For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American region witnessed a notable surge in Copper Sulphate prices, driven by a combination of factors that shaped the market dynamics. Elevated demand from various sectors, particularly agriculture, played a pivotal role in pushing prices upwards. The tight supply situation, exacerbated by high import costs and constrained availability, further fueled the price escalation. Additionally, favorable weather conditions in key agricultural regions boosted crop production, leading to an increased need for agrochemicals like Copper Sulphate.
Specifically focusing on the USA, the market experienced significant price fluctuations, with a clear upward trend dominating the quarter. The correlation in price changes highlighted a strong positive momentum, indicating a bullish market sentiment. Seasonality and demand-supply dynamics contributed to the price surge, with prices showing a significant increase from the first half to the second half of the quarter.
The quarter concluded with Copper Sulphate (Granular) commanding a price of USD 2560/MT CFR Texas in the USA, marking a substantial rise, and underlining the overall positive pricing environment that prevailed throughout the quarter. However, prices remained stable when compared to the previous quarter.
APAC
In Q3 2024, the APAC region witnessed a significant surge in Copper Sulphate prices, driven by a confluence of factors. Heightened demand from various industries, particularly the agrochemical sector, played a pivotal role in pushing prices upwards. The agricultural focus on optimizing crop yields, combined with strong market sentiment, exacerbated the supply-demand imbalance, leading to lower inventory levels and escalating prices. China, being a key player in the market, experienced the most substantial price changes. Factors such as increased demand, tight supply conditions, and high-cost support from feedstock materials contributed to the price fluctuations. The overall trend for Copper Sulphate prices in China displayed a positive trajectory, with a notable correlation between demand, seasonality, and price variations. The recorded 2.3% increase from the previous quarter and a 7% price difference between the first and second half of the quarter underscored the market's upward momentum. The quarter ended with Copper Sulphate (Granular) priced at USD 2350/MT FOB-Qingdao in China, reflecting a consistently increasing pricing environment.
Europe
In Q3 2024, the European Copper Sulphate market saw an overall upward trend in prices during the last two months, following a decline in the first month of the quarter, with Belgium experiencing the most significant price shifts. Several factors drove this surge. High import prices, combined with reduced agricultural output in Europe, led to supply constraints and increased demand for Copper Sulphate. Unfavorable weather conditions, including insufficient rainfall and extreme heat, impacted crop yields, particularly for corn and wheat, pushing farmers to use more agrochemicals to protect their harvests. Additionally, rising prices in Asia, driven by high feedstock costs and strong demand from the agrochemical sector, further influenced the European market. Belgium, in particular, saw a sharp price increase in the second half of the quarter, ending with a price of USD 2530/MT of Copper Sulphate (Granular) CFR Antwerp. However, prices remained stable when compared to the previous quarter. Market sentiment remained positive throughout Q3, driven by supply constraints, strong demand, and external market pressures. Plant disruptions and shutdowns also worsened supply shortages, further contributing to the price escalation across the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American copper sulfate market experienced a consistent upward trend, driven by robust demand across various downstream sectors and increased import prices from key exporting regions. Heightened household activities, escalating requirements in water treatment applications, and a recovering automobile industry bolstered the paint and coatings sector. Global supply chain disruptions, including port congestion and geopolitical challenges, further pressured prices.
In the USA, the market saw substantial price changes due to strong domestic demand and robust procurement activities. Seasonal factors, such as increased summer activities, boosted demand for copper sulfate in water treatment and agriculture. Heightened economic activities and increased industrial output fueled the price surge. Compared to the previous quarter, which recorded a 2% increase, the second quarter saw a 4% rise in prices from the first to the second half, underlining persistent upward momentum.
The quarter concluded with a bullish market sentiment, reflecting a positive pricing environment. The latest quarter-ending price for copper sulfate (granular) CFR Texas stood at USD 2480/MT, demonstrating the sustained surge driven by both domestic and global factors. Despite challenges from plant shutdowns and logistical disruptions, the pricing environment in Q2 2024 was positive, with strong indications of continued demand growth and price resilience.
