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Sluggish Purchasing offtakes Decreased Global Magnesium Sulphate Prices in Dec 2023
Sluggish Purchasing offtakes Decreased Global Magnesium Sulphate Prices in Dec 2023

Sluggish Purchasing offtakes Decreased Global Magnesium Sulphate Prices in Dec 2023

  • 05-Jan-2024 1:59 PM
  • Journalist: Sasha Fernandes

In the concluding month of 2023, Magnesium Sulphate prices decreased by 7 to 9 percent in the international markets amid depressed demand and procurement activities from the end-user industries. Meanwhile, the Magnesium Sulphate inventory levels were adequately available in the market.

The production rates were firm in significant Magnesium Sulphate producer and exporter China. As per the sources, China's Manufacturing Purchasing Manager's Index inclined in December 2023 and recorded above 50 amid an improvement in new orders and business activities, indicating an expansion in the manufacturing sector activities. Consequently, Magnesium Sulphate supply rates were consistent with the market.

Meanwhile, the shipping activities were slightly affected in the USA. According to the sources, the decrease in the Panama Canal water levels during the past month due to dry weather conditions because of the El Nina effect resulted in a decline in Cargo rates. While in the US market, the demand depressed for fertilizer from the Horticulture sector. The orders for Epsom Salt remained moderately low from the pharmaceutical industries and personal care product manufacturers, especially after the Thanksgiving holiday and Black Friday sales. Consequently, Magnesium Sulphate offtakes were low, which raised the market inventory levels, and the Asian exporters reduced their quotations amid depressed demand and procurement activities from the end-user industries.

Concurrently, in the European market, Magnesium Sulphate prices decreased during the month amid depressed demand and procurement activities from the end-user industries. The demand remained low for fertilizer from the Horticulture sector. Meanwhile, the orders for Epsom Salt were average from the pharmaceutical industries and personal care product manufacturers.

On the contrary, the cost support was firm from the feedstock Magnesium because the market players did not want to sell goods at lower costs. Simultaneously, the cost support improved from the feedstock Sulphuric Acid amid inclination in the Sulphur costs due to the increased demand from agrochemical industries.

According to the ChemAnalyst data sources, at the end of December 2023, the Magnesium Sulphate CFR USGC prices witnessed USD 395/MT. Concurrently, Magnesium Sulphate FOB Hamburg quotations were assembled at USD 315/MT. Meanwhile, the Magnesium Sulphate FOB Qingdao quotations in China hovered at USD 85/MT.

As per the assessment, the Magnesium Sulphate prices will likely remain underwhelming in the global markets due to sluggish consumption rates and low offtakes from buyers. The reduced demand for Bath Salt in the beauty and wellness industry and Magnesium fertilizer in the horticulture sector during winter will negatively impact the prices. Furthermore, the inquiries of Epsom Salt generally remain moderate from the Pharma Sector. So, the adequate availability of stocks will decrease the prices.

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