August 2024 Scenario: Zinc Sulphate Prices Inclines in India, USA Shows a Mix

Zinc Sulphate prices in India's domestic market have been on the higher side during the month of August 2024. The persistent inquiries from the downstream agrochemical sector reinforced the Zinc Sulphate market fundamentals in India. The upward shift in the realization of Zinc Sulphate prices has also been attributed to the rise in cost support from upstream Zinc Oxide.

In August 2024, a variety of trends were observed in the Asian freight sector. It was anticipated that demand from Asia would remain high, particularly in the third quarter. Many trade routes were fully booked for container shipping lines. Capacity has increased by up to 10% due to the introduction of new vessels into the market, although other factors have countered this. The Cape of Good Hope was being used by vessels as a diversion due to the increasing port congestion. Fears of a decline in manufacturing output could make it difficult to keep supply and demand in balance. There were still shortages of equipment in some places, like Brazil and India.

In North America, Zinc prices have been on the rise since the start of the month. However, Zinc Sulphate prices exhibited a mixed trend. It was observed that the Zinc Sulphate prices increased in the first half of the month and eventually decreased in the later half.

Considering downstream, spot fertilizer prices have remained relatively low for the past six weeks, with no significant price changes. US fertilizer producers expressed frustration that fertilizer prices were not declining in line with the multi-year lows in grain prices. Despite the recent stability, fertilizer prices were still higher than their levels a year ago. Dealers have been slow to reduce fertilizer prices, contributing to the overall market stability. The surprising strength of the US fertilizer market could be partially attributed to China's reduced fertilizer exports.

The Biden-Harris Administration collaborated with the farmers to Increase innovative domestic fertiliser production. Through the Commodity Credit Corporation-funded Fertilizer Production Expansion Program (FPEP), the Department was providing USD 35 million to seven projects across seven states. Grants were given to independent business owners via this program to assist with equipment modernization, technology adoption, facility construction, and other needs. The goal of President Biden's Investing in America initiative was to expand the economy of the country both from the bottom up and from the middle out.

According to ChemAnalyst Pricing Intelligence, it is expected that the prices of Zinc Sulphate will continue to remain elevated in the North American market. With the peak planting season approaching, the demand from the fertilizer industry downstream is expected to be on the higher end. This will eventually push the Zinc Sulphate prices higher in the domestic market. However, as for India, the price trend for Zinc Sulphate is expected to be the opposite. Owing to the ample availability of finished stock of Zinc Sulphate, the prices will be on the lower side.  A drop in offtakes from the downstream agrochemical industries may lead to fluctuations in Zinc Sulphate prices.