For the Quarter Ending June 2023
North America
In the second quarter of 2023, Magnesium Acetate Tetrahydrate prices in the US market showed volatility in price developments. Overall, prices fell significantly, but the last months of Q2 2023 showed signs of easing market conditions due to sporadic fluctuations between supply and demand throughout the month. Market trading fundamentals were impacted by weak demand and high inventories. Retailers also struggled with the bloating of inventory they ordered to meet the surge in demand during the epidemic, despite stagnant demand. Energy costs have also fallen in recent months, reflecting a slowdown in the global economy, and falling oil prices have further supported the downtrend in Mg. Acetate Tetrahydrate. In late June, Mg. Acetate Tetrahydrate prices rose in the US market, mainly due to increased demand. Challenges such as rising interest rates, rising costs of living, and declining personal household savings will slow the economic upswing in the coming months. Weakness in foreign demand can be seen in various fields.
Asia
The Asia-Pacific magnesium acetate tetrahydrate market showed mixed trends in Q2 2023. The price as of the end of Q2 2023 was valued and corresponds to a quarterly average decline of 0.73%. A weak demand outlook and ample supply have pushed prices down at the beginning of the second quarter. There was also a strong increase in production rates to replenish inventories with fresh stock and meet future demand market conditions. Midway through the second quarter, the magnesium acetate tetrahydrate market experienced significant price increases due to increased domestic and international orders. China's exports continued to outperform domestic and foreign demand, and market conditions exceeded expectations. The supply of magnesium acetate tetrahydrate production is limited to some extent due to several factors, such as the production interruption in China and the ongoing war in Ukraine. This decrease in supply also contributes to price increases. Then, towards the end of the second quarter, the price fluctuated, with significant price declines. Due to large inventories of magnesium acetate tetrahydrate, suppliers had to reduce prices to reduce existing inventories. In addition, this price expansion was mainly due to a decrease in sales in the end-use field, and there were no new inquiries from domestic and overseas suppliers.
Europe
Overall demand for Magnesium Acetate Tetrahydrate declined in the second quarter of 2023, leading to lower market prices. Weak demand from the food and beverage industry, slowing demand from the oil and gas sector, and increased supply were some of the factors that kept the market down. German Mg. Acetate Tetrahydrate prices fell in April due to lower raw material imports from exporting countries such as China and chronically weak demand from downstream industries. In addition, tariffs between China and Europe have recently returned to pre-pandemic levels, and congestion has eased significantly, lowering sea freight costs, both of which are impacting the company's position. The availability of domestic supply and lower demand in domestic and international markets impacted commodity prices. Increased production capacity in India, the world's largest Mg. Acetate Tetrahydrate producers increased the supply of Magnesium Acetate Tetrahydrate. This has increased the supply of Magnesium Acetate Tetrahydrate in the global market. However, the slowdown in the global economy has reduced demand for Magnesium Acetate Tetrahydrate. Speculators are also selling Magnesium Acetate Tetrahydrate futures in anticipation of future price declines, which is also putting downward pressure on prices.
