For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Silica pricing landscape in North America remained stable, with no significant changes in prices observed. This stability was influenced by various factors, including balanced supply and demand dynamics, consistent production levels, and steady construction activity supporting the stable demand for Silica.
The market maintained a positive outlook, driven by expected resilience in demand from the construction sector, particularly in non-residential projects. The USA experienced notable price changes during this period, with a recorded 1% increase from the previous quarter. Despite this fluctuation, the overall trend for Silica prices in the region remained steady.
Seasonal demand fluctuations and market resilience were key drivers of price stability, with minimal price variance between the first and second half of the quarter. The quarter concluded with Silica prices standing at USD 51/MT for Industrial Silica Sand Glass Grade FOB New York in the USA. No supply disruptions were reported for the product during this period, maintaining the overall stable pricing environment.
Asia
In Q3 2024, the APAC region witnessed stable prices for Silica, reflecting a balanced market environment. Several factors contributed to this stability, including consistent supply levels, steady demand from various industries like manufacturing and construction, and overall economic conditions. The market remained resilient despite global challenges, with no significant disruptions reported during the quarter. However, China stood out with notable price changes for Silica, experiencing slight declines amidst economic uncertainties and a sluggish real estate market. The country's construction sector faced challenges, leading to divergent price movements compared to the rest of the region. Despite these fluctuations, the overall trend for Silica pricing in APAC remained stable, showcasing a correlation in price changes and reflecting a cautious yet steady market sentiment. Comparing Q3 2024 to the same quarter last year, the prices remained consistent, indicating a stable pricing environment. Moreover, the quarter showed no significant price variance between the first and second half, further underscoring the stable pricing landscape. The quarter-ending price for Industrial Silica Sand Glass Grade CFR Qingdao in China stood at USD 57/MT, highlighting the prevailing stable pricing conditions in the region.
Europe
Throughout Q3 2024, the Silica market in Europe witnessed a consistent decline in prices, influenced by several key factors. The ongoing downturn in the eurozone construction sector, characterized by reduced activity and demand, played a significant role in shaping market prices. This decrease can be attributed to the prolonged weakness in the construction industry, particularly in major economies like Germany, France, and Italy, leading to subdued demand for Silica. The persistently low official economic indicators further highlighted the challenging environment for construction-related materials. Germany, experiencing the most significant price changes in the region, saw a notable -2.4% decrease from the previous quarter, reflecting the overall negative trend in Silica pricing. Seasonal fluctuations and supply chain disruptions also contributed to the downward pressure on prices. The comparison between the first and second half of the quarter revealed a continuous -2% decrease, emphasizing the sustained decline in Silica prices. The quarter-ending price of USD 55/MT for Industrial Silica Sand Glass Grade FOB Hamburg in Germany encapsulates the prevailing negative pricing sentiment in the market.
MEA
Throughout Q3 2024, Silica pricing in the MEA region remained stable, with Saudi Arabia experiencing the price rollover consistently for three months. The overall market stability was influenced by balanced demand and supply dynamics globally, with consistent pricing trends observed due to lacklustre demand in the construction sector. Seasonal factors continued to impact market conditions, while supply chain issues, particularly container shortages in Asia, led to elevated freight costs, affecting commodity prices. In Saudi Arabia, price fluctuations were notable, with a 2% increase recorded from the previous quarter. Despite this, the comparison between the first and second half of the quarter showed no price change, indicating relative stability. The quarter-ending price stood at USD 48/MT for Industrial Silica Sand Glass Grade FOB Jeddah. No plant shutdowns or major supply disruptions were reported during this period, contributing to the overall supply stability. The pricing environment in Q3 2024 for Silica in the MEA region can be characterized as stable, with fluctuations driven by global market conditions and supply chain challenges.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American silica market maintained a stable pricing environment, primarily due to a balanced demand-supply equation. Consistent industrial activities and sufficient mining outputs supported this stability. Minimal disruptions and no significant plant shutdowns further reinforced the market's steadiness. Seasonal factors, such as the onset of summer, led to a slight dip in construction activities, which marginally tempered demand but did not substantially impact the overall market dynamics. In the USA, the market experienced the most noticeable price fluctuations within North America.
The second quarter saw a 2% decrease in prices from the previous quarter, reflecting a slight downward trend due to moderated demand from both domestic construction and export markets. Economic indicators showed a mixed performance in the construction sector: residential investments remained stable, while the multifamily segment saw slight declines. Despite these sectoral variations, the overall trend remained stable, supported by ample product availability and effective inventory management.
