Fumed Silica Prices: Pricing, Trend, News, Analysis | ChemAnalyst

North America:

In the third quarter of 2023, the performance of the North American Fumed Silica market, particularly in the United States, displayed a nuanced trajectory. The initial two months of the quarter witnessed a roughly 4% uptick in the product’s price in the US market, primarily attributed to escalating labor costs and inflation affecting construction materials. This price surge surpassed the frequency observed in the previous month. In response, domestic market traders proactively replenished their stocks in anticipation of future demand conditions. Contributing factors to the price surge included heightened demand from potential customers and limited stock availability. From June to July, manufacturing activities exhibited an increase, accompanied by sustained growth in total new orders. However, the pace of expansion decelerated for the second consecutive month, reaching its lowest rate since April. In the final month of the quarter, the price of Fumed Silica experienced a marginal decrease of approximately 0.5%, influenced by diminished demand from the downstream construction industry. Notably, the US Construction industry added 11,000 jobs in September 2023, maintaining historically low unemployment rates. Labor shortages prompted contractors to accelerate pay rate increases, while the number of individuals working on non-residential construction projects declined due to challenges in recruiting amid tight labor market conditions.

Asia:

In the third quarter of 2023, the Fumed Silica market in Asia, with a specific focus on the Japanese market, underwent fluctuations in performance. Initially, the product’s price experienced a 3.5% decrease over the first two months of the quarter, largely attributed to reduced demand from the construction sector. August, characterized by high humidity and the typhoon season in Japan, led to diminished construction activities, significantly impacting the demand for Fumed Silica, a crucial component in construction materials. Economic indicators mirrored this slowdown, with Japan’s manufacturing activities seeing a slight decline in August 2023, marking the third consecutive month of falling factory activity. However, there was a slight rebound in the price of Fumed Silica, rising by approximately 3% in the final month of the quarter. This increase was primarily fueled by a surge in demand from the construction industry as construction activities regained momentum. Additionally, input price inflation reached its highest level since May, driven by increased raw material costs, rising energy and freight prices, and the impact of a weaker yen. These factors, coupled with heightened production costs, exerted pressure on manufacturers to raise their output charges.

Europe:

Throughout the third quarter of 2023, Fumed Silica prices in the Eurozone experienced a steady decline, influenced by various factors, including a significant downturn in the construction industry. This decline was further exacerbated by increasing interest rates, which deterred potential construction projects. Notably, the German construction sector witnessed a reduction in housing activity, directly impacting residential building projects and contributing to decreased construction activities. Amidst this challenging environment, the broader economic landscape in the Eurozone presented mixed signals. The manufacturing sector displayed signs of contraction, reflecting difficult economic conditions by the end of the quarter. Despite falling input costs, businesses continued to implement cost-cutting measures, including reductions in employment, purchasing activity, and inventories. Consequently, many firms extended their production cutbacks, reflecting an overall sense of caution and uncertainty that permeated the economic outlook. The Eurozone’s economic performance in the third quarter of 2023 was characterized by the construction industry’s decline, subdued housing activity, and a cautious business environment grappling with various challenges.