For the Quarter Ending June 2023
North America
The price of Magnesium Chloride remained bearish over the second quarter of 2023 and showcased a decrement of approximately (10.5%) during the entire Q2. At the beginning of Q2, Market analysts primarily ascribed this descending trend witnessed on account of sluggish queries from the associated businesses like the Textile and Construction industries. Furthermore, in the month of May, it added that the Magnesium Chloride market experienced the impact of the downturn in its price due to adequate supplies of product in the domestic ports, which kept the market oversupplied and due to the plentiful availability of the product in the region, despite low demand, Slump in purchasing activities of the material were observed as the demand recovery fell short of expectations. Overall demand of material showed a deep contraction and failed to regain momentum amid Weak demand from downstream Textile and paper industries. Furthermore, in the month of June, the market fundamental remained unchanged and continued to showcase the same declining trend, overall Magnesium Chloride FOB Texas remained at its lower end within the entire Q2 time period as attitude towards the demand is remained dubious, on the back disrupted market sentiments from the downstream country's Textile and construction industry.
APAC
In the Chinese market, the price of Magnesium chloride experienced a mixed trend during the second quarter of 2023. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. At the beginning of the quarter, the Magnesium chloride market witnessed a surge in price trend. The rise in demand from its downstream industries, such as Textile and Paper, put significant pressure on the supply of materials in the Chinese market. Suppliers experienced challenges to meet the increased demand due to low stock levels. Besides, providers continued to receive inquiries about the product with low records. Thus, to meet the growing demand, there has been a significant increase in trading activities for the commodity has been observed in both April and May. Moreover, market participants have shifted their focus towards acquiring substantial stocks to stockpile inventories further. Coming to the last month of Q2, the domestically traded price of Magnesium Chloride in the Chinese market assessed a declining price trajectory during this month. The demand outlook from the downstream Textile industries remained at its lower end in the wake of high base as companies claimed to already procure a substantial amount of the product in the previous month, leading to market saturation. In conclusion, overall, Magnesium Chloride FOB Shanghai experienced a drop of approximately (6%) during the entire Q2 time period.
Europe
The Magnesium Chloride market continuously follows a declining price trajectory throughout the second quarter of 2023. At the beginning of Q2, a generally skeptical market was created by falling trading activities. The extended weakness in the buyer appetite in the domestic market, as well as in the international market with sluggish end-user consumption in the key industry such as the Textile and insulation sector, prompted market participants to keep the prices on the weaker side to keep the prices economical. Furthermore, during the second last month of Q2, adequate supplies of products in the domestic ports kept the market oversupplied, and due to the plentiful availability of the product in the region, despite low demand amid feeble purchasing activities of the material with it Slump in the market value of Magnesium Chloride was observed. Additionally, economic uncertainty and recession fear continued to govern market sentiments. Thus, the price of Magnesium Chloride FOB Rotterdam drops to USD 432/MT in the last month of Q2, with an overall decrement of roughly (13%) during the entire Q2 time period.
For the Quarter Ending March 2023
North America
Overall price dynamics of Magnesium Chloride showcased mixed price dynamics due to fluctuating demand outlook for the product from fertilizer and personal care manufacturing units. The demand outlook inclined in the first half of the quarter as the demand for the product from the fertilizer sector remained on the upper edge. Moreover, the threatening economic recession and inclined energy prices contributed equally to inclining the prices of Magnesium Chloride. In the second half of the Magnesium Chloride market, dynamics shifted northward in the US market as demand for the product from downstream (fertilizer and construction) sectors was mild, influencing the total market dynamics of the product in the domestic market.
Asia-Pacific
The Asia-Pacific market witnessed mixed market dynamics of Magnesium Chloride in the first quarter of 2023 owing to the varying demand for the product from the fertilizer sector. The demand for magnesium chloride from fertilizer production facilities was influenced by the spring season. The Asian players are placing more emphasis on meeting domestic demand and have applied pressure on manufacturers to boost fertilizer production, which raised the demand for the product. However, the demand outlook for the product declined in the regional market on account of sufficient stockpile availability and a slow demand outlook for the product from end-use manufacturing units.
Europe
The overall market dynamics of Magnesium Chloride inclined in the regional market on account of inclined to import prices and strengthened demand outlook for the product from end-use manufacturing units. Moreover, in the first month of Q1, the demand for the product from the fertilizer and construction sector remained on the upper edge. The spring season, inclined importing and logistics charges, and a series of protests that occurred in the domestic market, impacted the overall market dynamics of Magnesium Chloride in the European market. Multiple unions (railways, laborers, etc.) went on a nationwide strike to protest-Pay equality and work conditions, which disrupted the supply chain in the Italian market.
During Q4 2022, the prices of Magnesium Chloride increased in the North American regional market, with quotations ranging at USD 580/ton FOB Texas in December within the United States of America. The low-priced supply of MgCl in the USA market was observed in the first month of the quarter affecting the market sentiments. Shifts in downstream demand, raw material purchasing, and variations in the US region's structural factors affected the market sentiments. The supply of imports from Israel and Germany increased due to escalating demand in the US domestic market and the plunge in the freight charges by the end of the quarter.
The prices of Magnesium Chloride rose from the beginning of the fourth quarter of 2022 to the middle of the quarter and remained stable till the end of the quarter in the Asian market, as per the ChemAnalyst Research team. The inventories were lowered in the first half, along with plummeting stock of Magnesium Chloride in the domestic market during the period. There has been a shift in the supply chain of Magnesium Chloride due to growing concerns about geopolitical tensions overall and pandemic-induced logistical disruptions in China curtailing the demand from downstream industries. According to our statistical data, the average quarterly costs were hovering at USD 124/MT Magnesium Chloride FOB Shanghai in the Chinese market.
In the European market, the prices of Magnesium Chloride followed the same trend as that of the Asian market during Q4 of 2022, with prices hovering at USD 510/ton Magnesium Chloride FOB Rotterdam in November 2022. The market lacked trade, and the supply and demand were engaged in a competitive game sourced by the traders owing to soft consumer sentiment in the European market. The market was dull in the early stage, continued with the early shortage, and triggered scarcity further observed along with long-term supply contracts paying a fixed rate for the assurance of reliable deliveries. In the later period, downstream consumption accelerated in response to a supply recovery and increased demand after distributors stockpiled on concerns about future availability.
