Active Downstream Inquiries Reinforce the Indian Copper Sulphate Market
- 27-Sep-2022 4:22 PM
- Journalist: Jai Sen
The active global demand and the emerging requirements of aligned terminal industries have accelerated the market growth of various chemical fertilizers, including Copper Sulphate. The market players have aimed to boost production levels to meet regional and domestic market inquiries. In addition, the inflating downstream fertilizer demand in India has resulted in increased energy requirements for the upcoming quarter, pressuring the production costs of Copper Sulphate in India.
In India, Copper Sulphate (Crystalline Grade) prices demonstrated a stable trend last month owing to active demand fundamentals from the downstream market. The steady market dynamics of upstream Sulphuric Acid did not offer much cost support to the market value of Copper Sulphate. Furthermore, on the input material price front, the supply situation of coal has eased toward the end of the third quarter. The data shows that domestic coal production reached a historical high of 253 million tonnes (MT) by August, with a 21% growth. The coal stocks are at an adequate level to meet the electricity demand from the manufacturing plants.
However, foreseeing the enhanced consumption from the downstream fertilizer market, the government of India has intended to launch a Pradhan Mantri Promotion of Alternate Nutrients for Agriculture Management Yojana (PM PRANAM) to reduce the usage of chemical fertilizers, emphasizing the use of organic and bio-based fertilizers. This initiative might pressure the terminal consumer sentiments and impede the price realizations of chemical fertilizers across the nation.
As per ChemAnalyst, the fluctuating upstream Sulphuric Acid and input material costs are anticipated to impact the market fundamentals of Copper Sulphate in the domestic region. The adequate coal inventories are likely to impart a minimum cost pressure to the price dynamics of Copper Sulphate. However, the upcoming Rabi season might improve the demand fundamentals and strengthen the market value of Copper Sulphate in the forthcoming weeks.