For the Quarter Ending June 2021
Registering recovery from winter storm in February, agrochemical sector of USA adhered prominent demand in the latter half of April. Demand for Copper Sulphate rapidly increased amid supply shortage, taking momentum from improvement in farming activities in the country. Meanwhile, the demand for Copper Sulphate rose rapidly in the global market, supported by the steep rise in demand from agriculture sector. A major manufacturer, DuPont announced price hike by around 10% in May, due to the steep rise in demand amid lower inventory level due to halted production activities after February.
Asian countries experienced a fair spike in prices of Copper Sulphate, backed by sturdy demand fundamentals amidst shortage of feedstock. In India, a huge spike in prices of Copper Sulphate was observed during this quarter, supported by firm demand from domestic fungicides sector and global rise in price of its feedstock Copper Sulphite ores. While in China, a substantial rise in prices of metallic copper was observed, backed by huge demand from domestic market. The increment in feedstock prices, increased the production cost of Copper Sulphate across the region. Therefore, after gaining a decent value within the quarter, prices of Copper Sulphate reached USD 2950/MT in June for India.
Global rise in prices of Copper Sulphate during Q2 2021 due to the firm demand from the fungicides segment influenced the market fundamentals of the products in the European market. Despite of the fact that mining activities improved in comparison to last year, prices of copper ore rose in effect of rise in metallic Copper demand. In addition, logistical issues and rising production cost also affected the prices of Copper Sulphate across the region during this quarter.
For the Quarter Ending March 2021
Demand for Copper Sulphate from domestic agriculture sector remained low due to unfavourable weather conditions. During February, all the farming activities followed by industrial activities snoozed under freezing winter, hence the regional demand plummeted during this timeframe. However, the demand from Europe remained strong but inadequate production weighed down the export potential of North American region. Some traders seemed reluctant to offer stocks at discounts due to market uncertainties still hovering over the industry.
Asian market showed strong sentiments for Copper Sulphate prices and demand, during Q1 2021. As Copper Sulphate widely used in making fungicides and microbial repellent, the strong demand was backed by the crop season Zaid during March. Sturdy demand resulted pushed up the prices from USD 1728/MT to USD 1742/MT in January-March timeframe in Indian market. In addition, Sagardeep Alloys commenced their trial operations to produce Copper Sulphate in India, which is expected to assist in improving the regional supply crisis in the long term.
Europe observed firm regional demand for Copper Sulphate from domestic pharma sector during this quarter. In addition, demand was also driven by the arrival of spring season. Traders remained optimistic about the good demand from domestic agriculture sector as well. However, supply activity remained halted due to lower mining activity after rapid surge in COVID 19 cases across the region. In addition, due to high freight cost and container shortages, traders restrained to import additional cargoes from Asia which considerably affected the domestic availability of Copper Sulphate.
For the Quarter Ending December 2020
Growing demand for copper sulphate and its salts in various economies especially from the agriculture and pharmaceutical sector propped up the copper sulphate offers in Q4. Uncertainty stemming from some consuming sectors kept the prices relatively pressured over Q4 2019. Rising price of cupric oxide and sulphuric acid also supported the price curve. With growing focus of major economies on agriculture and pharmaceutical industry, the demand of the product gained back the lost trend. To cater to growing product demand, a leading Indian producer was heard planning to expand its production capacity of Copper Sulphate in October. The price of copper sulphate was averaged around USD 1768 per MT in the Indian market.
Supply remained affected due to curtailed operations at some mines or normal production levels which had been pushed back due to operational restrictions amid surging COVID-19 cases. Increasing demand for Copper Sulphate from the pharmaceutical and agriculture sector contributed well to the product’s demand outlook during the quarter while the demand from the construction sector remained tepid. Rising demand from the pharmaceutical and agriculture industry and lack of overseas shipments kept the offers risen throughout December.
High prices of copper oxide and sulfuric acid and tight regional supply kept the Copper Sulphate prices high towards the end of the quarter. The supply of copper oxide and sulfuric acid was lower initially in the quarter due to dampened demand. A significant shift in the consumer behavior after the pandemic has given a boost to the regional CuSO4 demand from the healthcare sector. Active restocking by the agriculture sector further supported the price and demand curve.