For the Quarter Ending September 2023
North America
The Magnesium Sulphate prices showcased oscillated movement, and prices rose by almost 12% during the Q3 of 2023. At the beginning of the quarter, prices increased due to increased consumption of Magnesium Fertiliser from the Horticulture sector to improve cultivation rates amid the rise in global food inflation and reduced import rates of Russian fertilizers. During the mid-quarter, prices declined marginally amid a reduction in production costs in the exporting region. Meanwhile, the hike in bank interest rates by the Federal Reserve Bank to cool down the rising inflation resulted in a decline in demand from buyers, causing a slowdown in the economic growth of the region. The demand for fertilizers remained moderate in the Horticulture sector. Then, towards the end of Q3, the production rates were limited due to the increased feedstock Magnesium Powder prices amid increased inquiries and stressed availability of supplies. Exporters raised their quotations amid an escalation in demand from regional buyers due to an increase in crop cultivation activities. Meanwhile, demand remained moderate from the Pharma sector during the period. Conclusively, at the end of Q3 of 2023, Magnesium Sulphate prices in the USA witnessed USD 462/MT.
Asia
The Magnesium Sulphate prices showcased mixed sentiments in Asia during t the 3rd quarter of 2023. At the beginning of the quarter, prices rose amid high demand from global buyers amid the rise in global food inflation and the increase in consumption rates in the Horticulture sector. The El Nino effects impacted the rain patterns during the monsoon season. Consequently, demand-supply dynamics remained moderate amid storms and typhoons like Doksuri Saola and heavy rainfall in the region. During the H2 of the quarter, prices surged again as suppliers tightened their supply rates amid moderate production rates due to stressed availability of feedstock Magnesium Powder inquiries. Simultaneously, demand surged from fertilizer manufacturers due to the escalation in procurement activities for the Autumn season application. Simultaneously, stocking activities increased towards the end of Q3 due to before the Golden Week Holidays in key regional exporter China. At the end of Q3, 2023, Magnesium Sulphate discussions in South Korea and Indonesia were USD 119/MT and 130/MT, respectively.
Europe
The Magnesium Sulphate prices shifted movement in Europe during the Q3 of 2023. Initially, prices rose due to reduced import rates of Russian fertilisers and increased consumption from the Horticulture sector to improve cultivation rates amid the rise in global food inflation and dry weather conditions in the region. During the mid-quarter, the price trend remained stable, and prices dropped negligibly amid declined offtakes and procurement activities from the Horticulture sector and increased production rates due to a reduction in feedstock Magnesium Powder prices. However, prices surged towards the end of the quarter due to an increase in feedstock Magnesium Powder prices amid increased inquiries. Simultaneously, the availability inventory levels were inadequate amid a drop in production and supply rates during the regional summer holiday and weak availability of feedstock Magnesium supplies. Conclusively, the Magnesium Sulphate price rose by almost 16% during the quarter. At the end of the quarter, Magnesium Sulphate prices in Italy and Spain hovered at USD 514/MT and USD 484/MT, respectively.
For the Quarter Ending June 2023
North America
The Magnesium Sulphate prices showcased bearish movement in the North American region during the Quarter 2 of 2023. Initially, strengthening the US dollar decreased the import prices of MgSO4. The prices were stable and declined marginally amid moderate offtakes and an increase in labor costs amid shortages of labor due to the rise in recession in the region. Meanwhile, the demand fell during the quarter due to declined offtakes from fertilizer industries amid globally reduced demand for agrochemical products by farmers. It raised the inventory levels, and exporters declined their quotations to improve offtakes from the market. During the mid-quarter, the demand-supply dynamics remained stable, but an increase in the logistics costs provided cost support to the product prices. The decline in the import prices towards the end of the quarter reduced the import costs of Magnesium Sulphate. The exporters increased destocking practices. It raised the domestic inventory levels and contracted the product prices. At the end of the quarter, Magnesium Sulphate prices in the USA witnessed USD 415/MT.
APAC
In the Asian region, the Magnesium Sulphate price trend showcased bearish movement during quarter 2 of 2023. At the beginning of Q2, the demand dampened from the importers due to moderately low offtakes of fertilizers by the regional farmers and adequate availability of supplies in the regional market. The orders for Asian fertilizers were firm in the overseas market during the mid-quarter. Meanwhile, the strengthening of the US Dollar and the weakening of the other currencies impacted the contracted product prices in the international markets. At the same time, the decrease in the upstream Sulphur prices reduced the production costs of MgSO4. Towards the end of Quarter 2, the drop in the Magnesium Sulphate prices was marginal due to the increased buying activities before the Dragon boat festival in the key regional exporter and producer China. Furthermore, the demand remained moderate from the regional Pharma sector during the quarter, and at the end of Q2 2023, Magnesium Sulphate prices in Indonesia settled at USD 130/MT.
Europe
Like the North American market, the Magnesium Sulphate prices contracted in Europe during Q2 of 2023. Initially, the price trend was stable, and prices dropped marginally amid moderate offtakes and declined orders from buyers due to the firm availability of supplies. Simultaneously, sluggish consumption from fertilizer industries and depressed demand for agrochemicals in the agriculture sector negatively impacted the product costs, and producers revised their quotations negatively to improve the offtakes. At the end of the quarter, the decline in the price intensified amid firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. Furthermore, the decline in container freight costs further reduced the import prices of MgSO4. Conclusively, the Magnesium Sulphate prices in the Netherlands and Spain witnessed USD 394/MT and USD 418/MT, respectively, at the end of Q2.
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.
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.
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.
