Skyrocketing raw material prices kept the market sentiments of Copper Sulphate buoyed
- 21-Apr-2022 10:59 AM
- Journalist: S. Jayavikraman
The Copper Sulphate market showcased an upward surge due to inflation in the raw material prices, mainly Copper and Sulphur, amid the extended hostilities among the Eastern European Nations. However, supply disruption sconcerns over the logistics, and demand from the downstream agricultural industry remained firm for Copper Sulphate. Additionally, the gyration in the international crude oil prices coupled with the ignorance of the Russian energy supply has two-folded in tightening the market availability.
Copper was trading around $10 per kg in China, not far from an all-time high of $11 set on March 7th. Amid a tight market, investors considered lower supply from Chile's top producer. Additionally, the disruptions caused by the Ukraine conflict and the impact of the latest Covid outbreak in China impacted globally on both demand and supply chain. Chile's most significant producer decreased its copper output by 7.1% in February to 395,000 tonnes, following a 7.4 percent drop in January and a 2 percent drop in 2021 output. Meanwhile, the Chinese authorities have implemented a lockdown in Shanghai due to the resurgence of COVID, a central industrial hub and port, putting global supply chains in jeopardy. According to logistics operators, restrictions are already making it more challenging to move commodities and keep companies running. Moreover, the curtailed refining activity in China bullish the market sentiments for Sulphur.
In India, the demand for Copper Sulphate from the downstream agricultural sector remained firm. However, the Indian authorities were keen to extend their stockpiles for the upcoming harvesting season. Additionally, the soaring feedstocks prices, especially Sulphur, rose the market dynamics. Concerns about mining activity and rising metal prices in Peru forced domestic players to raise the Copper quotations.
As per ChemAnalyst, "The demand for Copper Sulphate will increase, Copper Sulphate price will soar on the back of firm demand from the domestic fungicides sector and the global rise in its price feedstock." Moreover, disturbance in mining activities and supply chain disruption will also affect the market. The sanctions imposed on Russia will keep affecting the raw material costs and supply chain.