Varying Demand for Potassium Silicate Leads Price Fluctuations in Asia, Europe Sustains Stability

In April 2024, the global Potassium Silicate market experienced varying trends, with the European region maintaining stable prices while the Asian market saw mixed trends. These price disparities across regions stem from various factors influencing supply and demand dynamics within the industry. Reduced prices in Asian markets, particularly in China and South Korea, can be attributed to sluggish demand from downstream sectors like glass, coating, and construction sector. Despite favorable weather conditions supporting construction activities, global demand has remained lackluster.

Supply disruptions in key trade routes, compounded by geopolitical tensions and economic challenges in Europe, have further suppressed the demand for Potassium Silicate. Further, seasonal factors and decreased demand from the construction sector have impacted Chinese Potassium Silicate demand. Consequently, these factors have led to price fluctuations, with a 2% decrease in Potassium Silicate glass grade Spot Ex-Shenzhen (China), while the Indian market experienced a 3% increase for Potassium Silicate glass grade Ex-Bhiwani. In contrast, European markets maintained stability during this period.

In the European Potassium Silicate market, prices remained steady, after inclining the previous month. This stability can be linked to a balanced gap between supply and demand. However, despite this equilibrium, demand for Potassium Silicate remained muted, largely influenced by sluggish activity within the downstream construction sector amid a backdrop of challenging economic circumstances. Concurrently, supply-side challenges persisted due to disruptions in the Red Sea and geopolitical tensions in the Middle East, nevertheless, the prices remained declined due to weak demand. Furthermore, the manufacturing sector across the Eurozone experienced a deepening downturn in April, amplifying the strain on Potassium Silicate demand further.

During this period, the Asian market witnessed fluctuations, with prices declining in China and South Korea while the Indian Potassium Silicate market experienced an increase. The drop in Potassium Silicate prices was primarily influenced by weak demand from the construction sector. Although construction projects began to resume towards the end of April in China, demand remained subdued compared to the previous year, with slow project advancement and overall subdued prices. Factors like funding limitations have hindered the start of new projects, leading traders to exercise caution in accepting new ventures. However, the rise in the price of the product from the Indian market can be attributed to the ongoing evolution of the construction sector in India. The surge in the use of Potassium Silicate is expected to persist due to strong demand from the construction, housing, and infrastructure segments, where new projects are emerging nationwide. However, the price trend for the product is forecasted to continue its downward trajectory as demand is anticipated to decrease across the global market.