For the Quarter Ending March 2024
North America
Throughout Q1 2024, the Magnesium Powder market in the North American region experienced significant price changes. The prices of Magnesium Powder in the USA saw the maximum fluctuations during this period. Several factors influenced market prices, including increased demand from the downstream sector, limited inventory availability, and higher freight costs. The Lunar New Year break in exporting nations also impacted trade momentum, causing delays in the arrival of consignments and higher freight charges. Additionally, the prices of feedstock such as magnesium and stearic acid played a role in the overall price increase for Magnesium Stearate and oxide considerably.
Overall, the market sentiment was positive, with a sustained and noticeable uptick in demand for both the grades of Magnesium Powder. Additionally, the reliance on imports from China and fluctuations in Chinese provinces affected the domestic market. Various plant shutdowns also played a role in price dynamics, as production halts in Chinese provinces during the Lunar New Year celebrations resulted in constrained shipments and limited inventories in the US market. This led to market players adjusting quotations to protect profit margins and selling available stockpiles at higher rates.
Looking at the price trends, Magnesium Oxide Powder saw a slight drop in prices in March. The price changes in the USA were in line with weakened purchasing witnessed across the region resulting in sufficient inventories witnessed among the market participants. This was further a result of quarter-end destocking, resulting in the merchants clearing their inventories at a lower cost.
Asia Pacific
In Q1 2024, the pricing dynamics of Magnesium Powder for both the grades including Stearate and Oxide witnessed a mixed trajectory in the APAC region. Considering the market trend for Magnesium Stearate the overall market remained on the optimistic side with prices rising by an average of nearly 7 percent. The market dynamics heavily influenced Magnesium Stearate pricing in Q1 2024. High demand, limited supply due to bottlenecks, and disruptions in raw material flow like Stearic Acid pushed prices up. The weakening Chinese Yuan against the US dollar worsened the situation. Post-holiday, regional and international inquiries remained high, allowing suppliers to raise prices strategically for maximum profit. Initially, trade disruptions raised freight costs, but as March progressed, increased quotations, a stronger dollar, and decreased freight expenses boosted import quotations. Gradually decreasing freight charges from China also facilitated transportation. on the contrary, the market outlook for Magnesium Oxide additionally followed a similar trajectory with prices dropping considerably at the beginning of the quarter which weighed the overall market outlook. This was supported by the sudden decrease in regional quotations coupled with more than sufficient inventories among the merchants stockpiled in the previous quarter of the last year. Further higher reluctance among the traders and buyers to procure the goods at a higher cost as the yuan continued to depreciate against the dollar which made the overall regional product more expensive in the market, keeping the market moving on the southern side. Overall, pricing dynamics in Q1 2024 for Magnesium powder were influenced by demand-supply dynamics, currency fluctuations, and supply chain disruptions, illustrating market complexity.
Europe
In the European region, Magnesium Powder prices followed those in the USA in Q1 2024. Optimism prevailed due to sustained demand from domestic pharmaceutical and food sectors despite global supply chain disruptions, especially in the Red Sea region. These disruptions caused delays and extended lead times, worsening shortages and pushing prices up. Germany closely monitored the pricing trends of major exporting nations, facing complications from currency fluctuations, particularly the Euro's depreciation against the dollar. Despite rising freight charges, traders and purchasers had to accept goods at higher costs due to increased expenses for imported materials in USD. Additionally, the price escalation of raw materials, Stearic acid, and magnesium, complemented the price hike of Magnesium Powder for both grades throughout the quarter. Towards the quarter's end in March 2024, destocking activities added to the influencing factors. As the Euro devalued against the dollar and regional inquiries remained steady, merchants cleared stocks at higher costs to maximize profits. The resumption of production activities in exporting countries after holiday breaks and easing trade disruptions bolstered market resilience across importing nations, fostering an optimistic outlook for magnesium Stearte while a steady drop was witnessed in the prices of magnesium oxide as the quarter marks its ending in March 2024. This was supported by a drop in regional quotations particularly from downstream food and supplement industries. Furthermore to devaluation of the euro against the dollar further kept the overall trading sentiments on the lower side as buyers were highly reluctant to purchase the goods at given higher rates.
