Sharp Downturn in New Orders Stifles Sodium Silicate Prices in Europe

In April 2023, the price of Sodium Silicate witnessed a declining pattern due to the weak demand from the downstream construction sectors causing a stagnant global market. In addition to its superior thermal insulation capabilities and high-temperature tolerance, Sodium Silicate is a widely utilized material in a variety of industries, including construction, petrochemical, and pharmaceuticals.

In April, the German construction sector remained firmly in the contraction zone, with the pace of decline in overall industrial activity marginally accelerating due largely to a housing sector experiencing a worsening downturn. Pressure on the supply chains for building materials, such as sodium silicate and other products, was further reduced at the beginning of the second quarter.

Prominently, the volume of new work got by French constructors fell at the keenest rate for more than two years, inciting firms to decrease labor force numbers.

In addition, activity and new work decreased for the fifth month in April 2023, keeping the Italian construction industry in negative territory and declining Sodium Silicate consumption. A lack of new contracts again impacted sector performance. The government's super bonus plan revision and a lack of market demand have all continued to have an impact on construction order books.

In April 2023, the construction industry in the Eurozone's economy remained gloomy as businesses continued to reduce output as new orders continued to fall. Despite further contractions in commercial and infrastructure projects, housing was the primary drag on overall construction work.

According to ChemAnalyst, the cost of Sodium Silicate hovered around USD 307/MT on a FOB Hamburg basis with a depreciation of 3.7% during April 2023.

If the weak demand from the downstream construction sector continues, it is anticipated that the European market for sodium silicate will experience a declining pattern. When looking at the Eurozone as a whole, construction sector output is expected to fall in the second quarter, primarily as a result of higher interest rates, which this industry typically experiences as being particularly sensitive. In May 2023, it's expected that Sodium Silicate is likely to decline by 1% to 2% of its value.