silica Pricing Assessment

  • Commodity Pricing

Markets Covered: 

inIndia

Silica Price Trend, Analysis and Forecast

Q1 2024

In Q1 2024, Silica Sand prices in India remained stable, with Ex-Bhuj prices hovering around INR 1810/MT. The market was influenced by steady demand from key industries such as glass manufacturing, construction, and foundries, alongside moderate raw material availability.

Supply constraints due to logistical challenges and mining regulations had a marginal impact, but consistent domestic consumption helped stabilize prices. Additionally, export activities remained subdued, keeping the local supply well-balanced. Moving into Q2, price movements will likely depend on seasonal demand fluctuations and potential policy changes in mining regulations.

Q2 2024

In Q2, silica sand prices in India, specifically Ex-Bhuj, saw a modest uptick of 1.1%, reaching INR 1,830/MT. The price increase was driven by stable demand from the glass, foundry, and construction sectors, coupled with logistics constraints and rising transportation costs. Additionally, steady procurement activity from ceramics and photovoltaic glass manufacturers contributed to the market firmness. However, adequate domestic supply and stable mining operations prevented any sharp price surges.

Q3 2024

In Q3, Silica Sand prices in India (Ex-Bhuj) rose to INR 1,865/MT, marking a 1.9% increase quarter-over-quarter. The price uptick was driven by steady demand from the glass, foundry, and construction sectors, coupled with rising transportation costs and logistical constraints in Gujarat. Additionally, supply chain disruptions and higher input costs contributed to the firming of prices, despite stable domestic production levels.

Q4 2024

In Q4 2024, Silica Sand prices in India witnessed a 3.7% increase, primarily driven by rising demand from the glass and construction sectors, coupled with higher transportation costs and fluctuating raw material availability. Increased infrastructure development and steady procurement from ceramics and foundry industries further fueled the price uptrend. Additionally, logistical constraints and seasonal supply fluctuations contributed to tightening market conditions, supporting price growth across major industrial hubs.

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is your trusted resource for tracking global silica price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the silica market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Track 's silica price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in silica prices

  • Glass Industry (2015-Present):
    • The growing demand for flat glass and container glass, driven by the construction and beverage sectors, has influenced silica pricing.
    • Expansion of solar glass manufacturing post-2020 increased the need for high-purity silica.
  • Construction Industry (2015-2023):
    • The Real Estate boom (2015-2019) drove demand for cement and concrete applications, supporting silica prices.
    • COVID-19 lockdowns (2020-2021) disrupted demand, leading to lower silica consumption and price declines.
    • Post-pandemic recovery (2022-2023) saw a resurgence in demand as infrastructure projects resumed.
  • Foundry and Ceramics (2016-2023):
    • India’s auto sector growth (2016-2019) boosted demand for silica-based molds and castings, pushing prices upward.
    • Post-2020, global supply chain disruptions caused raw material shortages, impacting silica availability and costs.
    • post-2020, global supply chain disruptions caused raw material shortages, impacting silica availability and costs.

Methodology and Specifications

silica Pricing Assessment Research Methodology

Data Collection and Sources

  •  Real-Time Market Data: We aggregate data from global exchanges, industry reports, and proprietary databases to provide accurate and timely assessments.
  • On-the-Ground Intelligence: Insights from producers, suppliers, and end-users in key production hubs are integrated to understand market dynamics.
  • Supply Chain Monitoring: Comprehensive tracking of raw materials (e.g., Quartz sand and diatomite) and production channels to assess supply conditions.

Event Tracking and Impact Analysis

  •  Geopolitical Tensions: Continuous monitoring of geopolitical events affecting supply chains and pricing.
  • Economic Shifts: Analysis of macroeconomic factors and sector-specific demand to predict market movements.

Production Capacity and Supply Analysis

  • Current Production Monitoring: Detailed tracking of operational Silica production facilities and their outputs.
  • Future Capacity Projections: Forecasting new capacity additions and technological innovations in Silica production.

Demand Forecasting

  • Sectoral Demand Analysis: Evaluating Silica demand in semiconductors, photovoltaics, and other applications.
  • Global Demand Dynamics: Regional demand variations and their impact on global pricing.

Pricing Model Development

  • Dynamic Pricing Models: Advanced models incorporating real-time data, historical trends, and market projections.
  • Scenario Analysis: Assessing potential market conditions under various scenarios.

Reporting and Client Support

  • Comprehensive Reports: Detailed analyses of current and future price trends, with actionable insights.
  • Ongoing Support: Continuous updates and expert advice tailored to client needs.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Silica pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

CAS No

HS Code

250510

Molecular Formula

silica

Silica is a high purity, naturally occurring mineral composed primarily of silicon dioxide (SiO₂). It is widely used in industries such as manufacturing glass, foundry casting, construction, ceramics, and water filtration due to its excellent hardness, chemical stability, and high melting point. Available in different mesh sizes and purity levels, silica sand serves as a key raw material in producing glass, molding metal parts, and enhancing durability in construction applications.

