Silica Gel Price Trend and Forecast

Silica Gel Regional Price Overview

Get the latest insights on price movement and trend analysis of Silica Gel in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Silica Gel Price Trend for the First Half of 2024

During the first half of 2024, the global market for silica has seen a notable price decline, primarily driven by a significant slowdown in the downstream construction industry and high interest rates. The once-booming property sector in Europe, supported by previously low interest rates, has suffered as rapidly increasing rates and rising construction costs have led to project cancellations and company liquidations. This prolonged slump in construction has adversely affected silica producers, resulting in weakened demand and an oversupply in the market.
 

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The increase in production capacity by European silica manufacturers has exacerbated the situation, leading to a supply glut that has further depressed prices. Additionally, reduced input costs for producing silica have contributed to the downward trend. Despite a slight quarterly increase in GDP growth, Germany’s overall economic performance remains sluggish, with persistent structural weaknesses hindering a robust recovery.

The construction sector’s struggles, highlighted by a substantial reduction in building material production and a sharp decline in new orders, have further pressured silica prices. As a result, the market is anticipated to continue its downtrend unless a surge in new orders can reverse the current bearish sentiment. The combination of a weak construction sector, potential oversupply, and a faltering economy has led to a sustained decrease in silica prices throughout the first half of 2024.

Analyst Insight

According to Procurement Resource, the price of Silica Gel is expected to struggle with the depreciating market dynamics of the downstream industries and the weak stance of the global trading sector.
 

Silica Gel Price Trend for the Second Half of 2023

Silica gel is essential in moisture-sensitive industries like medicines, electronics, and food packaging because of its capacity to keep dry in small areas. Also, its non-toxic properties and stability in a broad temperature range increase its employability in various industries. The market for silica gel is anticipated to be strong, given the growing emphasis on product quality and preservation, particularly in sectors where moisture control and goods preservation are required.

In the latter half of 2023, initially, the fluctuating patterns in demand and the persistent sluggishness observed in downstream industries had a detrimental impact on the silica gel price trajectory. This downward trajectory was further exacerbated by the deceleration in the economic growth of China and various other Asian nations, posing challenges not only for the production sector but also for traders.

However, towards the year's end, the fluctuations began to stabilize, with a modest uptick in demand during the winter holiday season in the consumer sector. Moreover, there was a resurgence in automotive and construction activities across Asian countries during the final quarter of 2023. Nonetheless, the positive effects of this resurgence were only discernible towards the end of the year.

Analyst Insight

According to Procurement Resource, the price trend of Silica Gel is estimated to showcase slight stability in the forthcoming quarters as the shifting preferences of the consumer sector and rise in procurement rates of downstream industries.
 

Silica Gel Price Trend for the the First Half of 2023

Silica Gel is the amorphous form of silicon dioxide or silica, primarily used in detergents, cosmetics, painting, and coating industries.  In the first half of 2023, the Silica Gel prices exhibited mixed price trend; with a strong start at the beginning of January’23, the market showed positive momentum as the consumer sectors were growing. But as the inventory movement improved and new supplies kept pouring in, the market moved towards stability as the supply-demand dynamics started improving in moderation.

However, in the second quarter, overfilled inventories dominated other factors, and a dip was observed in the price trend owing to high supplies and uninterrupted demands. However, the global Silica Gel markets exuded stability in general throughout the said period.

Analyst Insight

According to Procurement Resource, given the stable supply-demand dynamics, the price trend for Silica Gel are likely to fluctuate in a narrow range in the upcoming months.

Procurement Resource provides latest prices of Silica Gel. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.