Indian Magnesium Hydroxide Prices Continued to Rise Amid High Feedstock Cost and Growing Demand

Indian Magnesium Hydroxide Prices Continued to Rise Amid High Feedstock Cost and Growing Demand

Peter Schmidt 19-Sep-2025

The India Magnesium Hydroxide market is in an upward momentum in September 2025 with demand continued to stay firm following a growth in prices in August. Increased demand along with effective supply chain and growing export keeping the demand high. A stable supply due to stable production in India, and high feedstock cost pushed the prices upward. Moderate price increase is anticipated within the next few weeks due to firm demand and growing feedstock cost.

On the demand side, Magnesium Hydroxide experienced a sustained uptick in the Indian market during the first half of September 2025. The demand for Magnesium Hydroxide strengthened significantly, driven by active procurement from the pharmaceutical and healthcare sectors. This increased purchasing momentum reflected growing confidence in market stability and future consumption prospects. Manufacturers reported a notable rise in order volumes for Magnesium Hydroxide, supported by improved manufacturing activities. The surge in new inquiries from downstream buyers further indicated positive market sentiment. Low inventory levels among suppliers prompted accelerated restocking of Magnesium Hydroxide, fuelling additional buying activity. Simultaneously, demand remained stable with consistent export orders and new inquiries from international markets. The positive demand trend for Magnesium Hydroxide was reinforced by increased supply chain efficiencies and a robust domestic manufacturing environment, contributing to a persistent surge in procurement activity during this period.

On the supply side, Magnesium Hydroxide in India was steady in early September 2025 despite supplier inventory decline. Manufacturing was steady and supply was consistent which helped to maintain overall inventory. However, prices started to increase due to rising input cost. Cost of feedstock like Sodium Chloride was increasing which was putting upward pressure on Magnesium Hydroxide prices. In August 2025 prices increased due to these higher feedstock cost which increased the production cost. Government’s Production-Linked Incentive (PLI) Scheme supported the manufacturing, with ?1.97 lakh crore allocation to various sectors including pharmaceuticals. Also supply chain synchronization and increased manufacturing activity helped to maintain the product availability despite the cost pressure. Overall input cost and strategic policy support increased the Magnesium Hydroxide prices during this period.

Diving deep into ChemAnalyst’s Quantitative Analysis

What Annual Trend of Magnesium Hydroxide Shows?

The 2023-2025 annual trend of Magnesium Hydroxide in the India was a mixed trend, based on seasonal factors, inventory levels and downstream demand. Magnesium Hydroxide prices were mostly range-bound but reached their peak in March 2024, after a consistent increase that started in the first quarter of 2024. After that Magnesium Hydroxide prices stays almost in a downward trend and in 2025 its trading lowest in 3 years. The volatility in Magnesium Hydroxide prices observed to be seasonal between September and December. In 2023 a sharp upward price seen in October and declined in Nov and December, whereas 2024 registered a continuous decline from October to December. These changes were also strongly related to variations in supply and strategic inventory placement. The production and supply activities by suppliers and distributors adjusted according to the demand cycles to ensure the supply and price of Magnesium Hydroxide in Indian market.

What current market indicates?

The India Magnesium Hydroxide market is currently under a stable supply and increasing demand conditions. Suppliers are citing an increasing demand scenario from downstream industries along with new enquires of orders. Along with that the increasing Sodium Chloride prices also increasing the manufacturing expenses and growing the Magnesium Hydroxide prices in domestic market. Indian manufacturers are working at efficient levels in order to constant Magnesium Hydroxide production but the growing demand keeping the Magnesium Hydroxide inventory level low, increasing prices in domestic market. Magnesium Hydroxide prices are forecasted to continue rising at a moderate pace as procurement planning for post-monsoon production cycles is expected to keep demand firm. Market participants are anticipated to maintain optimal inventory levels to avoid supply gaps which keep the demand firm and stable the prices in upcoming weeks. If there is no huge shift in market dynamics this trend will follow for next couple weeks. The players in the market are keeping a close eye on the developments with the anticipation of slowdown in Magnesium Hydroxide demand and increased inventory levels in coming months that will bring the prices down.

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