Packaging Type

50 kg Bag

Grades Covered

(Silica Sand) Industrial grade

Incoterms Used

Ex-Bhuj

Synonym

Silica

Quotation Terms:

Bulk Quantity

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Property Specification
SiO₂ (Silicon Dioxide) Content 95% – 99.8%
Fe₂O₃ (Iron Oxide) Content ≤ 0.01% – 0.3%
Al₂O₃ (Aluminum Oxide) Content ≤ 0.1% – 1%
CaO (Calcium Oxide) Content ≤ 0.05% – 0.5%
MgO (Magnesium Oxide) Content ≤ 0.05% – 0.3%
LOI (Loss on Ignition) ≤ 0.5%
Moisture Content ≤ 0.5%
Specific Gravity 2.6 – 2.7 g/cm³

Applications

Glass Manufacturing • Used as a primary raw material in the production of flat glass, container glass, fiberglass, and specialty glass. • Provides transparency, strength, and durability. 2. Foundry Industry • Used in metal casting as a molding material for ferrous and non-ferrous metal casting. • High thermal resistance and strength make it ideal for foundry sand. 3. Construction Industry • Used in concrete, mortar, and cement production. • Acts as a filler material in asphalt and roofing shingles. • Applied in grouts and floor leveling compounds. 4. Hydraulic Fracturing (Frac Sand) • Utilized in oil & gas extraction during hydraulic fracturing (fracking). • Enhances the permeability of rock formations by keeping fractures open. 5. Ceramics & Refractories • Used in ceramic tiles, sanitary ware, and tableware. • Provides thermal stability and high melting point properties. 6. Chemical Industry • A raw material for silicon production used in silicon metal, silica gels, and silica-based chemicals. • Used in sodium silicate production for adhesives and coatings. 7. Paints & Coatings • Acts as a filler and extender to improve durability, anti-corrosion properties, and weather resistance. 8. Water Filtration • Used as filtration media in water treatment plants. • Removes impurities, sediments, and suspended particles. 9. Abrasives • Used in sandblasting, surface preparation, and industrial cleaning. • Found in grinding wheels and sandpaper. 10. Electronics & Semiconductors • A precursor for high-purity silicon used in semiconductor chips and photovoltaic cells.

Disclaimer

Silica price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for silica. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence the pricing of Silica? +

The pricing of Silica is influenced by several factors, categorized into supply-side, demand-side, macroeconomic, and regulatory aspects. Here’s a detailed breakdown:
1. Supply-Side Factors
a. Raw Material Availability
• Quartz Sand & Diatomite: Silica is primarily derived from quartz sand, diatomite, and other silica-rich sources. Limited availability or fluctuations in mining output impact prices.
• Geographical Distribution: Countries with abundant quartz reserves (e.g., China, the U.S., Brazil, and India) have competitive pricing, while import-dependent regions face higher costs.
b. Mining & Production Costs
• Energy Costs: The extraction and processing of silica require significant energy, and fluctuations in electricity, natural gas, or oil prices directly impact production costs.
• Labor Costs: Higher wages and stricter labor laws in certain regions increase operational expenses.
• Machinery & Technology Costs: Advanced refining methods (e.g., ultra-pure silica for semiconductors) add to production expenses.
c. Processing & Refinement
• Purity Levels: Higher purity grades, such as fumed silica or ultra-high-purity silica, are more expensive due to additional refining.
• Manufacturing Technology: Newer methods like sol-gel processing for specialty silica (e.g., colloidal silica) can drive up costs.
d. Logistics & Transportation
• Freight Costs: As a bulk commodity, silica’s transportation cost significantly influences its price. Ocean freight fluctuations and fuel prices impact the final delivered cost.
• Proximity to Markets: Local sources reduce logistics expenses, while distant supply chains (importing silica from major producers like China) add costs.

How do feedstock prices impact Silica? +

Feedstock prices impact Silica pricing primarily through fluctuations in the cost of quartz sand, diatomite, and other silica-rich minerals, which serve as raw materials for silica production. If mining costs increase due to higher energy prices (electricity, fuel, or natural gas), labor expenses, or stricter environmental regulations, silica production costs rise, leading to higher market prices. Additionally, refining processes for high-purity silica, such as fumed silica or precipitated silica, are energy-intensive, making them sensitive to fluctuations in oil, gas, and electricity prices. Disruptions in the supply of raw materials, whether due to logistics, geopolitical issues, or regulatory constraints, can create supply shortages, further driving up silica prices in the market.

What is the relationship between Silica prices and inflation? +

Silica prices and inflation are closely linked, as inflation affects production costs, transportation expenses, and overall market demand. When inflation rises, energy costs, labor wages, and raw material expenses increase, leading to higher silica production costs, which are often passed on to consumers. Additionally, inflation-driven currency depreciation can impact import and export dynamics, influencing silica prices globally. Conversely, silica prices can also contribute to inflation, especially if they significantly rise due to supply shortages, increased demand in industries like construction, electronics, and automotive, or geopolitical factors disrupting supply chains.

How can I track Silica Prices? +

PriceWatch, a leading procurement intelligence firm, offers a comprehensive suite of tools and services to help you effectively track commodity prices.
Some of the key benefits of using PriceWatch include:
Real-time Data: Access to up-to-date market intelligence and data on commodity supply chains.
Expert Analysis: Insights from industry experts to interpret market trends and identify potential risks.
Risk Assessment: Tools to assess supply chain vulnerabilities and develop mitigation strategies.
Benchmarking: Comparisons of commodity prices and sourcing practices to optimize procurement decisions.
Supplier Intelligence: Detailed information on suppliers, including their financial health, production capacity, and sustainability practices.

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