Asian Zirconium Silicate Market Trend Contradicts with Europe, as Supply Situation Varies

In August 2024, the global Zirconium Silicate market exhibited divergent trends, with prices declining in Europe while elevating in Asia. In Europe, the construction sector faced reduced demand from both local and U.S. markets, leading to downward pressure on prices. Compounding this, disruptions in the supply chain along crucial trade routes, ongoing geopolitical tensions, and congestion at major Asian ports exacerbated the situation. Conversely, the Asian Zirconium Silicate market experienced a different scenario. Although overall demand remained weak, prices surged due to supply constraints caused by port congestion and severe weather conditions.  The primary downstream sectors, such as ceramics, refractory materials, and construction, exhibited weak demand for Zirconium Silicate. As a result, the price of Chinese Zirconium Silicate Powder FOB Shandong surged by around 9.5%, however the price in the  German market  eased by 5% in August 2024.

The European Zirconium Silicate market has seen a significant decline in prices, primarily driven by reduced demand from the downstream construction sector. The construction sector in the Eurozone continues to grapple with substantial challenges, with August witnessing a continuation of falling housing activity, which have adversely affected the demand for Zirconium Silicate.  Further, there is growing skepticism among market participants regarding the sector's potential for recovery, which could influence future Zirconium Silicate demand in Europe. Moreover, congestion at major container ports in Northern Europe has intensified, with some carriers opting to skip port calls, though this congestion has not yet led to significant shipment delays. The interplay of sluggish demand, ongoing supply chain disruptions, and market uncertainty has collectively weakened the market, as producers face difficulties aligning production levels with reduced consumption, thereby impacting the price trajectory of Zirconium Silicate.

Meanwhile, the Asian Zirconium Silicate market saw an increase in prices this month, driven mainly by supply issues exacerbated by port congestion. Despite this, demand from the downstream construction, ceramics, and glass industries remained lackluster in both domestic and international markets. In China, a key market in the region, a slowdown in factory activity has heightened economic pressure, particularly amid an ongoing property sector crisis. Downstream construction units largely engaged in on-demand purchasing, with weakened speculative demand leading to sluggish shipments. Additionally, the monsoon season posed significant challenges; however, proactive inventory management helped alleviate some of its impact on demand. By the end of August, congestion at several East Asian ports led to increased wait times and affected the distribution of transshipment containers across various ports. These combined factors contributed to the rise in Zirconium Silicate prices in the Asian market.

According to ChemAnalyst, Zirconium Silicate prices are projected to rise in September 2024. The anticipated impact of Hurricane Francine on production in the USA could lead to supply disruptions affecting European markets. Additionally, scheduled maintenance at the Panama Canal may cause delays in cargo shipments. In China, the price of Zirconium Silicate is expected to increase due to Typhoon Yagi, which has caused significant damage in Vietnam, Taiwan, and parts of China. This natural disaster may influence price dynamics in the region.