For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Boric Acid market witnessed a varying pricing landscape influenced by various factors. Overall, the pricing trend for Boric Acid in the region leaned towards a bearish trajectory. Notably, there was a significant decline observed in January 2024, primarily attributed to reduced demand from the downstream construction sector.
Additionally, subdued purchasing activity during the winter holiday season further exacerbated the downward pressure on prices. This adjustment was facilitated by improved supply conditions and a more balanced interplay between demand and supply dynamics. Although specific percentage changes were not provided, an overall decline in prices was noted when comparing quarterly performance to the corresponding period of the previous year.
Throughout the quarter, seasonal patterns were evident, with a decrease in demand observed during the winter holiday period. However, signs of market stabilization and gradual recovery began to emerge as the quarter progressed. These trends indicate the resilience of the Boric Acid market, with potential opportunities for recovery in demand and pricing dynamics in the subsequent quarters.
APAC
The first quarter of 2024 has been characterized by a mixed pricing environment for Boric Acid in the APAC region. Overall, market prices have remained stable, with some fluctuations observed in certain countries. In India, the largest price changes have been seen, with a significant decrease of 1.6% in January, followed by a slight increase of 2.9% in February. This trend can be attributed to various factors, including seasonal demand patterns and supply chain disruptions. Seasonality has played a role in the price changes, with demand typically lower during the month of December due to destocking by traders. This has led to a decrease in prices during that period. Furthermore, external factors such as the Red Sea crisis have impacted the supply chain, leading to supply disruptions and increased freight charges. This has contributed to the overall price volatility in the market. As the quarter comes to an end, the latest price recorded for Boric Acid Granular CFR JNPT in India stands at USD 1200/MT. This reflects a stable pricing environment, with prices remaining unchanged in recent months. Overall, the pricing environment for Boric Acid in the APAC region has been characterized by stability, with some fluctuations in certain countries. Factors such as seasonality and supply chain disruptions have influenced prices, but the market has shown signs of stabilization.
Europe
In the first quarter of 2024, Boric Acid pricing in the European region exhibited a consistent increase during the initial two months, driven by various factors shaping market dynamics. Notably, robust demand for Boric Acid across sectors such as coatings and construction played a significant role in propelling prices upwards. Additionally, disruptions in ocean routes adversely impacted international trading activities, further contributing to the price surge. Moreover, demand from importing nations remained strong, reinforcing market dynamics and sustaining upward pressure on prices. However, as March approached, prices experienced a dip due to weakened client demand, particularly evident in the German construction sector. Market uncertainty and elevated interest rates influenced the continued decline in the German construction industry, leading to reduced purchasing activity and downsizing by construction firms. Consequently, demand for Boric Acid witnessed a decrease during this period, marking a shift from the earlier upward trend. This fluctuation in pricing and demand underscores the dynamic nature of the Boric Acid market in Europe, influenced by both domestic and international factors. It highlights the importance of monitoring market trends and adapting strategies to navigate through evolving market conditions.
For the Quarter Ending December 2023
North America
The Boric Acid price trend witnessed frequent fluctuations in the North American market during last quarter of 2023.
According to the report of Ioneer limited, a Boric Acid manufacturing company in USA, In the October month market observed reduction of around 38% in Boric Acid price but it has been observed that gradually market was grappling to restore the price in second and in the third week of the month. Market noticed the downfall in price in the mentioned timeframe due to the US export hurdles, US is the globally one of the major exporters of the Boric Acid mining ore i.e. Borax (sodium borate) and Asian pacific countries are the major importers from US. Export hurdles for the USA starts after the blockage of logistics sea rea routes for shipment of goods by the Iranian backed Yemini Houthi rebels that led the US to enter in proxy war against Iran.
It has been noticed that the slight rise in Boric Acid price in certain weeks of November and December amid the regular moderate demand from the downstream industries as well as demand from the importers. However, domestic mining of borax did not meet any disturbance in the entire timeframe and usual export will be continue after the logistics disturbance once over completely.
APAC
The price trend of Boric Acid in Asia pacific region has witnessed a mixed sentiments in the last quarter of 2023. It has been seen the bearish trend in the month of October owing to the escalating demand from the downstream industries i.e. Pharmaceuticals, fiberglass, agriculture and construction sectors. In Indian market, Boric Acid demand and price noticed the growing trend in the October, noticeably got a surge of approximately USD 20/MT due to the firm demand in downstream construction, textile and pharmaceuticals industries, festive season also contributed to the price boost owing to the improved public spending. However, the scenario changed in the next month, the month of December remains prominently dull for most of the chemical commodities and their prices fell, exception observed for those chemicals that observed scarcity or supply disruptions. This seasonal phenomenon was observed this December for Boric Acid too, where moderate to low consumption and global decline in demand affected prices of Boric Acid. At the same time, raw material Boron prices in the exporting market Türkiye declined during November and December, which has also supported this overall price downtrend in the importing market India. Conclusively, In Indian market, The latest settled prices of Boric Acid for the quarter ending December 2023 period remained at USD 1061/MT CFR JNPT (India) and analysts anticipated a positive price outlook for the upcoming quarter owing to the upward demand in downstream construction, textile, pharmaceuticals industry.
Europe
In the fourth quarter of 2023, Boric Acid price faces a decline in the European market primarily driven by the low consumption and ample stock holding by the domestic players which kept the demand-supply balanced. On the other side, cost of raw material from the exporters also decreased due to stable mining operation and low consumption which was evident by EXIM data, which shows lower imports from the major exporters like Turkey and US. Turkey, major boron ore producer, lowered the raw material cost for the European countries to keep their inventories of the material running amidst the ongoing red sea crisis. This red sea crisis forced Turkey to slow down its calcium borate export to the major consumers Asian pacific countries like China and Taiwan. But business with European nations continues via the road route. Another major side of this deflation is the decreasing demand for Boric Acid from the downstream industries. On the other side in Europe, Belgium has reduced its import by 75% correspondence to the first quarter of the 2023 as per the import trade data. The availability of alternative for Boric Acid in the downstream fertilizer industry is one of the major reasons causing the reduction of the demand in downstream. Conclusively, ease in red sea crisis can enhance the Boric Acid price in coming month.
