains showed ongoing improvement, with average lead times decreasing for the sixth consecutive month. Companies noted that excess stocks of Zirconium Silicate were present at their suppliers. Further, there was a minimal requirement for hiring additional workers, and manufacturers indicated a reduction in staffing levels for the fourth time in the past five months.

According to ChemAnalyst, the cost of Zirconium Silicate was settled at USD 2265/MT on an FD Hamburg basis with a monthly depreciation of 5% at the beginning of the fourth quarter of 2023. This reflects the pricing trend for Zirconium Silicate in the market.

The state of the construction industry in October presents a potential scenario where the industry's performance may continue to worsen for the remainder of the year. This downward trend in the construction sector could have several implications, including a potential decrease in the usage of Zirconium Silicate. This decrease in usage may result from reduced construction activities, project cancellations, or a slowdown in infrastructure development, all of which can impact the demand for materials like Zirconium Silicate. It's important to note that changes in the construction industry can have a cascading effect on various related industries and materials, making it a significant factor in the price dynamics of materials like Zirconium Silicate.