For the Quarter Ending September 2024
North America
In Q3 2024, the Fly Ash market in North American region experienced a mixed trend, influenced by various significant factors. The initial quarter, the price rose by 12.7% due to increased freight rates, which have driven up the cost of the product. Prices for U.S. imports ticked up 0.1 percent in July, after being unchanged the previous month, the U.S. Bureau of Labor Statistics reported today. Higher nonfuel and fuel prices each contributed to the July. Despite an increase in price, the downstream construction activity only on moderate range in July. Rising interest rates and economic uncertainty are pressuring the U.S. housing market, hinting at a bearish short-term outlook.
The second and third month of quarter declined sharply due to the eased costs for imported materials from China. Demand from the construction sector remained weak due to a tight lending environment for construction projects and declining commercial property values. Meanwhile, ocean freight rates from Asia to the West Coast of North America fell by 15.04% compared to the previous month, reflecting declining demand.
Despite these challenges, the quarter ended with Fly Ash priced at USD 105/MT CFR Louisiana, signaling a persisting negative pricing environment.
APAC
The third quarter of 2024 for Fly Ash pricing in the APAC region has been characterized by stability, with prices holding steady throughout. Several factors have influenced market prices during this period. The balanced supply and demand dynamics, coupled with stable production levels, have contributed to the consistent pricing environment. Additionally, the overall subdued demand from the construction sector, impacted by various challenges such as heavy rainfall, property market struggles, and economic uncertainties, has kept prices unchanged.
In China, which has experienced the maximum price changes, the market trends have followed a similar pattern of stability. Despite facing disruptions such as heavy rains and a slowdown in construction activities, the Fly Ash market in China has remained relatively balanced. Seasonal fluctuations and the ongoing property crisis have influenced pricing trends, with minimal changes recorded compared to the same quarter last year.
The quarter-ending price for Fly Ash in China stands at USD 15/MT FOB Shanghai, reflecting the stable pricing environment that has prevailed throughout Q3 2024.
Europe
The third quarter of 2024 witnessed a significant decline in Fly Ash prices in the European region, with Germany experiencing the most substantial price changes. The market was influenced by several key factors, including weakened demand from the construction sector, surplus supply, and logistical disruptions in shipping routes. The ongoing downturn in new construction projects, coupled with reduced industrial activity and congested ports, contributed to the downward pressure on prices. Additionally, the European Fly Ash market faced challenges from elevated freight costs and economic uncertainties, further dampening demand.
In Germany specifically, the Fly Ash market saw a negative trend, with prices decreasing by 7% from the previous quarter. The correlation in price changes between the first and second half of the quarter was noted at -4%, reflecting a consistent downward trajectory. Despite these challenges, the quarter-ending price for Fly Ash FOB Hamburg in Germany stood at USD 27/MT, underscoring the prevailing negative pricing environment in the region. Plant shutdowns during the quarter further disrupted supply chains, exacerbating the pricing pressures faced by market participants.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Fly Ash market saw a pronounced upward trend in pricing, primarily driven by several key factors. These included increased construction activities, strong demand for construction materials, and rising freight rates. The construction industry experienced substantial job growth and a significant decrease in unemployment, boosting Fly Ash demand. Additionally, global freight charges surged due to higher a demand for ocean freight space and tighter vessel availability, which further inflated import costs.
In the USA, where the most significant price fluctuations occurred, the Fly Ash market exhibited a clear bullish trend. Seasonal construction booms and improved economic conditions contributed to increased purchasing activity, leading to a notable price surge from Q1 2024. Prices rose by 6% quarter-over-quarter, with a significant 17% increase in the first half of Q2 compared to the latter half. This rise highlighted the impact of restocking activities and heightened material demand.
By the end of Q2, Fly Ash prices in the USA reached USD 102/MT CFR Louisiana. This consistent increase reflects robust demand and constrained supply dynamics, with no major plant shutdowns or disruptions reported during the quarter. The overall trend indicates a steadily escalating pricing environment, driven by ongoing construction sector growth and logistical challenges.
