Stable Ulexite Prices in August: Boost in Extraction Rate and Upstream Demand in the US Market
Stable Ulexite Prices in August: Boost in Extraction Rate and Upstream Demand in the US Market

Stable Ulexite Prices in August: Boost in Extraction Rate and Upstream Demand in the US Market

  • 16-Aug-2023 12:34 PM
  • Journalist: Nina Jiang

In August, the price of Ulexite remained stable in the US spot market as the demand remained flat amid construction material prices remained at a similar level as of the previous month. The downstream usage in the paint, coating, paper, and pulp industries remained stable at the start of the second month of Q3. The extraction rate has been on a higher edge as technological advancements created ease in the mining process in the USA. The buyers were in wait and watched the situation as the market seemed to be unstable in the USA amid economic uncertainties.

The extraction rate of Ulexite has been on a higher edge in the US spot market as the new deals and upgradation increased the extraction rate in domestic mines. Firstly, the extraction of Ulexite boosted the Rio Tinto mine of California as it became the first mine to completely shift its heavy machinery and logistics over renewable diesel technology. This helped in providing better manufacturing and promoting the motive of the company’s reduction of carbon footprint. Additionally, Australian Strategic Material (ASM), an Australian mining company, has also signed a deal recently with the US-based USA rare earth magnet manufacturing company for a 5-year long-term supply of Neodymium Iron Boron (NdFeB) alloy from its Korean metal plant to ease the production of permanent magnets for industrial uses. This increases the extraction rate of Ulexite for downstream Boron fabrication in the US spot market.

Furthermore, the downstream paper and pulp industry had been stable in the first half of August, keeping the demand flat, but have kept the hopes high for upcoming weeks as the overseas European paper mill company Arctic Paper has invested USD 26 million in expanding and upgrading the biofuel installation at its Grycksbo mill of Sweden. This will increase the pulp production rate and increase the demand for Ulexite. Lecta’s Torraspapel mill in Spain has also boosted the usage of Ulexite amid the establishment of a recovery boiler via Valmet Industries, which will increase the pulp extraction rate in the overseas market. Meanwhile, Arauco, a global pulp-providing industry, has signed a deal with Cyngn Inc., a pioneer in AI-powered autonomous driving solutions for delivering 100 Ai-powered forklifts to increase pulp extraction and logistic activity in the domestic and global markets. This would increase the consumption rate and uplift the demand for Ulexite in the US spot market, indicating a boost in the Ulexite extraction rate.

In Addition, the end use of Ulexite in the Paint and coating industry has been quiet since the start of Q3 as the downstream demand from the construction and Automotive sectors was declining. The US government’s announcement of a hike in the federal interest rate and introduction of policies to uplift the market has given hopes to increase demand for Ulexite in the US spot market. Initially, the construction rate was on a lower edge as house sales decreased amid declining economic conditions. The demand is anticipated to have bullish sentiment in the USA as manufacturing activity is said to restart firmly in the USA. Along with that, the sales of Tesla are projected to have a high stake as the EV sector boost. This would lower the Ulexite inventory level in the USA.

According to ChemAnalyst, the price of Ulexite is expected to hike as the demand from the downstream paint and coating sector is likely to increase in the US market. The consumption rate tends to increase as the downstream pulp and paper industries try to expand their production rate. The aftermath of increasing interest rates is expected to grow the demand and size of the US Ulexite market.

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