For the Quarter Ending December 2022
During Q4 of 2022, Magnesium Powder values for both Magnesium Stearate and Magnesium Oxide decreased in the North American region. Magnesium Oxide prices decreased from $ 435/mt to $ 425/mt from October to December, while Magnesium Stearate prices dropped from $ 2650/mt to $ 2310/mt. The second month of Q4 saw a number of production facilities in China forced to shut down due to the heat wave and power outages, and several manufacturing facilities went under repair, which had a negative effect on US commerce for Magnesium Powder. A wide range of issues, including the long-term effects of high inflation, supply restrictions, high-interest rates, and increased uncertainty about the direction of the economy, were cited for the fall in demand by many US businesses and industries.
Magnesium Oxide (Food Grade) and Magnesium Stearate (FCC) FOB Shenzhen prices fell from $2025/mt and $1950/mt to $1780/mt and $1750/mt, respectively, from October to December in Q4 2022, according to the market trend of Magnesium Powder in the Asia Pacific region. A few of the causes that have influenced this price trend are low raw material costs, changes in consumer spending, and weak end-user sector demand. Due to the weak downstream demand and low offtakes in the first half, numerous suppliers only made orders for immediate usage. However, numerous chemical and bulk manufacturing plants conducted maintenance during the shutdown, influencing the supply of Magnesium Powder for domestic and foreign providers. This happened during the latter week of December. The market dynamics in China are significantly impacted by both extreme weather and power outages.
Pricing for Magnesium Powder in Germany decreased from October to December, pointing to a decline in prices for the final quarter of 2022. Germany's economic decline this quarter was exacerbated worse by logistical challenges brought on by prolonged port congestion and chronic transit delays. Due to China's continuing port restrictions and upheaval in Russia and Ukraine, the business climate in Europe has worsened. Demand from the end-user industry was low to stable throughout this period.
For the Quarter Ending September 2022
During Q3 of 2022, Magnesium Powder values for both Magnesium Stearate and Magnesium Oxide decreased in the North American region. Magnesium Oxide prices decreased from $457/mt to $420/mt from July to September, while Magnesium Stearate prices dropped from $3130/mt to $2830/mt. Due to the heat wave and power shortage, numerous production facilities in China were forced to close during H2 of Q3, and various manufacturing plants went under maintenance, which had a detrimental impact on US trade for Magnesium Powder. Many businesses and industries in the US blamed a variety of problems for the decline in demand, including the long-term effects of high inflation, supply constraints, high-interest rates, and increased uncertainty about the direction of the economy.
In the Asia Pacific region, the market trend of Magnesium Powder showcased a downward trajectory with Magnesium Oxide (Food Grade) and Magnesium Stearate (FCC) FOB Shenzhen prices falling from $2600/mt and $2595/mt to $1820/mt and $1890/mt from July to September, respectively, in Q3 2022. Low raw material costs, changes in consumer spending, and sluggish end-user sector demand are just a few of the factors that have influenced this price pattern. During the first half, several suppliers only placed orders for immediate use due to the weak offtakes and underwhelming downstream demand. However, after the shutdown, many manufacturing facilities underwent maintenance, which had an impact on the availability of the product for both domestic and foreign suppliers. This occurred in the final week of July. Extreme weather and power outages both have a severe impact on China's market dynamics.
Magnesium Powder prices in Germany witnessed a downward trend for the third quarter of 2022. Logistics issues spurred on by persistent transit delays and lengthy port congestion made Germany's economic downturn this quarter worse. The commercial climate in Europe has gotten worse as a result of China's ongoing port restrictions, as well as the unrest in Russia and Ukraine. End-user industry offtakes were low to constant throughout this quarter in terms of demand.