South America
During Q1 2024, Magnesium Powder prices in the South America region, notably Brazil, showed a positive trend in 2024. This price hike is a direct result of strategic maneuvers by key industry players who have initiated substantial orders to meet the growing demand and bolster increased purchasing activities. A significant driver behind this price escalation is the surge in raw material expenses including other input charges, particularly for magnesium, in major regions where it is produced and exported. Brazil further, has mirrored the pricing trends of other exporting regions to remain competitive amidst evolving market dynamics. Adding complexity to this scenario are geopolitical tensions and trade interruptions, which have further compounded market sentiments. Export challenges, such as the redirection of shipping routes via the Cape of Good Hope to avoid the Red Sea, have triggered a chain reaction of consequences. These include heightened shipping costs, order cancellations, and delays in container movement which considerably resulted in a higher export price from Brazil to importing nations. Furthermore, Western and Northern regions, including Europe, also experienced a continuous rise in downstream consumption thereby resulting in a higher trade momentum further supporting the overall optimistic market trajectory throughout the quarter.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 proved to be a significant period for the Magnesium Powder market in North America, particularly in the USA. Several key factors influenced the market and pricing trends during this period. Firstly, the market experienced a mixed demand for both Magnesium Oxide and Stearate within the downstream pharmaceuticals, food, and other industrial sectors showing an upside-down pricing trajectory.
As October 2023 commenced the prices for Magnesium oxide went down across the region while at the same time, the values of Magnesium Stearate witnessed a modest rise from the previous month. Different upstream dynamics and shifting end-user consumption were blamed for the price movement. The price of magnesium oxide fell in step with the decline in magnesium prices Whereas the spread between downstream magnesium stearate and downstream stearic acid widened. Due to the necessity of using up existing inventory before replenishing it, suppliers and traders in October did not focus on further restocking activity for Magnesium Oxide, hence supporting its weakened price trajectory during the month.
Moving into mid-November 2023, both Magnesium Oxide and Stearate prices experienced a significant surge. The US pharmaceutical industry, resilient during this period, drove increased demand for essential medication ingredients, including Magnesium Stearate. The holiday season typically prompts higher consumer spending on personal care and healthcare products, further boosting this demand. Trade tensions with major suppliers, notably China, potentially limited import options, resulting in higher domestic prices. Congestion at certain US ports caused delivery delays, increasing shipping costs passed on to consumers, exacerbated by a shortage of shipping containers. Market analysts expected sustained growth in the Magnesium Stearate market across various industries, including healthcare, cosmetics, and food processing. As we progressed into December 2023, Magnesium Oxide prices continued to rise, indicating ongoing increased downstream consumption. However, demand for Magnesium Stearate in the food and preservative sectors slightly diminished, maintaining a balanced supply and demand within the region.
APAC
Throughout the fourth quarter of 2023, the APAC region experienced varied market conditions for Magnesium Powder. The market was influenced by several factors. Firstly, demand from the downstream industries remained mixed, with inquiries decreasing at a steady rate for Magnesium Oxide in both the feed and food sectors, while offtakes for Magnesium Stearate were on the upper end. As of October 2023, the availability of Magnesium Powder inventories in the market remained sufficient to cater to inquiries, with stock levels being balanced. Additionally, the overall economic landscape in the region exhibited a nuanced picture, combining areas of weakness with encouraging signs of resilience and adaptation. While moving into November, the FOB prices for all grades of Magnesium Powder experienced an upward trend within the Chinese market. Several factors played a role in this price surge, including heightened demand for both grades from end-user sectors. Additionally, manufacturers of the raw material, Magnesium, operated at reduced volumes, leading to limited inventory and constrained supply, thereby resulting in higher prices for both upstream and downstream goods. Moreover, as the winter season approached, businesses strategically prioritized replenishing their inventories by placing substantial orders to strengthen the market. Downstream panel factories were actively involved in procurement activities, responding to incoming inquiries, which created an environment of intensified bidding and competitive offers among enterprises. The strategic bulk ordering by market participants and increased demand from the feed and other preservative industries further contributed to the price surge which continued until the final weeks of December 2023.