A comparison between the first and second halves of the quarter revealed no significant price variations, underscoring the market's equilibrium. At the end of the quarter, the price of Industrial Silica Sand Glass Grade was USD 50/MT DEL New Jersey, reflecting a stable pricing sentiment. The quarter was characterized by stability, with neither significant positive nor negative extremes, ensuring a balanced outlook for the silica market.
Europe
In Q2 2024, the European Silica market experienced stable prices due to balanced supply and demand dynamics. The quarter was marked by steady production rates and moderate inventory levels, ensuring adequate availability of Silica across the region. Although global freight rates fluctuated and there were minor supply chain disruptions, such as the Red Sea conflict impacting shipping costs, the European market remained stable due to sufficient local supply and consistent furnace operations. In Germany, the market saw the most significant price fluctuations, driven by challenges in the construction sector. A persistent downturn in residential construction and underperforming public construction projects put downward pressure on Silica demand. However, commercial construction provided some relief, preventing a more pronounced decline. The overall demand for Silica remained subdued due to reduced construction activities, high-interest rates, and economic uncertainties. Despite these challenges, pricing in Germany remained stable throughout the quarter. The Silica market experienced a -3% change from the previous quarter, reflecting stable prices overall. There was no notable difference between the first and second halves of the quarter, resulting in a 0% price change. The quarter-ending price for Industrial Silica Sand Glass Grade FOB Hamburg was USD 57/MT, highlighting the stable market conditions. Overall, the quarter was characterized by a stable pricing environment, with the German market demonstrating resilience despite external pressures and internal economic challenges. This stability indicates a robust market structure capable of handling moderate fluctuations in demand and supply.
APAC
In Q2 2024, the Silica market in the APAC region experienced a notable uptrend in prices, driven primarily by robust demand and a balanced supply situation. Significant factors contributing to this price increase included heightened activity in the construction sector and the production of machinery and equipment, alongside government initiatives such as the Production Linked Incentive Scheme. This growth momentum was largely sustained by stable freight rates and an unexpectedly strong restocking cycle by European importers, which intensified shipment volumes from Asia to Europe. Despite supply chain disruptions and capacity constraints in the freight market, Silica prices remained buoyant. Focusing on China, which saw the maximum price fluctuations, the overall trend was bullish throughout the quarter. A confluence of factors, including a newly announced support package for the construction sector, aimed at reducing mortgage rates and converting unsold apartments into affordable housing, played a critical role in bolstering demand. This had a direct correlation with price increases in Silica, as the market responded to both domestic policy support and global demand dynamics. The price comparison between the first and second half of the quarter indicated a 2% increase, reflecting a consistent upward trajectory. The quarter ended on a strong note, with the price of Industrial Silica Sand Glass Grade CFR Qingdao reaching USD 58/MT. The pricing environment for Silica in Q2 2024 can be characterized as positive and optimistic, with no significant plant shutdowns or disruptions reported during this period. Despite the backdrop of potential challenges, the market conditions remained conducive to sustaining higher price levels, thus reinforcing the narrative of a bullish market sentiment.
MEA
In the second quarter of 2024, the MEA region experienced a largely stable pricing environment for Silica, with balanced market dynamics. The Industrial Silica Sand Glass Grade market maintained steady trends due to consistent supply levels and moderate demand from the downstream construction sectors. Key factors contributing to this stability included ample product availability, robust production levels, and a balanced demand-supply gap, which collectively prevented significant price fluctuations. The expansion of the non-oil economy and steady construction activity further supported stable Silica prices. In Saudi Arabia, the most notable price changes within the region occurred, but remained within a controlled range. The quarter showed a stable trend without significant seasonality impacting prices. The correlation between strong supply and steady demand was clear, as inventories remained ample and regulatory measures ensured market compliance. The quarter began with a 2% price decline from the previous quarter, reflecting subdued demand from the downstream cement sector. However, prices stabilized during the second half of the quarter, with no variation between the first and second halves, underscoring a theme of stability. The latest quarter-end price for Industrial Silica Sand Glass Grade FOB Jeddah was USD 48/MT. This consistent pricing suggests a neutral market sentiment, supported by sufficient supply and balanced demand. No significant plant shutdowns or disruptions were reported during this period, further contributing to the stable market conditions.