APAC
In Q2 2024, the Fly Ash market in the APAC region maintained stable prices, reflecting a balanced supply and demand scenario. This stability was due to moderate inventory levels, consistent manufacturing output, and steady demand from the construction sector. Key factors contributing to this equilibrium included stable coal production, adequate raw material availability, and predictable downstream demand. The absence of major disruptions or plant shutdowns further supported market stability, ensuring a smooth supply chain. In China, the most significant price fluctuations occurred within the region. Increased construction activity following the Spring Festival and a gradual recovery in real estate led to higher Fly Ash consumption. However, these factors were counterbalanced by higher inventories and slower economic activity, resulting in stable prices. Despite economic pressures and a sluggish non-manufacturing PMI, the construction sector's resilience contributed to this steadiness. Compared to Q1 2024, prices in China decreased by 6%, reflecting the market's adjustment to existing stock levels and moderate new orders. A price comparison between the first and second halves of Q2 showed no significant change, confirming the stability trend. The quarter ended with Fly Ash priced at USD 15/MT FOB Shanghai, indicating a stable market environment. This price stability suggests a neutral sentiment with minimal volatility, providing stakeholders with a consistent and predictable market outlook.
Europe
In the second quarter of 2024, Fly Ash prices in the European region continued to decline steadily due to subdued demand and ample supply. The construction sector, a major consumer of Fly Ash, faced significant challenges including high financing costs, regulatory burdens, and economic uncertainty. These issues led to reduced construction activity and, consequently, lower demand for Fly Ash. Suppliers benefited from improved delivery times and greater subcontractor availability, which further contributed to market stability and downward pressure on prices. Although there were some signs of easing in new orders toward the end of the quarter, overall sentiment remained cautious, with no major plant shutdowns reported. Germany experienced the most notable price changes, with construction firms grappling with a persistent decline in new orders and high input costs, exacerbating the weak demand for Fly Ash. The construction PMI remained consistently below the neutral mark, reflecting sluggish market conditions. Seasonal trends offered little relief, as the typically stronger summer months did not significantly boost activity. Fly Ash prices dropped by 9% from the previous quarter and saw a 3% decrease between the first and second halves of the quarter, underscoring the ongoing bearish market sentiment. By the end of the quarter, the price settled at USD 29/MT FOB Hamburg in Germany. This continuous decline highlights a negative pricing environment, reflective of broader economic challenges and the construction sector's persistent struggles.
For the Quarter Ending March 2024
North America
Throughout the first quarter, the price of Fly Ash decreased by contrast in January due to several factors affecting the pricing dynamics. The Arctic Blast of January brought havoc to the USA, causing extreme cold temperatures and widespread disruptions across industries. One major consequence was the temporary closure of the Port of Houston, a critical hub for shipping every other commodity including Fly Ash. A ripple effect of increased demand and limited supply pushed product prices upwards. The scarcity created by supply disruptions coincided with the heightened demand from construction, fuelling a significant price hike in the Fly Ash market during this timeframe.
The rest month of this quarter's price declined as the normalcy in weather conditions and further fall in freight charges all contributed to negative price movement. Despite this, the US market was supported by cheaper imports from overseas, and some merchants stocked up on Fly Ash due to disruptions in the ocean route, leading to scarcity.
Quicker deliveries reportedly reflected a continued normalization of supply chains and sufficient stock holdings at vendors. Additionally, the increasing confidence of construction companies in recent industry developments contributed to market stability.
APAC
In Q1 2024, the Fly Ash pricing dynamics in the APAC region, particularly in China, witnessed fluctuations and a downward trend. The market situation in China was bearish, primarily driven by weakened demand from the downstream construction sector. Despite an increase in thermal power generation, overall market demand experienced a seasonal weakening trend, leading to a gradual decline in Fly Ash prices. The oversupply in the market further contributed to the price decrease. The Fly Ash industry struggled to compensate for the demand gap created by the downturn in the real estate industry, despite some increases in investment and construction of major projects. The local funding situation in China was average, impacting the overall market demand performance. However, it is important to note that the market was influenced by oversupply and weakened demand during this period. In conclusion, the final quarter's price for Fly Ash FOB Shanghai in China was USD 16/MT, reflecting the overall bearish trend and the impact of market dynamics on pricing.
