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Copper Sulphate Prices Surge Amidst Industry Demand in Asia
Copper Sulphate Prices Surge Amidst Industry Demand in Asia

Copper Sulphate Prices Surge Amidst Industry Demand in Asia

  • 19-Apr-2024 3:49 PM
  • Journalist: Motoki Sasaki

Mumbai (India): In March 2024, the price of Copper Sulphate witnessed a significant increase in the Indian market, propelled by strong demand from downstream sectors such as agriculture, paints, and other end industries. Additionally, enhanced demand from international markets also played a role in influencing the price of Copper Sulphate in India.

Copper Sulphate prices experienced a notable surge in India, driven primarily by the upcoming Kharif season in agriculture. This price hike was further fueled by the government's substantial allocation of Rs 1.64 lakh crore towards fertilizer subsidy for FY25, demonstrating its commitment to supporting the agricultural sector and boosting investor confidence.

Improved market sentiment and increased buying activity further fueled demand, while increased demand from downstream sectors including paints and coatings, due to heightened construction activity, added to the positive market sentiment. The sustained momentum in the construction sector, evidenced by a 30.6% year-on-year increase in under-construction project prices across India's top 13 cities from January to March 2024, further reinforced market optimism.

As India's manufacturing sector continues to grow robustly, supported by resilient global demand and subdued inflationary pressures, the demand for Copper Sulphate increased. The ongoing construction boom, fueled by substantial government investments and streamlined regulations, further fosters heightened demand for Copper Sulphate within the Indian market. The consistent demand for Copper Sulphate within India's downstream agriculture and construction sectors played a pivotal role in driving up its price. Copper Sulphate, renowned for its versatility and effectiveness in agriculture, paints, and decorative coatings, settled at INR 209600/MT, Granular Ex-Mumbai in March, marking a substantial 4.1% increase from the previous month.

To bolster agricultural productivity and support farmers, the Indian government implements subsidies for various fertilizers, ensuring accessibility. Despite domestic production facilities operating at maximum capacity to meet downstream industry demands, the price of the feedstock sulphuric acid weakened due to low import prices from exporting nations. Moreover, global agricultural markets faced instability from supply chain disruptions, geopolitical tensions, and escalating energy costs.

These factors, compounded by rising energy expenses and export restrictions by major producers like China and Russia, further elevated fertilizer prices, consequently impacting the price of Copper Sulphate. Additionally, India's manufacturing improved further in March, indicating robust growth in new orders and heightened trading activities. The increased demand in the agriculture sector prompted manufacturers to ramp up consumption of Copper Sulphate to meet growing needs. Furthermore, improved demand from overseas markets also contributed to the impact on the price of Copper Sulphate in India.

In conclusion, the analysis indicates that the price of Copper Sulphate is likely to maintain its upward trajectory in the upcoming months, particularly with the onset of the Kharif crop season. The strong demand from downstream sectors, propelled by factors like the thriving manufacturing industry and heightened consumer purchases, is anticipated to support the continued upward trend in Copper Sulphate prices.

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