For the Quarter Ending March 2024
North America
The Silica market in North America experienced a relatively stable pricing environment during Q1 2024. Prices for Industrial Silica Sand Glass Grade remained unchanged in both Canada and the USA, despite some fluctuations in demand and supply. In Canada, prices for Silica remained stable throughout the quarter.
The market sentiment was balanced, with supply remaining mostly stable and regular buyers receiving their cargo on time. However, the construction sector continued to struggle, leading to low demand for the product. The peak winter season also contributed to the subdued demand. Despite these factors, prices remained unchanged, indicating a balanced demand-supply gap. In the USA, the pricing situation for Silica was also stable. Supply remained stable, with no significant disruptions reported. Demand, however, remained low as the construction sector faced challenges in gaining momentum. Winter weather conditions also impacted supply chain operations, leading to reduced purchasing activity from downstream industries. Nevertheless, prices remained unchanged, suggesting a harmonious balance between demand and supply.
Overall, the Silica pricing trend in North America during Q1 2024 was characterized by stability, with no significant price changes observed. The market was influenced by factors such as the winter season, construction sector performance, and supply chain disruptions. Looking ahead, the arrival of the summer season may support a price uptrend, and an improvement in demand is expected in the regional market. However, the market is likely to remain cautious due to the lingering effects of the bearish market situation in Europe and North America. The quarter-ending price for Industrial Silica Sand Glass Grade FD Vancouver in Canada was USD 67/MT.
APAC
Silica pricing in the APAC region for Q1 2024 has been relatively stable, with minimal changes observed in most countries. The overall market situation can be described as balanced, with supply and demand remaining stable. However, China has experienced the maximum price changes during this period. Various factors have influenced market prices for Silica. The low demand from the domestic construction sector has been a significant concern, leading to a lackluster demand for construction-related materials, including Silica. Additionally, the peak winter season has further dampened the demand for the product. In China, Silica prices remained unchanged during February 2024. The domestic construction sector continues to struggle, with low demand impacting prices. Looking at the overall trends, Silica prices have remained stable in the APAC region. The seasonal lull and subdued construction activities have contributed to the balanced demand-supply situation. In Q1 2024, the quarter-ending price for Silica in China was USD 57/MT of Industrial Silica Sand Glass Grade CFR Qingdao. This price remained unchanged throughout the quarter, highlighting the stability of the market. Overall, the pricing environment for Silica in the APAC region has been stable, with no significant fluctuations in the prices during this timeframe.
Europe
The Silica pricing in the Europe region for Q1 2024 saw a stable market environment with a slight decline in the prices. Overall, the demand for Silica remained low due to the struggling real estate and construction sectors in Europe. High inflation and interest rates also contributed to the downturn in the market. In terms of supply, there were no significant disruptions reported, and supplies remained stable throughout the quarter. However, some countries experienced supply chain disturbances due to winter weather conditions, leading to a moderate to low supply of Silica. Belgium, in particular, saw the maximum price changes during this period. Prices remained unchanged in January, but there was a decline in February by 1.6% for Industrial Silica Sand FOB Antwerp. However, prices rebounded in March and remained unchanged, indicating a balanced demand-supply situation in the country. The quarterly price comparison showed a decline in prices from the previous quarter in 2024, with a decrease of 1.6%. However, comparing the first and second halves of the quarter, no significant price difference was observed. In conclusion, the Silica pricing environment in the Europe region for Q1 2024 was stable overall, with some fluctuations in Belgium. The struggling construction sector and low demand influenced the market prices. The latest quarter-ending price for Industrial Silica Sand FOB Antwerp in Belgium was USD 61/MT.
MEA
Silica pricing in the MEA region for Q1 2024 experienced a relatively stable market environment. The prices of silica remained unchanged during that period, with no significant fluctuations observed. This stability could be attributed to a balanced demand-supply gap in the market. Despite the peak winter season, which typically hinders consumption growth, the demand for silica remained subdued worldwide. This lackluster demand kept prices stable throughout the quarter. In Saudi Arabia, the country that saw the maximum price changes, silica prices also remained unchanged during that period. The overall trend in the country mirrored the global market, with a balanced demand-supply situation and limited fluctuations in prices. The winter season did not have a significant impact on the demand for silica in Saudi Arabia, leading to stable prices. When comparing Q1 2024 to the same quarter last year, there was no percentage change mentioned in the provided data. Therefore, it was not possible to provide specific figures on these comparisons. The latest quarter-ending price for Industrial Silica Sand Glass Grade FOB Jeddah in Saudi Arabia was USD 48/MT.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, USA market for the Silica prices expresses an overall stable market during the period precisely stability in the demand and supply in downstream industries and the consumers, despite some minor fluctuations in the price on month-on-month basic.
