For the Quarter Ending March 2023
North America
In the US market, the Zinc Sulphate costs have observed a volatile price trend in Q1. The average procurement from the downstream agrochemical firms has reduced the market value of Zinc Sulphate. Rising interest rates, tight monetary conditions, and volatility in input energy material prices have pressured the market growth of several bulk chemicals, including Zinc Sulphate. As per the market participants, the inquiries from the downstream agrochemical were based on a need-on-demand basis, increasing the supply-side pressure on the existing high inventories. Furthermore, the financial sector worries brought on by the failure of two banks based in the USA have further fumed the market downturn across the domestic region.
APAC
The prices of Zinc Sulphate have demonstrated a bullish run in the first two months of 2023 in the Indian domestic market. The active consumption from the downstream agrochemicals and other-end use industries has strengthened the market fundamentals. Thus, with an increase in new sales from the downstream end-use sectors, manufacturing activities have grown and remained resilient. The cost support from upstream Sulphuric Acid was also limited, as reported by market participants. Furthermore, the prices started to decline in late Q1, as the manufacturers had already replenished the stocks. The supply-side pressure has increased, which led to a price cut. The ChemAnalyst database shows that Zinc Sulphate (33% Zinc) Ex-Surat prices were settled at USD 74350 per ton at the end of the first quarter.
Europe
Despite a fall in TTF Natural Gas costs, the accumulation of high-price inventories has kept the prices of Zinc Sulphate buoyant in the German market. The raging inflationary pressures have slowed down the purchasing sentiments of end-use industries. As per the market players, in order to sustain the profit margins, the manufacturers did not slash their offers regardless of weak procurement from the downstream agrochemical sectors. Furthermore, the demand from the downstream agrochemical industries has started to improve, albeit at a slower pace, which has led to stabilized market operations in late Q1. Although, throughout the first quarter of 2023, the prices of upstream Sulphuric Acid remained on the lower end in the wake of sluggish demand fundamentals.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the costs of Zinc Sulphate decreased in the North American market with a rise in stockpiling of products with the traders and suppliers. Due to an abundance of material, the manufacturers have slashed their offers. The cost support from the upstream Sulphuric Acid has also weakened the Zinc Sulphate prices and progressed with a southward trend. The economic conditions in the USA have been impacted by high-interest rates and strict monetary policy imposed by Federal Reserve to fight inflation. The market players have reported that supply chain pressures have been eased, and there was ample availability of containers at the ports. The drop in freight charges across the US-Europe routes has also been reported.
Asia
The market prices of Zinc Sulphate fluctuated in an upward see-saw direction during the last quarter of 2022 in the Asian market, as per ChemAnalyst Research Team Data. Zinc Sulphate prices improved in December. Increasing procurement from downstream agrochemical industries and other end-use industries has positively impacted Zinc Sulphate market fundamentals. The supply of goods in the market has been in normal circulation, and the manufacturing firms operated at their regular rates. On the demand side, domestic inquiries from downstream fertilizers industries have continued to be weak in November. Furthermore, manufacturing activities have improved in the Indian domestic market as inflationary pressures have softened.
Europe
The prices of Zinc Sulphate plummeted in the European market during Q4 of 2022, with lower procurement of fertilizers from the downstream sectors. Zinc Sulphate market sentiment has been impacted by reduced demand from the downstream agriculture sector. There has been a gradual increase in product supplies in the domestic market. A crippled market has led to lower manufacturer quotations. However, the weak participation of players in the middle eastern market further plunged domestic players to decrease their quotation rates. Furthermore, the TTF natural gas costs softened in December 2022, alleviating stress on the production costs of Zinc Sulphate in the German market. The dormant planting season in December has also supported the price decline of Zinc Sulphate in Q4-end.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, Zinc Sulphate prices witnessed plunging sentiments amidst a weak demand outlook. The increment in raw material costs and diminishing demand from the downstream fertilizer sector have subdued the market sentiments toward Zinc Sulphate. Furthermore, in response to recent increases in energy costs, European zinc smelters reduced output. The reduction in market values of upstream Zinc and Sulphuric Acid has curtailed the price movement of Zinc Sulphate in the domestic region. However, natural gas prices fluctuated as the European countries' demand remained uncertain. The purchasing power of the terminal consumer was inadequate, foreseeing rising inflation in the regional market. Thus, as a ripple effect of falling raw material Zinc and Sulphuric acid costs, the Zinc Sulphate prices plunged.
