Global Boron Price Showed a Declining Trend Throughout December as Market Slows Down
Global Boron Price Showed a Declining Trend Throughout December as Market Slows Down

Global Boron Price Showed a Declining Trend Throughout December as Market Slows Down

  • 04-Jan-2024 2:47 PM
  • Journalist: Patricia Jose Perez

In December, the price of Boron exhibited a declining trend in the global spot market as demand and consumption from downstream industries plummeted. The extraction rate from mines across major mining countries, such as India and Spain, remained stable, amid low manufacturing activity in most countries. Furthermore, consumption from the downstream agriculture sector decreased with the arrival of winter affecting market activity. Additionally, the usage of Boron in the end-use paper and pulp industry and glass industries saw a lack of significant placement of orders.

The Spanish spot market for Boron mining industries experienced a noticeable upward trajectory. This surge in mining activity is attributed to Spain's ambitious plan to derive over 50% of its energy from renewable sources this year, making it the first among the top five European countries in power demand to achieve this milestone. Projections indicate that Spain's renewable energy generation will surpass the 50% mark in 2023, outperforming France, Germany, Italy, and the UK. Presently, onshore wind technology contributes more than 20% to Spain's power generation, alongside hydropower, which, despite previously being the primary source of renewable energy in Spain, now constitutes 10%. This positive shift toward renewable energy sources is expected to enhance the efficiency of machinery and heavy vehicles in the Boron mining sector. Consequently, there has been a notable rise in global Boron inventory levels due to subdued consumption in the wake of these developments.

Meanwhile, demand for Boron from end-use sectors has decreased. In the steel-based industries across China, the export of flat hot-rolled Boron-added steel has been on the lower edge as the overseas Thailand government has initiated the second anti-dumping (AD) sunset review investigation for China. Moreover, a combination of headwinds, such as high-interest rates, new competition in California, and changing consumer habits, has adversely impacted the US-based glass recycler. The major glass recycler Strategic Materials has filed for bankruptcy amid market pressures, creating a pessimistic market for major players across the US and international markets. Hope arises as governments of various countries, such as India and many others, plan to uplift their agriculture sector and cultivation, leading to a rise in demand for Boron-concentrated fertilizers worldwide.

According to ChemAnalyst, the price of Boron is anticipated to remain on a slowly rising trend at the start of 2024. Meanwhile, hopes from the agriculture and fertilizing industries are expected to grow. Recent studies indicate that about 15-20% of soil in India is observed to have micronutrient deficiency, including Boron. The upcoming agricultural improvements in soil micronutrients to increase crop productivity, along with achieving nutrition security, will increase the demand for Boron in the Indian spot market. Furthermore, downstream glass and paper-based industries are also anticipated to grow as the economic and market situation recovers in the first quarter of 2024.

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