According to data, market witness the moderate demand in the quarter regardless of some minor comedown in the downstream domestic construction sector primarily driven by the low water level in Mississippi river affected the domestic trade activities, weighing on the prices of several commodities including Silica in the US market prolonging high inflationary pressure and high fuel costs also played an important role in this price trend.
Prolonged drought condition in the Mississippi river in the October month of 2023 impacted on the logistics operation causing disruption in river traffic forced shipment companies to introduce mandatory reductions on loads and as they reduced total sizes by up to 20 percent impacting the export system Increased Commodity Prices. Low levels in the river are the cause of delays in major infrastructure projects such as the construction of wind turbines and this has also a knock-on effect in terms of higher electricity prices, higher food costs, and higher costs for building and construction materials.
ASIA
Silica price experienced a limited fluctuation in the fourth quarter of the year 2023 primarily due to the economy slowdown in China. As per the report of November 2023, China’s construction and other manufacturing activities has been low for the past few months, which has been a concern for convertors and the country’s government as well. However, Chinese government took several initiatives via policies to infuse liquidity in the market (specially in construction), which seems to be working for Silica market of the country. While demand for the product was improved amid the seasonal slowdown and at the same time, construction activities have slowed down due to the seasonal lull, which is expected to remain the same in the upcoming quarter. On the other hand, Indian market for the Silica reflected almost stable price trend for overall quarter period but in the mid of the duration showed a minor uprising in the regular price driven by the month of festivals in the country, which raised the demand from the domestic construction sector. Conclusively, the market experienced overall moderate demand and was able to fulfill the supply in the fourth quarter of year 2023.
EUROPE
The Silica price in the European market experienced the price upsurge in the middle of the quarter primarily driven by the bearish environment for the construction sector in Europe. According to the market, demand for the Silica did not improve throughout the quarter, while minor supply chain disturbance was observed due to train drivers’ union strike and port strike in Germany and Belgium respectively. It started when GDL (Gewerkschaft Deutscher Lokomotivführer) a union which represents the workers of train companies announced to strike against the demand of reduction in duty working week for shift workers on same wages. According to a German report, it is the longest transport strike ever in the history affecting the economy. A large portion of goods, about two-thirds, is transported via roads in Germany and in the neighboring countries just under one-fifth is transported by rail. Adding to the complexity, apart from the train other parts of logistics like ports are also affected by this strike and switching to road is not a realistic option due to the lack of enough trucks and as many to Hamburg as are necessary to move the number of containers which are usually transported by the train and port. However, these factors had a limited impact on the current Silica price trend. Additionally, as per the data released by Eurostat, regional inflation declined by 0.5% during November 2023, while industrial production remained low as expected, supporting an overall demand dullness.
MEA
The fourth quarter of 2023 in the MEA region saw significant developments in the Silica market, with several key factors influencing prices. Firstly, the construction sector continued to drive demand for Silica, particularly in Saudi Arabia, where the industry remained resilient despite challenges in other countries. Additionally, the global market saw an increase in Silica prices, leading Saudi Arabian traders to revise their offers for the international market. Hence, the overall industrial output in Saudi Arabia declined in October, the potential in demand of Silica declined too. The country experienced a balanced supply and demand situation, with ample product availability and moderate demand from the construction sector. Despite the stable prices, input costs continued to rise due to increasing raw material prices and wages, posing challenges for businesses. Comparatively, there was a slight decrease of 2% in prices from the previous quarter, marking a slight downward trend. Additionally, there was a 2% decrease in prices between the first and second half of the quarter in Saudi Arabia. Conclusively, as of the end of the quarter, the price of Industrial Silica Sand Glass Grade in Saudi Arabia was FOB Jeddah USD 49/MT.
