Magnesium Sulphate Prices Demonstrate Mixed Market Sentiments Across the Globe
- 17-Aug-2022 5:43 PM
- Journalist: Francis Stokes
The economic downturn catalyzed by Russia's invasion of Ukraine and the COVID lockdown in China has triggered a slowdown in global growth. It has substantially weighed on consumer sentiments in the first two quarters of 2022. In addition, the higher-than-expected inflation in the USA and European countries has sparked tighter financial conditions, fuelling the uncertainties in the price of several commodities, including Magnesium Sulphate. The stiff monetary policies have further induced debt distress in developing economies and emerging markets.
As per the data, the price dynamics of Magnesium Sulphate have remained on the lower edge of the Chinese market. The Magnesium Sulphate market has significantly contracted, and the price offered has plummeted by double-digit figures on a month-to-month basis. On the upstream price front, Sulphuric Acid prices slumped by 9% last week, prompting negative cost pressure on the market value of Magnesium Sulphate in the domestic market. The market participants have informed that the low operating rates of chemical enterprises amidst deterred trading environments have resulted in bearish market sentiments for Magnesium Sulphate across the country. In addition, the vanishing export strength has further blown the Chinese economy, forcing the manufacturers to slash their offers as the demand showcases no significant growth.
Furthermore, in South Korea, the plunging inquiries from the downstream agricultural sector have imbalanced the supply-demand outlook, deteriorating the pricing trend by nearly 10% last month. On the other hand, the Indian Magnesium Sulphate market surged by 2.2% last month amidst the seasonal hype from the terminal fertilizer market. Similarly, the supply-chain disruptions in European countries have further pushed the Italian market to demonstrate a surge of nearly USD 8 per ton in last month's observed costs.
As per ChemAnalyst, the Magnesium Sulphate price offers are likely to witness a declining trend in the near term owing to weak demand fundamentals from the downstream agricultural sector. The tumbling Sulphuric Acid costs will also captivate the market growth of Magnesium Sulphate in the forthcoming weeks. However, the reduced interest rate by the Chinese government to ramp up the economic slowdown might strengthen the collective sentiments of the domestic market players is anticipated.