For the Quarter Ending December 2024
North America
During the fourth quarter of 2024, the North American Borax Pentahydrate market witnessed a price surge of 4% compared to the previous quarter. This upward trend was primarily driven by an increased downstream agricultural demand. The onset of the fall plantation season in the USA significantly boosted demand for Borax Pentahydrate, particularly in October.
This initial increase in demand intensified as the quarter progressed. Hurricane Helen in October disrupted supply chains, impacting the availability of raw materials and creating logistical challenges. Furthermore, escalating Sodium Tetraborate prices, a key input for Borax Pentahydrate production, significantly increased manufacturing costs during December 2024.
Global shipping disruptions, including labor strikes and the Suez Canal suspension, led to a 15% surge in transpacific freight rates in December, further elevating costs. Container shipping lines were imposing emergency surcharges in anticipation of potential disruptions at US East Coast ports due to impending strikes during December. Simultaneously, the arrival of the mid-crop season in the USA in December further intensified demand for Borax Pentahydrate, as agricultural activities peaked.
APAC
In the fourth quarter of 2024, the Borax Pentahydrate prices in the APAC region showcased an upward trajectory of 2% as compared to the previous quarter. In October 2024, the demand for Borax Pentahydrate started to increase from the downstream agriculture sector due to the plantation season of Rabi in India. However, despite a recovery in demand, the prices of Borax Pentahydrate remained stable in October due to cheaper freight charges which offset the uptrend. However, as the quarter progressed, the demand from the downstream agriculture sector surged significantly. Increased feedstock Sodium Tetraborate prices significantly impacted Borax Pentahydrate production costs during December 2024. Global shipping disruptions, including Yemen-based militant attacks and the Suez Canal suspension, led to a 15% surge in transpacific freight rates in December. While the immediate impact on the Indian market was limited, the overall increase in ocean freight rates since the Red Sea Crisis added to supply chain costs which made the imported Borax Pentahydrate prices expensive during this timeframe.
Europe
Borax Pentahydrate prices in the European region experienced a modest 2% increase during the fourth quarter of 2024 compared to the preceding quarter. The onset of the plantation season in October spurred an initial rise in demand from the agricultural sector in Turkey. However, this upward trend was temporarily countered by a decline in freight charges, leading to an overall price decrease in Borax Pentahydrate during that month. As the quarter progressed, agricultural demand surged significantly, exerting upward pressure on prices. Concurrently, escalating costs for Sodium Tetraborate, a crucial feedstock, significantly impacted the production costs of Borax Pentahydrate. Furthermore, global shipping disruptions, notably exacerbated by militant attacks in Yemen, resulted in a 15% surge in transpacific freight rates in December. Although the immediate impact on the Turkish market was limited, the overall increase in ocean freight rates stemming from the ongoing Red Sea Crisis contributed to a rise in supply chain costs, ultimately driving up the prices of imported Borax Pentahydrate during December 2024.