High Production Costs Weigh on the Ulexite Prices in the US
- 11-Nov-2022 3:00 PM
- Journalist: Bob Duffler
The price of Ulexite in the US has continued to rise as demand in domestic and international markets has remained robust in October 2022. Feedstock Boron prices have also pushed up, making Ulexite production even more difficult in the US. The rising use of low-carbon units is putting pressure on the mining sector in the United States.
Additionally, shipments from the US have recently decreased because of lower domestic supply due to increased freight costs and rising currency rates. Boron and Ulexite's already troubled worldwide supply chain has been put under more strain. As a result, fewer imports from the US to India have led to an increase in Ulexite pricing in the global market. Ulexite prices in the Indian market also rose as a result of limited imports, with an increment of around 7% during October 2022.
Due to the cost of packaging and processing, which has grown along with the price of natural gas, Ulexite's prices in the US increased by around 2% in October 2022. Fundamentals in demand for the product from the glass, fiber, and fertilizer industries have significantly increased the opportunities for producers in the Ulexite market. Following these benchmark events, Ulexite prices were estimated to be approximately USD 790/MT in October 2022 on a FOB Savannah basis in the US.
According to ChemAnalyst, the supply tightness could persist as demand continues to increase, primarily due to increased demand from the electric transportation, clean energy, food, and domestic security industries. This current imbalance is manifesting with increased pricing across various boron derivatives. If these supply-demand trends continue, we believe future boron contracts could reflect favorable pricing terms based on supply constraints, value in use, and inflation.