For the Quarter Ending March 2024
North America
In North America, during the first quarter of 2024, the market for Silicon Tetrachloride witnessed notable fluctuations largely due to supply chain disruptions and increased demand dynamics. The collapse of the Francis Scott Key Bridge in Baltimore emerged as a significant disruptor, severely impacting logistics and distribution networks essential for the movement of Silicon Tetrachloride.
This event led to a notable scarcity of the product across the region, placing upward pressure on prices. Concurrently, demand for Silicon Tetrachloride saw a sharp rise, driven primarily by the optic fiber industry, which required increased quantities of the chemical to meet the expanding business activities across various sectors in the United States. The surge in demand against a backdrop of constrained supplies contributed to the escalating prices.
Furthermore, the trading conditions were favorably influenced by a significant reduction in freight rates, which declined by approximately 23% between the USA and Asia. This reduction in freight costs somewhat mitigated the logistical challenges posed by the bridge collapse, although the overall effect on supply chains remained substantial. The combined effect of these factors led to a bullish market situation where the demand consistently outpaced the available supply, driving prices upward throughout the quarter. Thus, the quarter-ending price in the USA for Silicon Tetrachloride CFR Texas was USD 2078/MT.
APAC
In the APAC region during the first quarter of 2024, the Silicon Tetrachloride market experienced significant fluctuations primarily attributed to disruptions in the supply chain and heightened demand dynamics. The disruptions in the Red Sea emerged as a major disruptor, severely affecting logistics and distribution networks critical for the transportation of Silicon Tetrachloride. This event resulted in a noticeable shortage of the product across the region, leading to upward pressure on prices. Simultaneously, there was a sharp increase in demand for Silicon Tetrachloride, primarily propelled by the optic fiber industry. The industry required larger quantities of the chemical to meet the expanding business activities across various sectors in the Asian market. This surge in demand, coupled with constrained supplies, contributed to the escalating prices. Additionally, trading conditions were positively influenced by a significant reduction in freight rates, which decreased between the USA and Asia. This decrease in freight costs helped alleviate some of the logistical challenges posed by the supply disruptions, although the overall impact on supply chains remained substantial. The combined effect of these factors created a bullish market situation where demand consistently exceeded available supply, driving prices upward throughout the quarter.
Europe
In Europe, particularly in Germany, the Silicon Tetrachloride market during the same period was characterized by a complex interplay of reduced production capacities and moderate demand. The primary challenge stemmed from logistical disruptions due to a series of strikes by the GDL union, which significantly affected the country's train services, crucial for the distribution of industrial chemicals like Silicon Tetrachloride. Additionally, geopolitical tensions in the Red Sea region led to further complications in shipping routes, causing delays and rerouting of shipments, which tightened supplies in the European market. Despite these supply-side constraints, demand remained only moderately high, influenced by a cautious economic environment where inflation rates were decreasing, leading to restrained consumer spending and investment in the chemical sector. The resultant supply-demand imbalance periodically pushed prices upward, though the overall demand did not surge significantly. These market conditions highlighted the sensitivity of Silicon Tetrachloride prices to disruptions in production and logistics, maintaining a somewhat volatile pricing environment throughout the first quarter of 2024. Thus, the quarter-ending price in Germany for Silicon Tetrachloride FOB Hamburg was USD 2000/MT.