For the Quarter Ending September 2023
North America
The assessment of the US Silica market reveals stability in prices during Q3 2023, primarily due to an impeccable balance in demand and supply from the domestic construction sector and traders. Data indicates that demand fundamentals for this product remained lackluster during this period. While there was a marginal improvement in the downstream construction sector, a prolonged labor shortage in the country hindered the industry's full recovery. Interestingly, amid the backdrop of steadily rising prices for most construction-related raw materials, Silica emerged as an exception to this trend. However, it's worth noting that the Producer Price Index (PPI) for Cement and Concrete Product Manufacturing rose from 235.094 in July to 235.795 in August, as reported by FRED, contributing to the overall market recovery. The unchanging price trends on the global stage influenced the cost of the product within the domestic market, maintaining a sense of equilibrium. One notable factor contributing to the overall stability in the US Silica market was the smooth and cost-effective import of the product. This streamlined import process not only ensured a steady supply but also contributed to price stability, further benefiting the market's participants.
Asia
Silica Prices in Asia fluctuated throughout the quarter on the back of changing demand-supply scenarios and the uncertain market outlook of major Asian economies like China. As per the analysis, Silica prices in China experienced a decline during July due to prolonged dullness in demand from the construction sector amidst a subdued demand outlook for construction materials. Surveys by some private News agencies in China revealed that the economic activities of the country have declined for 4th month straight in July 2023, posing another threat to recovery. The global market has seen an insignificant rebound in the economic momentum of China, which has also affected the global market sentiments. After witnessing a significant fall during July, Silica prices in China witnessed a steep rebound during August 2023. As per the market sources, the global Silica market has shown a significant rebound, as it has been falling for a long time globally. Further, this hike also occurred to improve margins amidst high inflationary pressure. Global crude oil values had also been rising parallelly, raising a threat of further increment in inflation in the global market. Additionally, the monsoon season in the country and the flood situation in several parts of China have also induced supply disturbances and supported this steep rise in prices. Additionally, according to the data released by NBS China, PMI improved from 49.3 (July) to 49.7 (August), supporting the price uptrend.
Europe
Silica prices in the European market experienced a decline during the first half of the quarter on the back of a dull economic outlook amidst low demand in the market. As per the major cement manufacturer of Europe, "Buzzi SpA," the company has experienced a decline in demand during the first half of the year 2023. Further, the company anticipated dullness in the second half of the year, too, which subdued the market sentiments for construction-related raw materials in Europe. Further, inflationary pressure also eased in the German market during July 2023. Following this decline, Silica prices in the global market, including Europe, rose during this month owing to insufficient supplies amidst marginal increment in demand in some countries. As per the market sources, demand for the product within the country remained moderate to low during this period, while overseas queries rose marginally due to the low availability of the material in the regional market. On the other hand, regional economic activities remained stable to dull throughout this timeframe, especially for Germany, as the data released by Deutsche Bundesbank Eurosystem shows that producers prices of Industrial Products sold on the domestic market remained at 147.1 (September) after revising from 147 (July).
For the Quarter Ending June 2023
North America
North American Silica prices fluctuated during the second quarter of 2023 on the back of uncertain demand scenarios amidst the weakening economic momentum of the country. As per the data, Silica prices in North America declined during the month of May while maintaining stability for the month of April and June 2023. The price fall was driven by a dull demand outlook for the product, which affected the price trend of several commodities in the global market, including Silica Sand. However, different countries experienced different market fluctuations, though the trend for Silica Sand remained the same globally. Supplies remained stable in the global market, while international trade activities have not shown any sign of disturbance. On the other side, Freight charges on several trade routes were falling during May 2023, supporting this downward trend. However, the report released by Fred stated that the construction sector showcased a surprising rebound during May, but the actual driver for that growth didn’t show any effect on the prices of construction-related raw materials, including Silica Sand.
Asia
Silica prices in Asia also showcased a similar pricing trend during Q2 2023. Silica prices declined in the Asian market during the mid of the quarter owing to falling optimism related to the construction industry amidst ample availability of the product. As per the data, the demand outlook remained low for the product, which has affected the price trend of several commodities in the global market, including Silica Sand. As per the data released by NBS (National Bureau of Statistics, China), CPI remained under control during May 2023 while hovering around 100.1, and this market fundamentals sustained during June 2023 too. The construction sector has remained low globally after witnessing a marginal improvement during the early summer season. Furthermore, the demand outlook has also been low, which has supported this price trend. Silica prices have also shown similar price momentum in the Indian market owing to ample product availability in the country and no external disturbances related to supplies etc. Further, the construction sector of India rose initially during the arrival of the summer season. Since then, construction activities have been unchanged.