Europe
The fourth quarter of 2023 was characterized by witnessing an ominous market outlook for Magnesium Powder across the European region with prices following the market trajectory of exporting regions primarily China with a modest drop in early Q4 i.e., October 2023. As October commenced the demand from downstream industries typically saw a rise in preservatives sectors for certain goods including Magnesium Stearate while that of Magnesium Oxide somewhere remained low balanced by sufficient inventory levels possessed by market experts. Additionally, the relative strengthening of the Euro against certain currencies, particularly the US dollar, made imports cheaper for some countries, impacting the price of Magnesium Powder in their domestic markets. Moreover, as we approached November 2023, the demand for Magnesium Stearate continued to remain on the upper side while witnessing a rebound in Magnesium Oxide purchasing activity. However, as per the market experts, the domestic suppliers and traders had strategically enough accumulated stocks with respect to arrived demand from their respective end-user sectors. This trend continued to follow even in the month of December 2023. Moreover, the increasing global shipping expenses, coupled with recent instances of ship attacks near the Suez Canal and ongoing congestion in the Panama Canal, have introduced complications to the global supply chain. As vital trade routes encounter difficulties, transportation and shipment procedures become more cumbersome, intensifying pre-existing logistical challenges and consequently shaping the overall market trajectory, thus affecting the costs of imported goods.
South America
In Q4 2023 (October to December), the South American region observed an upward pricing trend for Magnesium Powder (Magnesium Oxide). Purchasing sentiments weakened at the beginning of the quarter but rebounded significantly in November, continuing on an optimistic trajectory until the quarter's end. During October, the exporting prices of Magnesium Oxide Powder from Brazil significantly decreased compared to the previous month. This decline was supported by weakened demand from end-user sectors. Brazil's Manufacturing PMI also declined for the second consecutive month, from 49 in September 2023 to 48.6 in October 2023, indicating a more severe downturn in the country's factory activity. The difficult economic climate, reduced demand, and declining exports led to decreases in new orders and business activity. Buying activity decreased, inventories were sufficient, and market players focused on domestic market inquiries and transactions. However, as November 2023 unfolded, merchants observed a moderate rise in downstream demand for Magnesium Powder in the region. This was driven by increased interest from both domestic and overseas buyers, particularly from the United States. Additionally, the Brazilian market stood out with significant price increases, fueled by a sharp rise in regional inquiries and heightened interest from overseas importing countries. The quarter saw a slight rebound in demand, with Brazil's market activity showing signs of improvement. Consumer prices in Latin America's largest economy rose by 0.56 percent month-over-month in December, according to the IBGE national statistics agency, with inflation remaining relatively in check. Further, according to market analysts, at the end of Q4 2023, inventory replenishment activities with fresh stock kept the market on the positive side based on overall demand.
For the Quarter Ending September 2023
North America
Yet again, the market performance of Magnesium Powder in the third quarter of 2023 followed a varied path. Magnesium Oxide prices experienced a general decline, with a slight increase noted in September 2023. In contrast, Magnesium Stearate exhibited an overall positive outlook but ended September 2023 on a pessimistic note. Looking at Magnesium Oxide, demand from the regional market stayed low until mid-Q3, with a slight improvement seen in September 2023. Conversely, the Upstream market saw consistent price hikes for Magnesium Chloride until the end of Q3, despite excess feedstock availability among merchants and industrialists. Regarding Magnesium Stearate, off-takes in pharmaceuticals, cosmetics, and other industrial sectors increased compared to the previous quarter. Large firms' inventory restocking efforts slowed down the rate of inventory reduction. In August, market participants had surplus inventory, prompting merchants to lower domestic selling prices to clear their stock. However, in September 2023, prices gradually improved due to increased production in upstream factories, maintaining a strong market operating rate throughout the last month of the third quarter. Factories were keen to raise prices, maintaining an optimistic market trajectory for Magnesium Oxide. As for Magnesium Stearate, supplies remained ample in line with the overall demand within the region.
