For the Quarter Ending June 2021
The supply outlook of the Magnesium Sulphate market in the North American region improved as ramped up operating rates eased the availability of Sulphuric Acid in the domestic market. Feedstock Magnesium Oxide market also rebounded as the production activities ramped up at several manufacturing facilities. Demand was exceptional as the enquiries observed a seasonal hype from the agrochemical sector along with the persistent offtakes from the pharmaceutical industries. As a ripple effect, Magnesium Sulphate prices in the North American region stabilized due to bullish offtakes from the downstream industries.
Magnesium Sulphate demand outlook in the Asia pacific region was exceptional amidst the seasonal uptick from the downstream agrochemicals industries. The enquiries were majorly concentrated over the Chinese and Indian domestic markets where offtakes were persistent from the fertilizer industries. However, due to the impact of the second COVID wave in India the import volumes were subdued in the first half of the quarter. Although the market rapidly rebounded in the second half as the government eased lockdown restrictions to fasten the economic revival. Proportional to the market movement, Magnesium Sulphate prices were recorded around USD 154 per tonne in June.
In the second quarter of 2021, the supplies of Magnesium Sulphate in the European region surged owing to ease in the availability of the feedstock Sulphuric acid. Furthermore, the operational rates improved at several Magnesium Sulphate plants in Germany due to rise in demand. Offtakes remained firm with the resurgence in the agrochemical industry amidst the seasonal push. As a ripple effect, the pricing trend stabilized in the European market comparatively to the previous quarter.
For the Quarter Ending March 2021
The North American region witnessed a severe plunge in Magnesium Sulphate supplies during Q1 2021, owing to the shortage of feedstock chemicals as the industrial production remained severely impacted due to the severe freeze weather in the USA Gulf region. Demand surged from the downstream sector especially from the fertilizers segment and offtakes were consistent from the pharmaceutical end-users. The widened supply demand gap hiked the prices of Magnesium Sulphate and forced the domestic buyers to be more flexible towards the overseas supplies.
The Asia Pacific Magnesium sulphate market remained largely impacted with constrained supplies during the first quarter of 2021, with flat inventory levels reported in the first half of the quarter and curtailed enquiries from the downstream markets. The overall price trend remained upwards as a repercussion of hiked prices of the key commodities throughout the quarter. Demand witnessed a hike later on with strong offtakes from the agrochemicals and fertilizers segment, whereas offtakes from the pharmaceuticals sector were stable. Seasonal surge in the Indian demand raised Magnesium Sulphate prices in March to USD 148 per tonne.
During the first quarter of 2021, the European Magnesium Sulphate market was sluggish with tight supplies owing to the limited availability of Sulphuric Acid as the regional run rates were restricted amid the transportation lag followed by the reduced imports from the USA. Demand from the agrochemical sector in the European region were mainly driven by the export market, further offtakes were improved from the pharmaceuticals sector.
For the Quarter Ending December 2020
Amidst continuous demand of Magnesium Sulphate from healthcare sector as additive, a significant surge in its prices was observed in Southeast Asia in quarter ending December 2020.In rabi season which lasts from October to March, the demand of magnesium sulphate usually increases due to increase in demand from fertilizer industry. All these factors indicate that in upcoming years Magnesium Sulphate will have a very strong market in Asia pacific region which will not be easy to replace. The CFR JPT of Magnesium Sulphate in last quarter averaged at USD 135.35 per MT for Q4 FY2020.
Market sentiments for Magnesium Sulphate remained mixed for the quarter ending September due to its excessive inventory piles in the regional market. Traders reported that there were limited contract purchases as buyers have already stockpiled cargoes under fears of another lockdown which might hinder the agricultural industry in the short term. In line, with limited market activities, its prices did not witness a major fluctuation during the period. As people are shifting towards organic farming due to its environment and health benefits, in the coming years the demand and prices of Magnesium Sulphate are expected to be increased.
According to United Nations Food and Agriculture Organization (FAO) the demand of organic food in north America has increased two folds by the quarter ending December due to corona pandemic. Consequently, its prices were also positively affected by the soaring demand in the final quarter. As the population is increasing continuously along with food demand, it has forced the government to look for more natural ways to increase the yield, thus shifting their focus more on Magnesium Sulphate to increase yield without causing any harm.