For the Quarter Ending December 2024
North America
The North American Fumed Silica market declined in December followed by an uptrend during the fourth quarter of 2024. Due to the rebound in the downstream construction sector, the sales volume of Fumed Silica has surged simultaneously during October 2024. The Election uncertainty has increased consumer sentiments which created an upward pressure on the overall market.
During November 2024, the supply chain activity registered disruption which led to higher freight charges due to the labor strike. Additionally, the Thanksgiving holiday following the victory of Trump increased consumer confidence which led Fumed Silica manufacturers to increase their offered quotations to align with the market trend during this timeframe.
However, the Fumed Silica market witnessed a price decline in December 2024. This downturn was attributed to several factors, including a surge in destocking activities across the industry, weakening demand from key construction sectors, and aggressive discounting by major manufacturers which have eroded market confidence and exerted significant downward pressure on Fumed Silica prices.
APAC
Fumed Silica pricing in the APAC region for Q4 2024 has experienced a significant decrease, followed by an uptrend. In October 2024, the rebound in the downstream construction sector led to a significant increase in Fumed Silica sales. Additionally, the post-National Day holiday period in China and Taiwan boosted consumer confidence, exerting upward pressure on the market. However, after witnessing the hike, the Fumed Silica prices in Japan marginally declined during November 2024 amid sufficient inventory backups. Storms in Japan significantly disrupted logistics for Fumed Silica exporters, resulting in longer delivery times and increased freight charges. Despite these challenges, Fumed Silica prices in Japan declined during November. This downturn was primarily driven by weak demand from the downstream construction and coating sectors. New orders decreased domestically, while international demand stagnated. Furthermore, early destocking activities by manufacturers led to increased discounting, offsetting the impact of higher logistical costs and ultimately forcing suppliers to lower their quotations. Moreover, in December, the downstream construction market experienced a seasonal slowdown, leading to a bearish market sentiment.
Europe
In Q4 2024, the Fumed Silica market in Europe experienced a period of mixed trend. During October 2024, the price drop was attributed to a decline in new orders stemming from a weak performance in the downstream construction sector. Consumer sentiment remained subdued amidst a surge in the inflation rate. The post-peak shipping season witnessed a decline in demand for shipping containers, leading to lower freight charges and shorter delivery times. However, as November proceeded, the Fumed Silica prices rebounded, despite a decline in the downstream construction sector. Moreover, several domestic producers considered price increases to remain competitive with the market dynamics during this timeframe. Expectedly, the Fumed Silica prices in Germany again declined by 2% during December 2024 to settle at USD 4920/ MT Fumed Silica FOB Hamburg as several manufacturers have provided heavy discounts due to a surge in destocking activities across the industry. Major Fumed Silica manufacturers including Evonik have announced large discounts during December which exerted significant downward pressure on Fumed Silica prices.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American Fumed Silica market maintained a mixed price trend. Despite the demand for Fumed Silica in the USA showcased minor improvement, the price trend for Fumed Silica witnessed a significant surge during July 2024 on the back of supply disruptions and the looming threat of hurricanes, which curtailed the output.
However, the Fumed Silica market experienced a downward price trend in August 2024, following an earlier uptrend driven by hurricane-related disruptions. Low demand from the downstream construction industry, particularly in the US, coupled with easing freight rates, contributed to the price decline. The low demand from the downstream construction industry has declined the orders for Fumed Silica as the Construction spending in the United States fell by 0.1% month-over-month to August 2024.
While, in September 2024, the prices rebounded back due to high demand from the downstream construction industry and tightened supply disrupted by the hurricane. The quarter ended with Fumed Silica priced at USD 5926/MT DEL Houston in the USA, signaling a consistent and stable pricing environment for the industry.
APAC
Fumed Silica pricing in the APAC region for Q3 2024 has experienced a significant decrease, primarily influenced by a decreased demand in the downstream construction sector. The quarter saw a challenging market environment marked by a decline in market prices due to various factors such as heavy rainfall which dampened the market enthusiasm during July 2024. Moreover, due to ease in supply pressure, producers were wrapping up sales for July and starting August cargo negotiations. Despite the disruptions caused by a tropical storm in Japan in September 2024, the prices of Fumed Silica experienced a downward trend due to intense market competition. Despite the ease in the inflationary pressure, the demand for Fumed Silica has continued to showcase a downtrend due to a decline in the downstream construction sector. Japan, in particular, witnessed the most significant price changes, with fluctuations reflecting the broader trends in the region. The quarter recorded a -2% change from the previous quarter. The latest quarter-ending price for Fumed Silica FOB Tokyo in Japan stood at USD 5416/MT, reflecting the prevailing negative pricing sentiment.
Europe
In Q3 2024, the Fumed Silica market in Europe experienced a period of increasing prices, driven by various factors. Supply disruptions in key regions, such as the ongoing conflicts in the Red Sea and significant congestion at important ports, led to inefficiencies and operational challenges, impacting supply chains and contributing to price hikes. Additionally, rising global shipping costs and expensive logistics due to various disruptions further pushed prices upwards. The construction sector, a major consumer of Fumed Silica, remained sluggish, but suppliers raised prices to maintain competitiveness amid squeezed profits. However, low demand from the downstream construction industry, particularly in Europe, coupled with easing freight rates, contributed to the price decline during August 2024, yet not sufficient to offset the uptrend during the third quarter. The Netherlands, in particular, witnessed the maximum price changes in the region. The overall trend in pricing showed a consistent increase, with a recorded 2% rise from the previous quarter in 2024. The price comparison between the first and second half of the quarter revealed a 3% increase as the quarter progressed.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been marked by a mixed market sentiment for Fumed Silica within the North American region. During April 2024, several home builders experienced ongoing pressure. Even while the activity was somewhat expanding, the National Association of Home Builders attitude index remained flat, indicating a lack of confidence in sales which in turn lowered the market sentiments for Fumed Silica.