Europe
In the first quarter of 2024, the pricing dynamics of Fly Ash in the European region were influenced by various factors beyond the conventional top three. While the overall trend in pricing was bearish, with a decline in prices, the market situation in Germany stood out with pronounced fluctuations. The construction sector in Germany experienced ongoing decline and uncertainty, leading to reduced demand for construction materials, including Fly Ash. The construction Purchasing Managers' Index (PMI) indicated a sluggish trend, remaining below the limit threshold for an extended period. Moreover, the persistently muted global economy, inflation, and project postponements further dampened demand in the construction and cement sectors. At the close of the first quarter, new orders sustained a sharp decline, hampered by a mix of stringent financial conditions, elevated prices, and market ambiguity. Conversely, both employment and purchasing activity among constructors experienced a slightly swifter decline in March compared to the previous month. The primary factor weighing down total industry activity remained the housing sector, witnessing a significant and slightly accelerated decline in output levels compared to February. Commercial project work also experienced a sharp decrease, albeit at the slowest rate seen in five months, while civil engineering activity displayed renewed weakness. Therefore, the overall sector remained subdued, leading to stagnant demand for Fly Ash.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Fly Ash market experienced a mixed performance. During October, the influx of cheaper imports from overseas, particularly China, played a pivotal role in influencing the surplus. As a consequence, the price of Fly Ash in the US market experienced a notable decline, mirroring a 1.8% drop observed in the Chinese market. Despite the ample availability, the demand for Fly Ash within the domestic market remained lacklustre, intensifying the significant inventory pressure faced by manufacturers.
In November, the North American market experienced a significant rise in Fly Ash prices, primarily driven by a robust and encouraging environment in the downstream construction sector that has been consistent over the past few months. Market sources suggest that the increase in Fly Ash prices can be linked to a state of moderate to low availability, prevailing within a trading environment characterized by healthiness and optimism.
At the end of quarter, the US construction activity demonstrated a moderate pace in December, with housing activity providing crucial support to the industry. Despite higher borrowing costs, construction spending managed to maintain stability, while the manufacturing sector continued to face challenges. The presence of affordable imported cargo from other Asian markets, combined with a consistent inventory, contributed to the decrease in the product's cost in the US market. Additionally, the demand from the downstream sectors market remained subdued, with merchants in the US market operating within existing stock levels. Moreover, the Christmas holidays contributed to a slowdown in demand from potential customers.
APAC
During the fourth quarter of 2023, the Fly Ash market in the APAC region exhibited price stability, primarily influenced by factors such as supply and demand dynamics, along with external market forces. The market maintained a stable supply of Fly Ash, reporting no significant disruptions during this period. However, demand for Fly Ash remained subdued, particularly in the downstream construction sector, as immediate requirements dwindled after substantial procurements and consumption earlier in the year. Despite reaching a record high in thermal power generation in December, market demand experienced a seasonal weakening trend, contributing to the gradual decline in Fly Ash prices. While there has been increased investment and construction in major projects, it proves challenging to compensate for the demand gap created by the downturn in the real estate industry. Additionally, in 2023, as the economy undergoes recovery and development, the local funding situation is relatively average, resulting in an overall market demand performance that is not as robust as the same period last year. The Fly Ash industry is grappling with oversupply, and as costs decrease, the average Fly Ash price is also weakening.
Europe
During October, the price of Fly Ash increased in the European market due to the limited availability of the product. Furthermore, the incline in price was also attributed from slightly recovery from downstream construction industry while the supply in the country was only stable. As a result of these factors, the price of Fly Ash in the European market increased. In November, the face of a generally bearish environment for the construction sector in Europe, the month has witnessed a surprising uptick in Fly Ash prices within the regional market. Despite stagnant demand for the product over the past several months, the market has experienced a notable increase in prices. The industry, however, has not been immune to disruptions, as a rail driver union strike and a port strike in Germany and Belgium have impacted the supply chain to some extent. Nevertheless, the influence of these factors on the prevailing price trend appears to be limited. At the end of quarter, the price declined sharply due to the reduced demand. The persistently muted global economy, ongoing inflation, and the postponement of projects were frequently cited as contributing factors dampening demand in the construction, cement sectors. This absence of fresh work opportunities contributed significantly to the persistent down.
