US magnesium chloride prices rose in January, climbing about 0.9% as winter demand and Gulf Coast disruptions tightened spot availability. Domestic output at solar-evaporation facilities ran at winter utilization, with municipal replenishment supporting steady spot inquiries. A late January storm prompted precautionary shutdowns, curtailing hydrochloric acid output and tightening downstream schedules. Demand was uneven across end-use sectors: municipal de-icing remained the strongest driver, while residential construction softened on affordability pressures; commercial and infrastructure construction maintained moderate momentum, supporting use in concrete accelerators and construction chemicals; oilfield service demand in the Permian Basin held for brine-grade applications. On the supply side, natural gas remained stable, containing costs. HCl prices rose modestly, while magnesium hydroxide edged up slightly but with limited effect due to inventory buffers.
US magnesium chloride prices increased 0.9% in January 2026 as winter-driven demand combined with localized Gulf Coast disruptions tightened spot availability and firmed market sentiment. Early January saw domestic production running at typical winter utilization rates at solar-evaporation facilities in Utah and New Mexico, while early-to-mid month municipal replenishment supported steady spot inquiries. The dynamic shifted late in the month when a severe Gulf Coast winter storm beginning January 24 prompted precautionary shutdowns, including actions by INEOS in Houston, which curtailed hydrochloric acid output and weighed on magnesium chloride production schedules.
Demand was uneven across end-use sectors. Municipal de-icing remained the strongest driver for magnesium chloride as northern municipalities completed routine replenishment after initial snowfalls, sustaining spot activity comparable to December. In contrast, residential construction softened amid affordability pressures, reducing that segment’s contribution to magnesium chloride volumes. Commercial and infrastructure construction maintained moderate momentum, supporting use in concrete accelerators and construction chemicals, while oilfield service demand in the Permian Basin held steady for brine-grade applications. Construction employment rose by 23,000 positions in January and the labor demand gap narrowed to 2.1%, signalling underlying project continuity, according to ChemAnalyst analysis. Export interest from India and Italy also provided incremental support to magnesium chloride prices.
On the supply side, natural gas remained broadly stable, helping to contain evaporation and flaking costs at brine/evaporation facilities. However, rising hydrochloric acid prices and precautionary HCl outages late in the month tightened magnesium chloride production schedules; hydrochloric acid was up roughly 1.7%, while magnesium hydroxide increased about 0.5% but did not materially alter economics thanks to prior inventory coverage. Producers including INEOS initiated precautionary shutdowns in response to the Gulf Coast storm beginning January 24, which constrained HCl availability and tightened spot supply. Prior inventories provided a buffer through much of the month, but localized logistics and production interruptions amplified short-term scarcity and supported firmer magnesium chloride price moves.
Looking ahead, our analysts expect a mixed trajectory for magnesium chloride through mid-2026, with near-term cooling as winter de-icing demand eases likely to pressure February prices, followed by a stronger spring as construction activity, dust suppression and wastewater treatment lift magnesium chloride demand into March and April. The current outlook for magnesium chloride shows a pullback in February followed by a notable rebound in March, with further modest fluctuations through early summer driven by inventory replenishment, seasonal maintenance and competitive export dynamics.
