Prices of Magnesium Chloride Boosting in US Market
- 03-Jun-2022 3:28 PM
- Journalist: Nicholas Seifield
The prices of Magnesium Chloride are increasing in the USA, with prices hovering around USD 500/ton-USD 510/ton of Magnesium Chloride (FOB Texas). Due to their unique characteristics, magnesium derivatives are widely used in agriculture, pharmaceuticals, chemicals, and construction. Magnesium chloride suppresses smoke and is a flame-retardant. Magnesium derivatives are used to reduce the flammability of various materials. These properties are increasing the use of Magnesium Chloride in the US market. This is expected to boost flame retardants' demand and drive the global magnesium derivative market.
Magnesium chloride is one of the key segments in which K+S Group operates. Increased demand for food, reduced cultivated area, increased demand for Sulphur-free fertilizers, and increased magnesium deficiency in soil due to ammonia-based fertilizers are the demand for upstream Magnesium in the fertilizer industry. This is also strengthening the global market for Magnesium Chloride.
An increase in demand for upstream Magnesium and its derivatives supports the upward trend of Magnesium Chloride, thereby surging its prices. Volatility in the freight charges from the exporting countries Israel, Germany, and the Netherlands are indirectly putting cost pressure on the product. The war in Ukraine has compounded supply chain challenges. Energy prices and inflation, raw material shortages, logistics breakdowns, and talent shortages exacerbate the supply shock.
Ports, vessels, and containers are critical to trade in the US, and logistics breakdown supports the price spike. This is also causing a shortage of Magnesium Chloride in the US market, leading to an increase in prices. Supported inflation in the US economy due to the Russian invasion of Ukraine is also one of the reasons impacting the prices of Magnesium and its derivatives.
As per ChemAnalyst, the prices would elevate to a range of 1.0% in June in the USA compared to the previous month. Its increasing use for health benefits as body supplements is promoting the growth in the market among the consumers and is expected to increase the consumption in coming months.