For the Quarter Ending September 2023
North America
In the third quarter of October 2023, the North American Fly Ash market witnessed a bearish trend. In the United States, the price of Fly Ash initially dropped by approximately 1% in the first two months of the quarter. This decline was influenced by multiple factors that collectively exerted downward pressure on the industry. Notably, the influx of cheaper Fly Ash imports from Europe and Canada created a competitive environment, offering cost-effective alternatives to domestic buyers and affecting local suppliers. An important development during this period was the U.S. Environmental Protection Agency's proposed denial of Alabama's permit program for managing coal combustion residuals (Fly Ash) in landfills and surface impoundments. However, in the last month of the quarter, Fly Ash prices stabilized due to consistent demand from the construction sector and a steady domestic supply. Furthermore, the broader U.S. economic landscape showed significant improvement, with manufacturing sectors experiencing recovery. Increased production and rebounding employment figures contributed to a decline in factory input prices. These positive trends marked the third consecutive month of economic growth in the third quarter despite the presence of higher interest rates.
APAC
Throughout the third quarter of October 2023, the APAC region witnessed a notable bearish trend in the Fly Ash market. The Chinese market, in particular, experienced a significant price decline of approximately 5% during the first two months of the quarter, primarily attributed to the adverse impact of typhoon weather and heavy rainfall. Construction conditions in South and East China were unfavorable, leading to sluggish market demand and increased inventory pressure on manufacturers. This resulted in an overall weakened market scenario. The downstream construction industry bore the brunt of extreme weather conditions, with construction sites in South and East China suffering from unfavorable conditions. The imbalance between supply and demand in the Fly Ash market further exacerbated the situation, forcing manufacturers to adopt price reduction and promotional strategies in an effort to stimulate sales. However, the price of Fly Ash stabilized in the last month of the quarter due to a narrower gap between supply and demand. Increased rainfall and the implementation of major events caused a temporary halt in downstream construction activities. Although there was a minor rush of work preceding some holidays, the overall outbound volume saw a slight decline. These factors collectively shaped the Fly Ash market landscape in the APAC region during the third quarter of 2023.
Europe
During the third quarter of 2023, the European Fly Ash market witnessed a bearish trend. In Germany, Fly Ash prices saw a notable 3% decline during the initial two months of the quarter. This decline was primarily driven by low demand, which was significantly impacted by the European Central Bank's decision to raise its key interest rate to an all-time high. The central bank's move was aimed at tackling persistent inflation, but it has raised concerns about the potential for higher borrowing costs to push the economy into a recession. Additionally, a substantial drop in new orders pointed to reduced demand within the largest eurozone economy. Consequently, construction firms reacted by scaling back procurement efforts and reducing their workforce, reflecting their growing concerns about future production. The combination of elevated interest rates, a sluggish economy, and ongoing high construction expenditures has left construction companies notably pessimistic about the upcoming months. However, in the final month of the quarter, the Fly Ash market stabilized in the region, primarily due to steady demand from the downstream construction sector. Furthermore, a consistent domestic supply of Fly Ash contributed to this market equilibrium. While challenges persist, this stability at the end of the quarter offers a glimmer of hope for the European Fly Ash market.
For the Quarter Ending June 2023
North America
The Fly Ash market in the United States experienced a decrease in prices during the second quarter of 2023. This decline was mainly attributed to reduced demand from downstream construction industries, which were wrestled with a shortage of labor and the US bank crises after the failure of Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB). It disrupted the availability of financing and lending options for construction projects. Construction companies often rely on banks and financial institutions to secure loans and credit lines to fund their projects. SVB's failure led to reduced available credit or tighter lending standards; the construction industry faced challenges in securing the necessary capital for their projects, potentially leading to delays or cancellations of the demand for construction products. The decrease in demand for construction products had a direct impact on Fly Ash prices. Finally, the latest settled prices of fly ash was stable in the USA at the quarter ending 2023 was USD 93/MT, primarily due to a balanced gap between demand and supply. However, in May and June, the value of Fly Ash experienced respective declines of approximately 2% and 1%. During the final two months of Q2 2023, the Bearish Market situation was primarily influenced by the smooth and cost-effective importation of Fly Ash from overseas. These imports further influenced the prevailing price trends.