Asia Pacific
Throughout Q3 in the APAC region, both Magnesian Oxide and Magnesium Stearate exhibited a consistent downward trend. The market dynamics for Magnesium Oxide varied across grades, with bearish consumption in feed industries persisting until mid-Q3 and showing improvement towards the end of the quarter. In the food industry, the price of food-grade Magnesium Oxide (MO) slightly improved compared to the previous month. Market participants found themselves with significant inventory levels for both MO grades, which could meet the overall demand effectively. Furthermore, the prices of upstream Magnesium Chloride remained consistently high throughout the quarter, leading to opposite market sentiments for both downstream and upstream sectors. On the other hand, Stearic Acid prices began Q3 positively but experienced a modest dip in August. However, this dip did not impact the supply-demand balance of Magnesium Stearate, as merchants managed to sell their products at higher prices and fulfil overseas inquiries. Moving into September, both grades of Magnesium Powder experienced a volatile market situation. The month began with uncertainty in downstream industry demand, coupled with surplus stock availability for certain grades, leading to a widened demand-supply gap and creating a varied market scenario. Additionally, input costs surged at the fastest pace since January, driven by increasing prices of chemicals, crude oil, and industrial metals. Chinese policymakers faced the challenge of revitalizing stalled economic growth, with analysts suggesting more aggressive measures in addition to the incremental support provided in recent months.
Europe
Across the European region, Magnesium Powder mimicked the market trend as that of United States throughout third quarter of 2023. Reduction in sales within the domestic market attributed to a weaker price trajectory for Magnesium Oxide in third quarter of 2023. While the traders continued to place their orders for Magnesium Stearate as their consumption in pharmaceutical and food industries continues to rise. Furthermore, the depreciation of euro against the US dollar until September was one factor that supported the upsurged prices of Magnesium Stearate across the European region. As a result of this depreciation the import prices continued to remain on the north side. Beside this, considering the economic conditions in European region primarily in Germany until the mid Q3, the the consumer price index (CPI) in Germany in August 2023 was 6.1%. This is a slight decrease from the 6.2% inflation rate in July 2023. While the cost of energy and fuel rose considerably keeping the trading cost on the higher side in August. Meanwhile, the inventory levels among the merchants in for both Magnesium Stearate and Oxide were sufficient in the warehouse that kept the market dynamics somewhat balanced.
For the Quarter Ending June 2023
North America
The values of Magnesium Powder illustrated an opposing pricing trend for both grades, Magnesian Oxide and Magnesium Stearate, during the whole second quarter of 2023 across the US market. Considering the magnesium oxide, the prices continued to sustain its upward market trend until April and dropped significantly in May and June. Factors such as fluctuating upstream Magnesium cost and varying demand from downstream food, pharmaceutical, cosmetic, rubber, and other sector kept the market trend unstable during April. Moving forward towards the middle of Q2, the prices of Magnesium Oxide went down considerably owing to weaker consumption in the pharmaceutical, cosmetic, and rubber industries. Furthermore, the upstream magnesium market additionally supported the weakened market sentiments for Magnesium oxide until the end of June 2023. However, with respect to magnesium Stearate, its prices continued to remain on the south side until the month of May. This was supported by no significant changes in downstream sector demand and a continuously weakened upstream stearic acid cost. While as the second quarter ended in June, the prices of Magnesium Stearate witnessed a sign of improvement, with demand surging at a moderate level which was balanced with overall stockpiles among the local suppliers and retailers. However, the spread chart between the upstream stearic acid and downstream Magnesium Stearate was widened, demonstrating a negative trend for Stearic and vice versa for Magnesium Stearate throughout June.
Asia Pacific
During Q2 2023, Magnesium powder prices for Magnesium oxide and Magnesium stearate varied across the APAC region, mainly in China. The pricing trend of Magnesium oxide, including feed grade and food grade, showed a disjoint pattern of market trends. For feed grade, prices increased steadily during the first months of Q2, whereas they diminished significantly in the subsequent months due to a higher accumulation of inventories and weakening demand from the feed sector. For food grade, prices showed a positive trend until the middle of Q2, supported by increased downstream demand, equally supported by insufficient inventories. Manufacturers also increased their manufacturing activities in response to a steady increase in domestic demand and anticipation of increased international inquiries. But, with the start of June, Food grade prices decreased significantly due to a sharp decrease in inquiries. This impacted the overall market sentiments of Magnesium Oxide as suppliers were concerned about their accumulated stocks. Also, the trading activity of magnesium oxide remained affected throughout the second quarter because of different demand-supply activity. Also, China's manufacturing sector contracted for the third straight month in June. The official purchasing managers' index (PMI) came in at 49.0, a slight improvement in May but still below the 50-point mark that separates expansion from contraction. On the contrary, concerning the market trend of Magnesium Stearate, the prices went down throughout the second quarter of 2023. Weaker upstream Stearic Acid cost further supported this downward trend of Magnesium Stearate across the APAC region. Overall, the price trajectory for Magnesium Stearate across the Chinese market showcased an average decrement of 6 percent during the Q2 of 2023.