APAC
In Q2 2024, the copper sulphate market in the APAC region experienced a notable decrease in prices, driven primarily by several key factors. The overall market witnessed a subdued demand environment exacerbated by adverse weather conditions, leading to diminished consumption in critical downstream industries such as agriculture and construction. This seasonal softness, combined with an oversupply situation, placed considerable downward pressure on prices. Additionally, disruptions in the supply chain, including logistical challenges and plant shutdowns, further contributed to the negative pricing environment.
In China, the most significant price changes mirrored the broader regional sentiment. Persistent hot and dry weather reduced agricultural demand for copper sulphate, resulting in a 2% price decline between the first and second halves of the quarter.
From a year-over-year perspective, the price change reflected a discernible downward trend, highlighting the market's sensitivity to external disruptions and supply chain issues. Copper sulphate prices declined by 13% compared to Q2 2023. Despite efforts to stabilize the market, the overall sentiment remained bearish. Compared to the previous quarter of 2024, prices showed a marginal 2% uptick, indicative of transient supply chain adjustments rather than a robust market recovery.
Concluding the quarter, the price of copper sulphate (granular) FOB-Qingdao in China stood at USD 2150/MT, clearly indicating a negative pricing environment throughout Q2 2024.
Europe
In Q2 2024, the European copper sulfate market experienced a consistent decline in prices, driven by several key factors. A noticeable reduction in demand from downstream sectors such as agriculture and construction, coupled with market oversupply, exerted downward pressure on prices. Supply chain disruptions, including transport bottlenecks and periodic plant shutdowns, exacerbated the situation. Noteworthy disruptions included the temporary closure of major production facilities like the Dow Chemical plant, contributing to market instability. Additionally, the appreciation of the USD against the Euro increased import costs, although weak demand overshadowed this inflationary pressure.
In Belgium, which witnessed the most significant price changes, a clear trend of declining prices was observed. Seasonality played a role, as the typical peak in water treatment demand during the summer did not materialize sufficiently to counterbalance the market glut. The price changes throughout the quarter depicted a downward trajectory, reflecting broader continental trends. Compared to the previous quarter, prices in Belgium saw a 2% reduction, further highlighting the bearish market sentiment.
Year-over-year, copper sulfate prices declined by 14% compared to Q2 2023, underscoring the market's sensitivity to external disruptions and supply chain issues. Ending the quarter, the price of copper sulfate (granular) CFR Antwerp in Belgium stood at USD 2380/MT, capping off a quarter characterized by a predominantly negative pricing environment. This decline reflects broader market dynamics and the challenges faced by the industry during this period.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American Copper Sulphate market faced notable challenges, witnessing persistent price declines. Multiple factors contributed to this downturn. Primarily, an oversupply of Copper Sulphate inundated the market, resulting in excess inventory levels. Additionally, the strength of the US dollar exerted downward pressure on prices. Meanwhile, the demand from agriculture industry amidst off season lull and limited consumption.
In the United States, Copper Sulphate prices experienced a 15% decline compared to the same quarter last year, continuing the negative trend from the previous quarter with a further 7% decrease. Price comparisons between the first and second halves of the quarter also revealed a 7% decrease.
Throughout the quarter, the pricing environment for Copper Sulphate in North America remained consistently negative, driven by factors such as oversupply, currency strength, and market uncertainty. The quarter-ending price for Copper Sulphate (CuSO4•5H2O, 25% Cu) FOB USGC in the USA was recorded at USD 2435/MT, reflecting the prevailing downward price trend.
APAC
The pricing environment for Copper Sulphate in the APAC region during Q1 2024 has been relatively stable, with some fluctuations observed in different countries. In India, which experienced the maximum price changes, the market showed a mix of bullish and bearish trends.
