The monthly average price of silica sand exw China [Mintec Code: TT51] for October was $56.25/MT, representing a 2.2% year-on-year (y-o-y) decline. The price also constituted a 4.4% decrease for the three months to October 2023; however, market sources expect a fall of 10% in Q4 2023.
In recent months, silica sand production in China has reportedly been elevated, with an abundance of supply in the country. However, demand remains sluggish, in line with the recent manufacturing purchasing managers’ index (PMI) figures in China. For reference, the PMI manufacturing new orders index was 49.40 in November, after having re-entered contraction territory (below the 50-level) in October.
Given the softness in the underlying transport and wage costs, major drivers of silica sand prices, and weak demand, market players have expressed opinions that there could be further declines in silica sand prices in the coming months.
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