For the Quarter Ending March 2022
The first quarter of 2022 completed with the soaring market sentiments for the Magnesium Sulphate owing to increased feedstock Sulphuric Acid prices amid the extending hostilities. North America imports Magnesium Sulphate mainly from China. This rise in feedstock prices was mainly backed by the supply disruption and logistical issues, due to the restrictions applied by the Chinese authorities on the import-export activities to curb the spreading of COVID. This restriction caused congestion and port traffic, and higher freight charges. Thus, increased Chinese Magnesium Sulphate costs directly impacted the North American market. As a ripple effect, CFR prices of Magnesium Sulphate settled at USD390 per tonne during Q1 2022.
In Asia, Magnesium Sulphate showcased growth owing to the rise in the costs of feedstock Sulphuric Acid amidst the ongoing hostilities between Russia and Ukraine. The Chinese authorities' imposition of a strict COVID related policy in China two-folded the negative impact on the demand for Magnesium Sulphate. Due to this, major ports of China faced congestion issues while onloading and offloading, which created port traffic and soared the commodity prices. Moreover, the increased quotations for raw materials from the end-use fertilizer sector due to seasonal hype material have endowed this soaring. As a ripple effect, Magnesium Sulphate prices of FOB Qingdao (China) settled at USD 243 per tonne during the first quarter of 2022.
During the first quarter of 2022, Magnesium Sulphate market in Europe witnessed rise primarily due to extended conflict between Eastern European Nations. Also, the rising raw material Sulphur costs backed this lofty market sentiment toward Magnesium Sulphate. This escalating market dynamics of Sulphur levied a direct impact on demand outlook and added cost support on the quotations of European Magnesium Sulphate. Additionally, the imposed sanctions on Russia caused a shortage of vessels and higher freight costs and the reluctance from buyers to accept cargoes from the Russian ports. Prices of Magnesium Sulphate for CFR Rome (Italy) settled at USD 440 per tonne during March-end.
For the Quarter Ending December 2021
In the fourth quarter of 2021, the Magnesium Sulphate market in the North American region remained buoyed throughout the fourth quarter of 2021. This development in the market movement is majorly attributed to the rebound in the offers of Sulphuric Acid which layout adequate cost support in the production of Magnesium Sulphate. Whereas, supply capabilities enhanced after the production rates restored post-hurricane season in the US, and the demand outlook remained buoyed along with ample inquiries from the fertilizers and pharmaceutical sector. As a ripple effect, the offers for Magnesium Sulphate maintained to stagger upwards throughout the fourth quarter of 2021.
During the fourth quarter of 2021, the Magnesium Sulphate market witnessed a constant downward trend in the Asia Pacific region. This development in the market sentiments was induced by the easiness in the production margins and curtailments in the prices of freight vessels by 25%. In addition, the curb of the power rationing improved the operational rates in the facilities of the mining chemicals in the Chinese domestic market. Whereas, this development reduced the inquiries for Magnesium Sulphate from the Indian domestic market and narrowed the gap between supply-demand. As a ripple effect, the prices persistently dropped, and the Ex-Depot Mumbai discussions were settled at USD 171 per tonne, during the quarter ending in December.
The Magnesium Sulphate sentiments in the European market remained strengthened throughout the fourth quarter of 2021. This development is owed to the ongoing energy crisis that prevailed its impact from the last quarter which took a toll on the manufacturing rates in the European domestic market. In addition, the Sulphuric Acid prices rebounded proportionally with the Crude Oil and provided additional cost support. Whereas, some easiness was imposed by the drop in the offers for minerals. However, despite that, the offers for Magnesium Sulphate remained buoyed in the European domestic market.
The overall market of Magnesium Sulphate noted an upward trajectory in the 3rd quarter of 2021 across the North American region. Demand from the downstream agriculture industry remained bullish throughout the third quarter. Furthermore, increased consumption of Magnesium Sulphate in the personal care & cosmetics sector led to a spike in its prices during Q3. In terms of supply, it has remained healthy during this quarter while the tightness of raw material sulfuric acid affected the overall production of Magnesium Sulphate.
In the Asia Pacific region, the prices of Magnesium Sulphate witnessed a significant rise during Q3 2021 on the back of the increased demand from the downstream industries. In the Indian market, Magnesium Sulphate offers experienced a continuous surge following strong gains in upstream Sulphuric Acid pricing. Ex-location price was last assessed at USD 184 per MT during September. Strong offtakes from the downstream agricultural and pharmaceutical industry further supported the price rise. In China, raw material sulfuric acid stood high, and most smelters complained that power rationing restrictions hampered the local operating rates. Hence, the Chinese Magnesium Sulphate stocks were priced higher.
The Magnesium Sulphate market demonstrated an upward trend in the European region during the third quarter of 2021. Increase in upstream Sulphuric Acid prices that is widely used in its commercial production led to a surge in the offers of Magnesium Sulphate across the region. In terms of demand, strong offtakes from the agricultural industry were observed in Q3 which further led to a sturdy increment in Magnesium Sulphate prices.