Moreover, rising rates of inflation throughout the US economy had a knock-on effect that affected consumer purchasing power and general market optimism. Fumed silica, a crucial building ingredient, saw a sharp decline in demand amidst decreased demand brought on by rising interest rates and cautious consumer spending driven by inflation which concluded the Fumed Silica market as bearish during May 2024.
However, the quarter-on-quarter comparison reveals a steady increase of 1% in prices, reflecting a positive momentum. Despite the low demand from the downstream construction industry, the market dynamics for Fumed Silica remained on the higher end due to supply chain issues. Disruptions and logistical hurdles further compounded the supply scenario, pushing prices upwards during June 2024. Conclusively, the quarter-ending price of USD 5855/MT for Fumed Silica DEL Houston encapsulates the robust and positive pricing environment observed throughout Q2 2024, underscoring a period of significant growth and market dynamism.
APAC
The second quarter of 2024 has been a pivotal period for Fumed Silica pricing in the APAC region, characterized by bullishness followed by a notable downtrend. Previously, the downstream construction sector in Japan grappled with several challenges, including a chronic labor shortage, rising material costs, and a heavy reliance on excessive overtime work. These factors not only hampered efficiency but also contributed to worker burnout. Henceforth, the demand for Fumed Silica remained subdued from the downstream construction industry and resulted in a declining price trend during April 2024. However, the government has implemented new policies to address these issues. The market experienced a resurgence primarily driven by a rebound in downstream construction demand and favorable weather conditions during June 2024. New government policies and economic stimulus measures aimed at boosting infrastructure investment significantly contributed to the bullish market sentiment for Fumed Silica. Additionally, supply chain disruptions, including increased freight charges and port congestion, also played a critical role in elevating prices for Fumed Silica in Japan.
Europe
In Q2 2024, the European Fumed Silica market experienced an upward pricing trend despite the low demand from the downstream construction sector, driven by several significant factors. Market competition and price stabilization efforts were key reasons behind this increase. Prolonged declines in prices had pressured profitability margins, prompting suppliers to revise their quotations upwards to ensure market equilibrium during May 2024. Additionally, global freight charges saw a substantial rise, influencing European producers to adjust their pricing strategies accordingly. Despite subdued demand in the downstream construction industry due to persistently high inflation rates and economic uncertainties, the market admitted a bullish trend during June 2024. The European Central Bank's measures to curb inflation by raising interest rates further impacted construction activity, particularly within the housing sector. Focusing on Germany, which witnessed the most notable price changes, the overall trend in Fumed Silica pricing reflected a positive sentiment. Seasonality played a role, with the summer driving season offering some relief and improved demand prospects. The correlation between these trends and the price hikes was evident, with a pronounced increase from the previous quarter recorded at 4%.
For the Quarter Ending March 2024
North America
During Q1 2024, the pricing dynamics of Fumed Silica in the North American region, particularly in the USA, displayed a nuanced pattern influenced by multiple factors. The overall trend for the quarter was mixed with some supply disruption and fluctuating demand from the downstream construction industry.
The disruption in the weather conditions and the shipping issues created a disturbance in the transaction of commodities including Fumed Silica in the international market. The Arctic Blast that hit the US in January disrupted several businesses and delivered bitterly cold temperatures, which added to the problems with the orders.
During February 2024, the market situation in the USA played a significant role, with low demand from the downstream construction sector during the winter and holiday seasons. This resulted in a lack of buying activity and contributed to the overall bearish sentiment.
However, the demand for Fumed Silica in the USA rebounded during March due to the spring driving season. The National Association of Home Builders reported that its monthly confidence index increased three points to 51 in March, the highest level since July 2023 and the fourth gain in a row.
APAC
In Q1 2024, the pricing dynamics of Fumed Silica in the APAC region were influenced by various factors. The overall trend in Japan, where price fluctuations were most pronounced, was characterized by a moderate level of supply and low to moderate demand. The market situation was balanced during January 2024, with a cautious wait-and-see approach adopted by market players. The weak downstream demand from the construction sector, a major user of Fumed Silica, remained sluggish throughout the quarter. This subdued activity led to price stagnation and a lack of purchasing enthusiasm. Additionally, the market was impacted by factors such as low overseas demand, reduced profit margins for local businesses, and an increase in input costs during February 2024. The influx of inexpensive production costs in the region further affected prices. However, during March 2024, the demand for Fumed Silica in Japan remained high due to a rebound in the downstream construction industry. Japan's service economy expanded rapidly in March. Gains in total activity and new business were the greatest since August, driven by increased consumer numbers and confidence.
Europe
In Q1 2024, the Fumed Silica market in Europe, particularly in Belgium, experienced a persistent slump in prices due to subdued demand from downstream industries like sealants, coatings, and adhesives during January and February 2024. This was a direct consequence of the struggling European construction sector, which showed no signs of immediate recovery. The weakness in construction had a cascading effect throughout the supply chain, impacting industries heavily reliant on Fumed Silica. Additionally, the lack of signs of revival in the downstream construction industry in Europe further contributed to the poor performance of Fumed Silica in the market. The European construction industry slightly adjusted upward, but the industry still faced headwinds from the destocking season, where companies reduced their inventory levels, further dampening demand. However, the prolonged price decline had put pressure on profitability, prompting suppliers to adjust prices to achieve some level of stabilization during March 2024. While the overall Fumed Silica market saw a price correction, the situation within the downstream construction industry remained subdued as the sentiment aligned with the previous months.
