Plummeting Upstream Sulphuric Acid Prices Slowdowns Copper Sulphate Market in India
- 01-Jul-2022 4:29 PM
- Journalist: Jai Sen
New Delhi, India: The sluggish demand from the downstream agricultural sector has subdued the market sentiments for Copper Sulphate in India. In June, the prices of Copper Sulphate has plunged by approximately 1.5% from May month's prices. The values of Copper Sulphate in the domestic Indian market have been under pressure due to a sufficient supply of downstream fertilizers and falling upstream Sulphuric Acid costs.
As per the latest insights, the prices of upstream Sulphuric Acid have significantly dropped by approximately 6% from the prices observed in the third week of June 2022. Also, the prices of upstream Copper have weakened amidst dull metal demand and global recession fears in the major economy, the USA. The declining Copper and Sulphuric Acid prices and uncertainties in the terminal market have led to a fall in the benchmark prices of Copper Sulphate.
Furthermore, in India, the market participants have stocked up their fertilizers inventories to avoid any imbalance for the upcoming planting season, Kharif. The stockpiling of downstream fertilizers has tumbled the market demand and pressured the stockholder's quotations of Copper Sulphate to dip down. Also, the sanctions imposed by European Nations and the US on Russia have aided India, securing substantial supplies of fertilizers from Russia at deflated prices.
On the other hand, the fire incident in Freeport Energy Terminal, US, has increased the gas availability in the US market and significantly impacted the manufacturers' price realizations. However, it has reduced the sourcing cost of LNG for Indian market participants. As a result of sinking energy costs, a bearish trend has been observed in the market value of Copper Sulphate.
According to ChemAnalyst, the price dynamics of Copper Sulphate may reverse its existing downward trajectory and improve in the forthcoming weeks amidst the escalating demand due to the active planting season in India. In addition, the fluctuations in key energy raw materials will likely impact the manufacturing cost of Copper Sulphate, surging the commodity's price value chain in India's domestic market.