Europe
European Silica market also remained the same as other global economies. As per the data, Silica prices fell during the month of May, while maintained stability for the rest of the quarter. Furthermore, demand for the product remained low in the European market due to consistently low economic activities exacerbated by violence erupted in France and ripple effect of the US economic slowdown. Thus, all these factors not only affected the price trend construction related raw material like Silica, but other commodities too. However, Regional freight charges remained high during this quarter too, affecting prices of several commodities including construction raw material but not Silica. However, supplies remained ample, and inflation was major driving factor for this price trend. During May 2023, Germany seemed to be falling into recession due to prolonged inflationary pressure on consumers, as consumers were not ready to invest into unnecessary things like luxury. Further, it was observed that Producer Price Index (PPI) fell from 138.3 to 136.3 during April-May timeframe, indicated an overall market dullness.
For the Quarter Ending March 2023
North America
The price of Silica (Glass Grade) FOB in New York, USA, increased by 2% in January 2023 due to inflationary pressure. However, the market situation remained stable, and supplies and demand were moderate. In February and March, prices remained unchanged as traders stopped raising their offers due to the already high input cost and inflationary pressure in the country. Despite marginal improvements in demand from downstream buyers, the pace of economic recovery has been slowed by high inflation. Overall, the market remained stable with moderate supply and demand.
Asia
The Silica prices remained stable in March 2023 in China and India due to stable supply and demand. In January, there was a marginal price increase in China and a significant increase in India. In China and India, the price increase was due to the traders raising their offers due to moderate improvement in demand from the downstream market. The market situation was stable in China and bullish in India. The supplies remained moderate to stable, while demand was low in China and moderate in India. The domestic construction sector in India showed a marginal improvement in demand due to seasonal phenomena.
Europe
Silica sand prices remained stable at USD 61/MT FOB Hamburg, Germany, for March and February 2023 due to low demand from the domestic market despite ample supply. Regional freight charges remained high, and inflation was a driving factor for this price trend. In January 2023, prices increased by 1.7% due to partial improvement in demand amidst depleted inventories caused by the winter season. However, demand remained low due to the economic slowdown despite the threat of recession falling. The market situation was bullish, and supply remained stable throughout.
For the Quarter Ending December 2022
North America
Slowed demand amidst ample product availability fluctuated the price of Silica in the US market during October. However, inflation remained a matter of concern. Product availability remained ample enough to satisfy the overall need of the country as well as the regional market. A smooth flow of cargo was observed with no sign of disturbances. A marginal fall in demand from the silicate manufacturers has been observed while regular buyers kept on purchasing cargo. Furthermore, for the rest of the month of Q4 2022, prices remained unchanged at USD 52/MT.
Asia
Marginal price improvement was observed for Silica in the China market during November 2022, owing to disturbances in domestic trade activities, due to rising pandemic-related uncertainties, which later remained unchanged at USD 55/MT for the rest of the quarter. Supplies remained a major factor behind this price movement in the Chinese market during this quarter, while imports were getting cheaper month over month. Slowed demand from the domestic construction sector was driving the price trend previously, while traders were resisting any negative price revision. Rising pandemic cases in the country injected pessimism among domestic traders.
Europe
Slowed economic activities and wavering offtakes have been a major concern for the European market, while eased energy prices supported the price downtrend during November 2022, which later remained unchanged for the rest of the quarter. A smooth flow of cargo was observed throughout the European market during the month of October 2022. Demand remained rangebound while slowed construction sector affected the demand dynamics for the product. Furthermore, the silicate market also remained dull, supporting this pricing dynamics. The price of Silica was assessed at USD 60/MT during November after falling by around 1.6%.
For the Quarter Ending September 2022
North America
Silica Price showcased mixed market sentiments in North America during Q3 2022. As per the data, the price of Silica Sand remained unchanged throughout the quarter across the Canadian market. On the other side, a marginal rise in price trend was observed for the USA during the final month of the quarter. This price increment was primarily driven by rising domestic freight charges and consistently firm inflationary pressure all across the regional market. High gasoline prices also influenced domestic transportation expenses, which were exacerbated by a steep rise in energy values. Silica Sand prices were assessed at around USD 53/MT during September 2022.