APAC
In the second quarter of 2023, the Asian market experienced a mixed sentiment in the price of Fly Ash. In China, the price of Fly Ash also declined, with decreases of around 8% and 8.7% in May and June, respectively. These declines were influenced by an approximately 13% and 4% decrease in the price of feedstock Coal in the Chinese market. Furthermore, in April 2023, the price of Fly Ash increased by approximately 8.7% due to an improvement in demand from the construction sector and an increased price of coal, which rose by 1% during that month of the quarter. However, in the Indian market, the price of Fly Ash increased by around 6% and 2% in the initial two months of the second quarter. The demand from the domestic market improved during this period as the government focused on the construction and infrastructure sector, further leading to increased demand for construction goods. In the last month of this quarter, the product price did not change and was stable at USD 52.04/MT, primarily due to the narrow gap between demand and supply.
Europe
In the Q2 of 2023, the European Fly ash market experienced a bearish trend as the price of products declined during this quarter. In Germany, the Fly Ash prices decreased by around -3% in April, May, and June 2023, respectively. Low demand from the downstream construction industry was the prominent factor behind the pricing dynamics in the second quarter of 2023. Furthermore, macroeconomic factors such as high inflation have negatively affected consumer spending, further contributing to the bearish sentiment in the market. The buying momentum from derivative sectors, particularly constructions, and consumer goods, has significantly weakened as many buyers prioritize maintaining minimal inventories and acquiring materials only when necessary. The strike by dock workers at the Port of Hamburg, Germany, is the nation's busiest and the second busiest in Europe. This strike impacted the export of Fly Ash as Europe imports most of its Fly Ash to the USA and further helped to decline the product's price in the country.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the Fly Ash market in the United States witnessed a decrease in prices. This decline was mainly attributed to reduced demand from downstream industries, particularly the construction sector, which was grappling with a shortage of labor. The decrease in demand for construction products had a direct impact on Fly Ash prices. In February and March, the value of Fly Ash experienced respective declines of approximately 5% and 3%. The price decline during the final two months of the quarter was primarily influenced by the smooth and cost-effective importation of Fly Ash from Canada, Mexico, and China. These imports further influenced the prevailing price trends. However, in January 2023, the price of Fly Ash increased due to a rise in commodity prices in the global market, which affected the importation of the product into the country. As a result, by the end of the quarter, the price of Fly Ash in the US market stabilized at around USD 93 per metric ton.
APAC
During the first quarter of 2023, the Asian market experienced a decline in the price of Fly Ash. This drop was attributed to reduced demand for the product in the international market, despite a surplus in supply. In India, the price of Fly Ash decreased by approximately 2% and 3% in the first two months of the quarter, as global demand for the product declined and affected pricing dynamics. However, in March 2023, the price increased by around 2.7% due to a rise in demand from the construction industry. Similarly, in other Asian countries like China, the price of Fly Ash also declined, with decreases of around 8% and 4.5% in January and February, respectively. These declines were influenced by an approximately 8% and 4% decrease in the price of coal, which serves as a feedstock in the Chinese market. Furthermore, in March 2023, the price of Fly Ash increased by approximately 4.5% due to a surge in demand from the construction sector and an increased price of coal, which rose by 4.5% during that month of the quarter.
Europe
During Q1 of 2023, the construction sector in Europe witnessed a surge in demand for Fly Ash, despite the region maintaining a steady supply. This situation resulted in a price hike for Fly Ash in the European market throughout Q1. In Germany specifically, the price of Fly Ash experienced an increase of around 13%, with January and February of 2023 seeing a respective rise of 6%. This price escalation can be attributed to the growing demand for Fly Ash in the construction industry as construction activities gained momentum in Europe following the winter season. However, in March 2023, the price of Fly Ash stabilized as the demand and supply reached a balanced state.
