Magnesium Powder showcases market disparity among different regions
- 28-Apr-2022 3:05 PM
- Journalist: Patrick Knight
In terms of market demand, the price of Magnesium powder slipped this month in China, with supply exceeding demand. In April, the prices were reduced to USD 2590/ton of Magnesium Stearate FCC FOB Shenzhen and USD 245/ton of Magnesium oxide powder FOB Qingdao with a monthly declination of 6.8% and 7.5%, respectively. The production units among the manufacturers ran stably this month with surging efficiency of the plant resulting in stockpiling of product. The accumulation of new production stock and surging existing stock caused the Magnesium producers to face the dilemma of oversupplies in the regional market. As of 15th April, Magnesium transaction prices in Fugu Shaanxi dropped by USD 454/ton. Many downstream ventures in the Yangzi River delta restrained operations due to surging covid cases in Shanghai. However, the prices rebounded towards the end of the month when manufacturers raised their price quotations with surging demand from domestic and overseas markets.
In the United States, the prices of Magnesium powder started surging due to delaying cargoes from the significant exporter, China, due to port congestions and rising covid cases in the Chinese market affecting the export market. In April, the prices surged to USD 3350/ton of Magnesium Stearate FCC CFR Texas. Strong market sentiments and accelerating demand from the downstream food additives boosted the prices of Magnesium powder. Various Magnesium smelters in key domestic production bases have low stocks, with suppliers wary of uncertainty around the environmental control policy affecting the price trend.
According to ChemAnalyst, the price of Magnesium powder in the Asian market will increase in the upcoming month due to the expected rise in the downstream market. The crippling availability of the product in the regional market will support the prices. Surging freight costs and constraints logistics market will further boost the prices for the overseas market. In India, the prices will more likely surge due to advancing demand from downstream food additives and pharma enterprises. The prices are expected to deaccelerate with oversupplies from China in the US, resulting in weak market sentiments. In terms of inventories, they will increase at the ports of the US, which will remain a key factor for the declination of prices.