Gloomy Downstream Activities Decline Zirconium Silicate Market in Europe

During March 2023, the cost of Zirconium Silicate observed a declining price trend owing to the weak demand from the downstream construction sector in the German market. Consumer sentiments show a mixed trend in March 2023, with a stagnant purchasing tendency and a slight decline in economic expectations. Consumer sentiment has improved for six consecutive months, albeit slower than in previous months. Along with this, the cost of shipping shows stable throughout Europe in March 2023.

On the other hand, the prices for Zirconium Silicate decreased in March 2023 due to the weak demand from the European region's downstream construction sectors. The cost of the Zirconium Silicate decreased, and fewer new orders were placed in the domestic and international marketplaces. In addition, the European Central Bank (ECB) increased interest rates significantly by 50 basis points in response to recent banking sector turbulence, indicating that it is prepared to support banks with liquidity. Demand frequently declines as interest rates rise, which might be bad for the global construction sector.

The Zirconium Silicate was available in sufficient quantities, and there was no significant issue with the market's supply chain. Industrial activity is being boosted by reducing energy prices and easing supply constraints for intermediate products.

As per ChemAnalyst, the price of Zirconium Silicate hovered around USD 2713/MT on an FD Hamburg basis with a depreciation of 2.3% during March 2023.

The second half of the year will see a recovery for the German economy, and long-term inflation will decline as the labor market remains strong and private consumption is stabilized.

According to ChemAnalyst, the price of Zirconium Silicate will likely decline in the upcoming weeks due to the drop in new orders from the end-use industries. It is anticipated that the Zirconium silicate will likely depreciate from 1% to 1.5% in April 2023.