Europe
Across the European region, Magnesium Powder mimicked the market trend as that of North American region during the whole second quarter. Magnesium oxide prices surged until the first half of the second quarter with consistent surge in domestic inquires. The purchasing activity however continued to remain on the upper side owing to which, traders focused on raising their quotations. Moreover, moving towards the middle of Q2 the prices started to drop significantly across the domestic market leading to higher accumulated inventories. Apart from that, Germany's Consumer Price Index (CPI) decreased to 116.50 points in May from 116.60 points in April of 2023, showing a decline in domestic consumption rates. While the prices of Magnesium Stearate continued to drop throughout the second quarter. In addition, given the Germany's economic situation, there were no additional inquiries for both grades were witnessed across the country as players were not able to see a positive arbitrage window. Also, upstream Stearic Acid continued to depict a weaker pricing trajectory throughout the second quarter of 2023 which further supported the downward market trend for Magnesium Stearate in Europe.
For the Quarter Ending March 2023
North America
The price of Magnesium Powder demonstrates a mixed market trend for Magnesium Oxide hearse, a decremented trajectory for Magnesium Stearate throughout the first quarter of 2023. However, prices inclined in January due to healthy domestic demand with limited stocks among the market participants. Besides this, consumer demand showed a weaker trend even if the market trend remained on the upper side as February approached, which caused local suppliers and traders to concentrate on placing orders in line with necessities. Also, the decrease in upstream Stearic Acid and oleic acid prices further supported the declining market trend for Magnesium Stearate until the end of the first quarter of 2023. However, improvement in trade activity somewhat supported the positive price trend in the market for Magnesium oxide until the very end of March. Overall, the cost of Magnesium Powder in the United States during the month of March was constructed at USD 440/MT for Magnesium Oxide and USD 2140/MT for Magnesium Stearate.
Asia Pacific
The first quarter of 2023 saw a mixed market trend for Magnesium Oxide, while the prices for Magnesium Stearate went down until the end of March 2023. The mood in the Chinese markets began to improve slightly at the beginning of January. After the Lunar New Year, when the government abandoned its zero-COVID policy, both consumption and production significantly increased. This was primarily because of better demand. In contrast, prices for Magnesium Oxide began to decline steadily as February 2023 got underway. Likewise, as February approaches, the prices of Magnesium Stearate started to decrease and continue to end this quarter on a bearish note. This was made possible by a significant decrease in imports owing to a decline in upstream cost as well as a decline in both domestic demands from downstream industries and international inquiries. Overall, the price of Magnesium Oxide was settled at USD 1970/MT in China, with a sturdy market trend in the month of March, while the prices of Magnesium Stearate were assembled at USD 1730/MT.
Europe
Throughout the first quarter of 2023, the price of Magnesium Oxide shows a mixed market trend and a declining trajectory for Magnesium Stearate. Prices did, however, climb in January as a result of strong domestic demand and low stock levels among market players. Additionally, through the end of the first quarter of 2023, the fall in upstream stearic acid and oleic acid prices reinforced the downward market trend for magnesium stearate. In addition, as February drew nearer, consumer demand exhibited a lower trend even if the market trend remained positive. As a result, local suppliers and dealers concentrated on making orders in line with their needs. However, a little uptick in trade activity helped to sustain the upward price trend for Magnesium Oxide in March.
For the Quarter Ending December 2022
North America
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.
APAC
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.
Europe
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
North America
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.
APAC
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.
Europe
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.
