For the Quarter Ending March 2023
North America
In the US market, the prices of Magnesium Sulphate have demonstrated mixed market sentiments. The downshift observed in the manufacturer’s quotations amid weak demand fundamentals has contributed to the price decline of Magnesium Sulphate in the domestic region at the start of the first quarter. The freight charges were also relatively low, and upstream Sulphuric Acid costs were on the lower end. Furthermore, the expensive imports coming from China and Europe have led to an increment in the market value of Magnesium Sulphate. The tight labor markets have further intensified the inflationary pressures in the domestic region, and the Magnesium Sulphate market has operated at upper levels. Thus, Magnesium Sulphate CFR USGC prices were assessed at USD 470 per ton in March.
APAC
A drop in procurement from the downstream agricultural industries has led to bearish market sentiments for Magnesium Sulphate in early Q1. The reduction in upstream Sulphuric Acid costs and overflowing inventories in the domestic region have weakened the market sentiments. Thus, to encourage market shipment and maintenance of market balance, the manufacturers have opted for price adjustments. In addition, after the spring festival holidays, manufacturing activities have been boosted in China. Furthermore, The increment in upstream Magnesium Oxide and Sulphuric Acid costs has been responsible for the upshift observed in the price realizations of Magnesium Sulphate in March. Although the trading atmosphere from downstream agrochemical firms was mild, with tight supplies, the Magnesium Sulphate market has sorted at upper levels. Consequently, Magnesium Sulphate FOB Qingdao prices were settled at USD 123 per ton at Q1-end.
Europe
The prices of Magnesium Sulphate have demonstrated a volatile price trend in the German market. The fall in consumption from the downstream agrochemical industries has prompted the manufacturers to slash their offers to generate sales. In addition, the declining costs of upstream Sulphuric Acid and TTF natural gas costs have also impacted the production costs of Magnesium Sulphate in the European market. Furthermore, in order to sustain their profit margins, the manufacturers have raised their offers. The continued inflationary pressures, tight monetary conditions, and shortage of skilled workforce have led to bullish market sentiments. The ChemAnalyst database has shown that Magnesium Sulphate FOB Hamburg prices were settled at USD 420 per ton at the end of the first quarter.
For the Quarter Ending December 2022
North America
The prices of Magnesium Sulphate have retained their upward momentum throughout the fourth quarter of 2022. The inflow of high-priced goods from the exporting countries has resulted in the market rise of Magnesium Sulphate in the domestic region. In addition, the inflationary pressures have also curbed manufacturing activities in the US market. On the demand side, the inquiries from the downstream fertilizer market were relatively low as the off-season effect was prominent. Furthermore, the prices of natural gas have also remained volatile, and the Federal Reserve's aggressive interest rate increases to tame inflation have weighed on the economy. Magnesium Sulphate CFR USGC prices were observed to have hovered around USD 380 per ton at the end of the fourth quarter of 2022.
APAC
The prices of Magnesium Sulphate first fell and then stabilized in the Chinese domestic market. The strong inflationary pressures and uncertain economic conditions have resulted in a fall in procurement from the European and US market. The exports have also remained at the lower end, leading to a plunge in manufacturers' quotations. On the upstream cost front, Sulphuric Acid costs have consistently dropped throughout the fourth quarter of 2022. Furthermore, the COVID restrictions were imposed in mid-Q4 and pressured the trade activities for major bulk chemicals, including Magnesium Sulphate. However, the supply chain remained unaffected since the factories operated at a regular rate, even though the consumption levels remained subdued amid lockdowns. As a result, Magnesium Sulphate FOB Qingdao prices were settled at USD 123 per ton in December.
Europe
Throughout the fourth quarter of 2022, the prices of Magnesium Sulphate have demonstrated bullish market sentiments. Soaring natural gas and electricity prices have forced the manufacturers to cut production as they were unable to pass on the price hike to the end-use industries. Natural gas is used extensively in the production of downstream fertilizers, and in Europe, operations have become unprofitable due to high prices. As a result, the procurement of Magnesium Sulphate has remained weak. Furthermore, inflation was also at a record high and exceeded 10%, and the purchasing power diminished. The ChemAnalyst database has shown that Magnesium Sulphate FOB Hamburg was assessed at USD 345 per ton at Q4-end.
The price offers of Magnesium Sulphate have demonstrated mixed sentiments throughout the third quarter of 2022. The subdued demand from the downstream agriculture sector and the reduction in freight charges have worsened the price dynamics of Magnesium Sulphate in the U.S. market. The upstream Sulphuric Acid prices have consistently dropped till August. As per the market players, the elevated inventory levels backed by the slower-than-expected demand outlook from the downstream agriculture sector impeded the supply-demand fundamentals of Magnesium Sulphate in Q3. In addition, the strong U.S. dollar has pushed traders to procure the product at lessened prices. However, the upstream Sulphuric Acid prices improved in September and provided cost support to the price realizations of Magnesium Sulphate in the market. Prices of Magnesium Sulphate CFR USGC were assessed at USD 335 per tonne at Q3-end.
A significant decrement in new orders from importing countries and plummeting upstream raw material costs have pushed the Magnesium Sulphate prices on a bearish run in the Chinese market. The prices of upstream Sulphuric Acid have constantly declined throughout the third quarter of 2022, easing cost pressure on Magnesium Sulphate. China's trade deficit has elevated, and its export markets have been curtailed due to consistent economic downturns. In September, the domestic manufacturing units in China had to suspend or reduce production to reduce the risks amid the volatility in input material costs and power rationing. The high temperature and power shortages have impacted the production capacities of many chemicals, including Magnesium Sulphate. The Magnesium Sulphate FOB Qingdao prices were concluded at USD 140 per tonne at quarter-end.
In Germany, the Magnesium Sulphate prices first fell at the start of the third quarter and then significantly escalated till the Q3-end. The energy crisis has led to the closure of many European manufacturing facilities. The war in Ukraine has hampered the input materials shipments for Magnesium Sulphate production in the domestic region. The market players have reported that the reconfiguration of the energy value chain and the overloaded ports with cargo has created an imbalance in the trade outlook. Furthermore, the rapid interest rate increases by the U.S. Federal Reserve to combat inflation have slid the euro's value against the dollar and widened the trade deficit with overseas countries. Therefore, Magnesium Sulphate FOB Hamburg averaged USD 268 per tonne in September.
