Category

Countries

Construction Slump Triggers Drop in Europe's Fly Ash Prices in Feb 2024
Construction Slump Triggers Drop in Europe's Fly Ash Prices in Feb 2024

Construction Slump Triggers Drop in Europe's Fly Ash Prices in Feb 2024

  • 12-Mar-2024 2:36 PM
  • Journalist: Jung Hoon

During the middle of the first quarter of 2024, the price of Fly Ash in the European region followed a bearish pattern, largely due to a slump in downstream construction activities. The construction industry's activity remained sluggish, primarily because of a lack of new projects, which in turn led to a decline in Fly Ash prices in the European market. Factors such as high-interest rates and uncertain economic conditions made consumers reluctant to spend money, further impacting the construction industry and, subsequently, the Fly Ash market in the region.

In the European market, the demand for Fly Ash was already met with sufficient availability and stockpiles from the previous month, resulting in a decrease in fresh orders from potential customers. This situation was exacerbated by a broader economic environment characterized by client uncertainty, price pressures, and overall weakness. Slower decline in total industry activity was partially offset by a near-stabilization in civil engineering work. However, this did little to offset the sharp contractions in housing and commercial activity. Fly Ash enterprises struggled to navigate these difficult conditions, with many citing the challenging economic climate as a major obstacle. Despite efforts to adapt to these conditions, such as adjusting pricing strategies and enhancing marketing efforts, the industry continued to face significant headwinds. As a ripple effect, the cost of Fly Ash depreciated by approximately 6% in mid-way of Q1 2024.

Regarding supply, there was an abundance of Fly Ash in the European market to meet domestic needs; requests from outside the region decreased during this time due to the disruptions in the ocean route, which affected global trading activity, including Fly Ash. Further, the biggest decline in workers was observed in German construction companies, with France following closely behind. Due to the decline in new orders, businesses continue to have a negative outlook for output in the upcoming months. For the past two years, building enterprises in the Eurozone have reported a loss in confidence. German companies were the main source of this negative feeling, while pessimism was also noted in France. Italian construction companies, however, continued to be upbeat.

Given the downturn in the European building industry, it is anticipated that Fly Ash prices would drop in March. Overall, while interest rate cuts by the European Central Bank (ECB) can provide some relief, a broader economic recovery will be essential for stimulating investment in construction and driving growth in the sector.

Related News

Fly Ash Prices in Europe See Modest Drop in May Due to Low Demand and Easing Supply
  • 12-Jun-2024 3:50 PM
  • Journalist: Harold Finch
Fly Ash Price Decline in China: Impact of Weak Construction Sector
  • 13-May-2024 3:39 PM
  • Journalist: Rene Swann
Germany Construction Slump Reflects in Fly Ash Price Decline
  • 05-Apr-2024 2:44 PM
  • Journalist: Patricia Jose Perez
Surat Chemical Plant Experiences Major Fire Incident
  • 01-Dec-2023 12:23 PM
  • Journalist: S. Jayavikraman