In January, the price of Copper Sulphate in India increased by 5.6% compared to the previous month. This was driven by heightened demand from the construction and pharmaceutical sectors. The housing market in India reached record levels in 2023, and this positive trend continued into 2024, contributing to the increased demand for Copper Sulphate. Additionally, the pharmaceutical industry saw robust growth, further driving up the consumption of Copper Sulphate.
However, in February and March, the market sentiment turned bearish, leading to a 5.1% decrease in prices. This was primarily due to subdued demand and oversupply in regional markets, coupled with a decrease in import prices from the international market. The agrochemical sector also remained subdued due to dry winters, further impacting the demand for Copper Sulphate. Despite a gradual improvement in demand from the downstream water treatment markets, overall demand remained low.
Europe
During Q1 2024, the European Copper Sulphate market encountered significant hurdles, marked by continual price declines. Several factors contributed to this downturn, notably an oversupply of Copper Sulphate, leading to an excess of stockpiled inventory. In Q1 2024, the European Copper Sulphate market witnessed a varied pricing landscape. Overall, prices experienced a modest uptick compared to the same period last year, albeit with a slight dip from the preceding quarter in 2024. Notably, the Netherlands observed the most significant price shifts, registering a 2% increase from the previous quarter. Demand-wise, there was moderate to high demand for Copper Sulphate driven by pre-season fertilizer purchases for spring planting and heightened usage in specialized industrial and greenhouse farming sectors. However, the market experienced demand slowdowns during the off-season.
For the Quarter Ending December 2023
North America
In North America, Copper Sulphate demand remains steady, driven by agriculture, water treatment, and industrial uses, with sectors like construction and infrastructure susceptible to fluctuations based on ongoing projects and economic conditions.
The prices of Copper Sulphate have remained firm in the US throughout the Q4 2023. While North American production capacity meets demand and global supply remains balanced, regional logistical challenges or unexpected production halts could disrupt supply temporarily, impacting prices.
The volatile price of copper metal, a key ingredient, affects production costs, potentially leading to upward adjustments in Copper Sulphate prices if volatility persists. Additionally, evolving environmental regulations concerning copper compounds may increase production costs in the long term, possibly resulting in price adjustments across North America.
Asia Pacific
In Q4 2023, the Asia Pacific Copper Sulphate market experienced dynamic pricing trends. Initially, prices rose due to robust regional demand and increased Copper feedstock costs. However, the pricing landscape later diverged across the region. China saw prices decline due to weakened demand, high inventory levels, and government interventions, while India maintained stability due to consistent demand and improved feedstock costs. Thus, after the conclusion of Q4 2023, Copper Sulphate prices in India were assessed at USD per MT 2548 per MT Ex-Mumbai. Southeast Asia experienced volatile price movements influenced by fluctuations in local demand and import dynamics. There were significant regional differences, with China witnessing a price decline, India remaining bullish, and Southeast Asia displaying fluctuating prices driven by local demand and import dynamics. Copper, feedstock costs played a crucial role, with global moderation in Q4 but ongoing regional disparities, copper prices show bullishness for the majority of Q4 2023. However, divergent trends emerged later in the quarter, especially in China, where ample inventory towards Q4's end led to price decreases. Trade dynamics also influenced the market, benefiting India with cheaper imports while impacting Southeast Asian markets with global price fluctuations.
Europe
Demand for Copper Sulphate in Europe is steady, mainly fuelled by its applications in agriculture, water treatment, and various industries. However, sectors like construction may see fluctuations depending on ongoing projects. Despite this, the overall European production capacity meets demand adequately, maintaining a balanced global supply that prevents significant price hikes due to shortages. Nonetheless, regional logistical issues or unexpected production halts could briefly disrupt supply and affect prices. The cost of copper metal, a vital ingredient in Copper Sulphate production, has been volatile recently, impacting production expenses. Meanwhile, the prices have remained on the rise throughout the quarter on the back of rising production cost and ample demand from downstream industries.