Asia
Major Asian markets showcased a similar sentiment during this quarter, owing to parallel and in-line demand from the regional niche buyers. As per the insights, demand for the product remained firm in the Indian market throughout the quarter, which eventually led to a rise in its price by the end of the quarter. On the other side, Chinese players heard battling restricted economic activities due to pandemic-related uncertainties amidst slowed demand from domestic buyers. However, demand rose eventually in the Chinese market, too, due to a hike in demand from the silicate manufacturers, where the price was assessed around USD 55/MT during the final month of the quarter.
Europe
The rising cost of energy, under the expectation of high demand from the domestic market amidst halted supplies from Russia, are the factors that affected the European market during this quarter. Slowed economic growth and a steep fall in consumption eventually pushed the European market toward a recession. Silica Sand price heard declined in the Belgian market during the final month of the quarter. On the other side, prices remained unchanged throughout the quarter in the German market during a similar timeframe and hovered around USD 61/MT. Additionally, the country’s slow demand from the construction sector also contributed to this price change.
For the Quarter Ending June 2022
North America
Domestic transportation costs have increased in the US market due to rising gas prices, generating concerns about inflation and putting pressure on trader margins. However, a sharp increase in the cost of construction materials has discouraged builders from acquiring further cargoes in the US construction sector. Despite these obstacles, silica price has stayed consistent and unchanged throughout the second quarter of 2022 after seeing a slight increase in April as a result of oversupply of the commodity on the domestic market. The stagflation situation and the slowdown in economic activity also threatened traders, who were advised to maintain steady pricing to maintain offtakes.
Asia
The data shows the price remained unchanged during the first two months on the back of ample availability for the product amid stable demand from the domestic market, and a small price variation was seen in India during June 2022, demonstrating the Asian market's overall stability in supply dynamics during this quarter. Although the product's core demand factors have improved from the previous quarter, prices remained stable throughout this time. But procurers have also felt the effects of inflation, as they have had to deal with increased fuel prices that have strained their finances. Pandemic in China also slowed down the constriction activities in the country, which eventually reduced the offtake for several products, including silica in the domestic market.
Europe
Due to steady domestic market demand and a surplus of stock, the price of silica in Germany remained consistent throughout the first few months. According to market sources, even though the ongoing Russia-Ukraine conflict has caused the prices of several commodities to rise, Silica prices have remained consistent due to the plenty of the product's stock in the local market. According to market sources consulted by ChemAnalyst, certain European players have been forced to boost their product prices due to growing domestic freight costs. Operators of forges continued to be concerned about the rising cost of natural gas due to the war between Russia and Ukraine.
For the Quarter Ending March 2022
North America
Owing to stable demand from the local market, the North American Silicate market witnessed frequent ups and downs. As global economic activities regained from the pandemic's critical phase, demand for the commodity held steady in the downstream paper and construction sectors. However, the rapid escalation of the Russia-Ukraine dispute hampered overall flow and brought uncertainty into the global market. Manufacturers were pushed to increase their product prices to maintain margins due to trade disruptions and growing wage inflation on consumers thanks to increasing crude oil costs. As per the ChemAnalyst assessment, Silica prices were assessed around USD 64.3/MT during February in the USA.
Asia Pacific
Silica prices have been rising in the Asian market for some time, owing to strong offtakes and insufficient supplies from regional market. Exporting countries such as China, on the other hand, experienced disruption in Q4 2021 as a result of a dual energy policy issue, which coincided with the rising threat of the Omicron version. However, the threat of Omicron turned out to be less severe than expected, therefore no such extreme effects were noticed. Furthermore, demand fundamentals for the commodity from the domestic construction sector have been rising due to seasonal offtakes, while the global market's overall pricing dynamics have been escalating due to the Russia-Ukraine conflict. Furthermore, the ongoing confrontation between Russia and Ukraine has pushed up the price of crude oil, putting inflationary pressure on global procurers. Silica price was assessed around USD 54.3/MT during February.
Europe
During the months of January and February, the price of Silica increased by almost 2-3%. The conflict between Russia and Ukraine was the prime factor of the problem. Germany's reliance on Russia for petroleum and other energy sources resulted in a negative economic curve. Following the escalation of the conflict between the two countries, natural gas costs skyrocketed, explaining the spike in Silica prices. Furthermore, the resurgence of the omicron virus in Germany resulted in the enforcement of a lockdown, which had an impact on the trade sector. The battle has also pushed up the price of crude oil, which has had an impact on the worldwide market. Silica price was hovering around USD 60.2/MT during February 2022.
