For the Quarter Ending September 2024
North America
In Q3 2024, Silicon Tetrachloride experienced a notable decline in prices across North America, reflecting a challenging market environment. Several factors contributed to this downward trend.
Firstly, oversupply in the global market exerted pressure on prices, leading to reduced demand and softer pricing dynamics. The weakened industrial activities, particularly in key sectors like automotive and construction, further dampened the market sentiment. Additionally, supply chain disruptions and fluctuating raw material costs added to the pricing challenges faced by Silicon Tetrachloride. In the USA, the impact of these factors was most pronounced, with significant price changes observed.
The quarter recorded a substantial -11% decrease from the previous quarter, highlighting the persistent downward trend. Moreover, a notable -18% price difference was noted between the first and second half of the quarter, indicating a steep decline in pricing during the period. The quarter-ending price of USD 2100/MT for Silicon Tetrachloride CFR Texas in the USA underscored the negative pricing environment that prevailed throughout Q3 2024. The market exhibited a clear downward trajectory, with challenges in demand, oversupply, and supply chain disruptions influencing pricing dynamics.
Asia
In the APAC region during Q3 2024, the Silicon Tetrachloride market experienced an overall mixed trend in prices. These fluctuations was primarily influenced by a combination of factors such as varying industrial activity, rising demand from key sectors, and supply chain challenges. The market saw stable supply conditions, with demand outpacing availability, leading to price hikes. These dynamics were particularly pronounced in China, where the market faced disruptions in trade routes and increased shipping costs, further impacting prices. The quarter showed a consistent positive sentiment in pricing, with a minor increase from the previous quarter. The price change from the same quarter last year was notable, reflecting the volatile nature of the market. Semiconductor market situation in the region remain under scarcity throughout this timeframe, while demand dynamics varied country over country. The downstream consumer industries i.e., electronics and automotives were struggling during Q3 2024 due to seasonal variations.
Europe
Silicon Tetrachloride prices in the European region witnessed a significant decline in Q3 2024, with Germany experiencing the most pronounced changes. The overall market sentiment was bearish, driven by falling regional demand and rising inventory levels. Decreased sales of automobiles, particularly in the EV and hybrid vehicles segment, contributed to the downward price trend. Intensified competition from Chinese automakers further dampened domestic consumption of semiconductor products, leading to ample stock availability of Silicon Tetrachloride in the market. Supply remained moderate, with improved delivery times but varying input prices across different countries. Demand stayed moderate, with stable buying patterns observed. Plant shutdowns were not reported during the quarter. Germany saw a notable price decrease of 12% from the previous quarter, with a 20% decline between the first and second half of Q3. This downward trend culminated in a quarter-ending price of USD 2000/MT of Silicon Tetrachloride FOB Hamburg, reflecting the prevailing negative pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the Silicon Tetrachloride market in North America saw a substantial increase in prices, driven mainly by rising production costs and supply constraints. The market was pressured by higher freight expenses and increased raw material costs, particularly for silicon and chlorine. Geopolitical tensions also contributed to elevated global shipping costs, further straining supply chains.
The US market, in particular, experienced significant price volatility. Overall, the trend was notably bullish, with prices steadily rising throughout the quarter. Seasonal demand from the downstream construction and automotive sectors intensified supply tightness. Disruptions such as the collapse of the Francis Scott Key Bridge severely affected logistics, and reduced production rates in major exporting regions worsened the supply issues.
Compared to the previous quarter, prices surged by 28%, highlighting ongoing scarcity and increased demand. Within the quarter, prices rose by 6% between the first and second halves, reflecting continuous upward momentum. The quarter concluded with prices reaching USD 2,618/MT CFR Texas, indicating a predominantly positive pricing environment supported by sustained demand and limited supply, with no major plant shutdowns reported.
Europe
In Q2 2024, the European market for Silicon Tetrachloride saw a steady increase in prices, driven by several key factors. Elevated production costs, rising freight expenses, and supply chain disruptions played major roles in this trend. Freight congestion and the ongoing Red Sea conflict exacerbated shipping delays, contributing to higher transportation costs. Additionally, inflationary pressures in European economies forced manufacturers and traders to raise prices to protect their margins. Germany experienced the most significant price changes due to these dynamics. The country faced supply constraints caused by reduced production rates and logistical disruptions, such as strikes and port closures. Persistent high inflation further intensified the upward price trend. Consequently, Q2 2024 exhibited a strong bullish sentiment, with prices rising markedly compared to the previous quarter and showing a substantial increase from the same quarter last year. Seasonality had minimal impact, with prices increasing steadily by 6% from the beginning to the end of the quarter. This trend highlighted consistent demand amid limited supply. By the end of the quarter, the price of Silicon Tetrachloride in Germany had reached USD 2540/MT FOB Hamburg, reflecting a favorable pricing environment influenced by ongoing supply disruptions and elevated production costs.
APAC
In Q2 2024, the Asian market for Silicon Tetrachloride experienced a consistent price increase, driven by several factors. Rising freight rates and higher raw material costs, particularly for feedstock silicon, contributed significantly to the price uptick. In May, the global freight industry saw a sharp increase, with the global container freight index rising by over 30%. Rates from Asia to international destinations, such as East Asia to North Europe and the North American West Coast, surged by more than 40%. This spike was due to General Rate Increases (GRIs) and heightened demand as U.S. importers advanced orders amid geopolitical uncertainties. The Maritime and Port Authority of Singapore (MPA) confirmed a significant increase in vessel arrivals since the beginning of 2024. In the first four months of 2024, the monthly average tonnage of container vessel arrivals reached 72.4 million gross tonnages (GT), over 1 million GT more per month compared to the same period last year. In Singapore, logistical issues, including shipping delays and port congestion, further drove up freight rates. With vessel arrivals up 4.5% year-on-year, berth wait times extended. The chemical market, particularly affected by these disruptions, faced higher import costs and potential supply shortages, prompting companies to adjust their supply chain strategies or increase local inventories.
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.
