High Input Costs Push Magnesium Sulfate Prices Upward Globally
- 30-Jun-2022 3:15 PM
- Journalist: Harold Finch
The price trends of Magnesium Sulfate have witnessed an upward inclination amidst growing global demand. Increased input cost, export hindrances on China, and supply turmoil unleashed by the Russia-Ukraine war have demonstrated substantial price gains in the Magnesium Sulfate market across several regions. The profound utilization of Magnesium Sulfate in chemicals, agriculture, pharmaceuticals, and other end-use industries contributes to the global market expansion.
As per the latest insights, in Germany, the price realizations of upstream Sulphuric Acid have risen approximately by 2.2% from the prices observed in the third week of June 2022, imparting upward pressure to the downstream agriculture sector. The unprecedented energy crisis in Europe's largest economy after the curbed Russian gas supplies exacerbated by Russia's conflict in Ukraine has dwindled the manufacturing costs of Magnesium Sulfate in the domestic region. However, to avoid the winter gas shortages, the country is contemplating turning to coal to compensate for the diminished capacity of crucial energy raw materials.
In India, the continual surge in quotations of upstream Sulphur amid the rising inflationary pressure because of the European Nations' conflict with Russia has inflicted the operating costs of Magnesium Sulphate in the domestic market. In addition, the solid downstream agricultural demand as India entered the Kharif planting season has extensively boosted Magnesium Sulfate's market sentiments. Although to counter the steep rise in downstream fertilizer costs, the Indian government has emphasized doubling the subsidy amount. As a result, the market value of Magnesium Sulfate has climbed by approximately 5% from May's prices.
As per ChemAnalyst, the price trends of Magnesium Sulfate may witness a bullish trend globally in forthcoming weeks. Improved demand from the downstream agriculture sector due to seasonal hype and increased feedstock prices due to inflationary upsets released by Russia's attack on Ukraine will likely escalate stockholders' quotations, exerting significant pressure on the price value chain of Magnesium Sulfate worldwide.