Asia Pacific
In the Indian market, Zinc Sulphate prices witnessed an episodic price trend during the third quarter of 2022, as the ongoing Kharif planting season boosted the downstream fertilizer demand and strengthened the market value of Zinc Sulphate among traders. According to market participants, the rising costs of zinc have put significant downward pressure on the manufacturing costs of Zinc sulphate. Furthermore, the overall supply outlook for Zinc Sulphate in the Indian domestic market remained adequate as production sites continued to operate normally. The decreasing availability of downstream products from China shifted the global supply chain trend toward India, boosting Zinc Sulphate supply fundamentals. However, reduced offtakes from the downstream agriculture sector have pressured Zinc Sulphate market sentiments in the domestic region in September. Thus, the Zinc Sulphate (33% Zinc) prices for Ex-Surat (India) settled at USD 921/MT at Q3-end.
Europe
The Zinc Sulphate prices showcased mixed sentiments during the third quarter of 2022 amidst soaring energy and raw material costs. The significant increment in natural gas prices has pressured regional production activities. The manufacturers have opted for production cuts as they were unable to pass on the price hike to the terminal consumers. On the upstream price front, the prices of Sulphuric Acid have dropped amid the declined demand from the downstream market. The plunge in upstream raw materials has prompted negative pressure on the pricing dynamics of Zinc Sulphate in the market. The consumption levels from the downstream agriculture market remained relatively low as the region was grappling with high inflationary pressures and surging energy costs. Thus, the prices of Zinc Sulphate remained bearish in Q3.
The Zinc Sulphate market expanded in the second quarter of 2022. The spot offers for Sodium Sulphate have been observed to be on a bullish run throughout Q2. The ongoing hostilities between European nations have exacerbated the market inquiries for Zinc Sulphate and significantly surged the raw material costs. In addition, the hindered black sea movement has constrained the downstream agricultural sector's supplies. Furthermore, the supply shortages and surged input costs have resulted in escalated offers for upstream Sulphuric Acid, prompting substantial cost pressure on the market values of Zinc Sulphate in the regional market. Thus, the increased manufacturing costs have pushed the manufacturers to revise their quotations in the second quarter of 2022.
During the second quarter of 2022, the price offer for Zinc Sulphate has escalated by two-digit figures in the domestic region of India. The supply turmoil unleashed by Russia's invasion of Ukraine and stringent lockdown restrictions in China has resulted in the curtailed availability of major feedstock materials. In addition, the volatile energy costs have exerted enough cost pressure on the manufacturing costs of Zinc Sulphate. Furthermore, on the upstream front, the constrained output of Zinc amid increased exchange prices and workforce shortages has also inflicted market sentiments on Zinc Sulphate. In addition, the increased demand from the downstream agriculture sector before the Kharif planting season has further supported the uptrend observed in Zinc Sulphate costs towards the end of the second quarter.
The Zinc Sulphate market has oscillated amid swindling demand from the downstream agricultural sector and water-treatment industries in the second quarter of 2022. The sanctions imposed by European nations on Russia have resulted in curbed supplies of significant energy materials for the major economies of Europe. Furthermore, the global supply turmoil and escalated upstream Sulphuric Acid costs have provoked enough cost pressure on the market values of Zinc Sulphate among the traders. As a result of escalated upstream Sulphuric Acid Prices, the manufacturing costs of Zinc Sulphate have also risen in the first half of Q2. However, towards the quarter's end, the uncertainties in terminal demand have prompted bearish market sentiments.