For the Quarter Ending June 2024
North America
In Q2 2024, the Fused Silica market in North America experienced a pronounced upward trend in pricing. The quarter was characterized by a consistent increase in prices, driven by multiple factors affecting the market dynamics. The most significant factor was the persistent surge in demand from downstream sectors, amid a broader economic acceleration. High interest rates, aimed at curbing inflation, curtailed spending on manufactured goods and capital projects, significantly reducing demand for Fused Silica.
Additionally, the rise in the cost of imported materials from the Asian market, coupled with insufficient regional supplies, contributed to the pricing downturn. Supply chain issues, such as the shutdown of Baltimore's inner harbor and potential strikes by freight rail carriers CN and CPKC, added to the market's sentiment, these disruptions impacted overall supply.
Focusing on the USA, the country saw the most significant price fluctuations, with an overall positive trend throughout the quarter. This can be attributed to strong demand from key industries and a growth in manufacturing activity.
APAC
Throughout Q2 2024, the Fused Silica market in the APAC region experienced a robust upward trajectory, marked by a confluence of demand-driven factors and supply-side constraints. The surge in Fused Silica prices was driven primarily by heightened demand from downstream sectors. These industries demonstrated a consistent uptick in activity, further amplified by seasonal construction booms and government-led infrastructure projects. Additionally, the resurgence of manufacturing units after disruptions, caused by natural calamities and heatwaves, played a pivotal role in stabilizing the supply, though not without creating temporary bottlenecks. Focusing exclusively on China, this quarter encapsulated significant price fluctuations, attributable to both internal and external market dynamics. The Chinese Fused Silica sector contended with a range of challenges, including increased freight rates and an unexpected dip in the property sector, which traditionally commands significant Fused Silica consumption. Despite these headwinds, the overall market sentiment remained bullish, fueled by a stable supply chain and strategic stockpiling by major industry players. Moreover, the price landscape remained overwhelmingly positive, culminating in a quarter-ending price of USD 623/MT FOB Shanghai for Fused Silica. This price point underscores an optimistic market environment, characterized by a resilient demand framework and adaptive supply strategies, ensuring sustained growth momentum for the foreseeable future.
Europe
In Q2 2024, Fused Silica prices in Europe experienced a significant upward trend, primarily driven by elevated import costs and logistical challenges. The main factors behind this increase were high freight rates in the Asian shipping industry and a series of General Rate Increases (GRIs) imposed by carriers, which led to substantial hikes in transportation expenses, directly affecting the cost of imported chemicals. Additionally, geopolitical uncertainties prompted U.S. importers to place orders earlier, increasing demand for shipping services and putting further pressure on freight rates. Robust demand from downstream industries also reinforced this upward trajectory. Despite fluctuations in construction output, the European market benefited from a resilient construction sector driven by improving economic activities. Seasonally, the summer months bolstered demand from the construction and automobile industries, sustaining high price levels. The correlation between increased freight costs and higher raw material prices, due to rising upstream crude oil prices, also played a crucial role. Notably, there were no disruptions from plant shutdowns, ensuring a stable supply environment.
