August 2024: Strong Agrochemical Demand Fuel Copper Sulphate Price to Rise in APAC

In early August 2024, Copper Sulphate prices across the APAC region, particularly in India and China, experienced notable upward pressure. This trend was largely driven by robust demand from the agrochemical sector amid the ongoing plantation and mid-crop seasons. In India, the domestic market witnessed a notable increase in demand, supported by favorable market conditions and strong performance from key industry players.

The supply-demand imbalance in India became more pronounced as procurement activities intensified, leading to a noticeable decline in inventory levels. The increased buying activity, driven by expectations of sustained consumption, played a crucial role in pushing Copper Sulphate prices higher (by around 2.8%). The broader economic environment, characterized by ongoing agricultural initiatives and government-supported farming programs, also contributed to the optimistic market sentiment. This positive outlook encouraged businesses to bolster their inventories in preparation for continued demand growth throughout the rest of the year. Further adding to this, India Pesticides Limited, for instance, reported a 9.4% year-over-year increase in total revenue for the period ending June 2024, alongside a remarkable 72.5% quarter-over-quarter growth. These figures underscored the heightened activity within the sector, further contributing to the surge in Copper Sulphate demand.

China's Copper Sulphate market exhibited similar dynamics, with strong domestic and international demand driving prices upward. The tight supply situation in China was exacerbated by accelerated global procurement activities and congestion at major ports, further worsening the existing supply-demand imbalance. Despite a slight decline in the country's manufacturing sector in July 2024, the overall stability allowed the market to carry its bullish momentum. Industry participants, buoyed by the positive market outlook for Copper Sulphate, continued to exhibit confidence, leading to sustained price increases.

A key factor contributing to the price surge in both India and China was the high cost of feedstock sulphuric acid, which remained elevated due to significant demand from downstream agrochemical enterprises. The increased consumption of sulphuric acid created a supply-deficient situation, further intensifying the upward pressure on Copper Sulphate prices. This cost support, coupled with strong demand from the agricultural sector, reinforced the ongoing price hikes.

As the monsoon season progressed in India, Copper Sulphate consumption saw further intensification, driven by farmers preparing for the Kharif planting season. Similarly, in China, the agricultural sector's efforts to optimize crop yields under favorable weather conditions and government-supported initiatives continued to bolster demand for Copper Sulphate. These factors, combined with the tight supply conditions, have kept market sentiments strong.

Looking ahead, the outlook for Copper Sulphate prices in the APAC region remains positive. The sustained demand from the agrochemical sector, coupled with ongoing supply constraints, is expected to maintain upward pressure on prices in the coming months.