The Magnesium Sulphate prices witnessed a monthly increase of 1.3% in the European region during August 2024. The producers raised their Magnesium Sulphate quotations amid consistent demand and inadequate availability of supplies in the market. The market sentiments for Magnesium Sulphate were bullish as the demand was robust from the regional pharma sector. SCHOTT Pharma saw a revenue boost of 11% in the second quarter of 2024, reaching EUR 247 million at constant currencies, up from EUR 224 million in Q2 2023. Although revenue rose, EBITDA saw a modest dip due to ramp-up expenses from ongoing capacity expansions and a high comparative base, resulting in an EBITDA margin of 27.0%, down from 30.7% the previous year. Additionally, reported revenues and EBITDA were impacted by notable currency headwinds. Despite these challenges, demand for SCHOTT Pharma’s products remained strong, highlighting favorable market conditions, and reinforcing the company’s growth trajectory for the fiscal year.

However, there was a shortage of availability of Magnesium Sulphate supplies because of weak supply rates amid the labor deficit in the region during the summer holidays. At the same time, the operating rates at Magnesium Sulphate manufacturing units were not optimum due to the stressed availability of feedstock Magnesium and Sulphuric acid supplies. Meanwhile, the Eurozone Manufacturing Purchasing Manager’s Index remained the same as the previous month in August 2024, reflecting consistent conditions in the manufacturing sector. The Manufacturing PMI Output Index surged to a two-month high, signalling a notable uptick in production levels. However, this positive shift was accompanied by a rise in Eurozone goods prices for the first time since April 2023, highlighting a significant change in the inflationary landscape.

Furthermore, the Consumer Price Index (CPI) for the Euro Area rose to 126.74 points in August 2024, up from 126.54 points in July, indicating a notable increase, reflecting a continued upward trend in consumer prices. Over the past decades, the CPI in the Euro Area has averaged 93.01 points, with August's figure hitting a historic peak. This represents the highest level ever recorded, surpassing previous highs, and contrasted sharply with the record low of 70.97 points in January 1996. This substantial rise underscores the significant inflationary pressures currently impacting the Euro Area. Consequently, Magnesium Sulphate prices were firm in the market in August 2024. According to the ChemAnalyst data sources, the Magnesium Sulphate FOB Hamburg quotations in Germany witnessed USD 628/MT at the end of August 2024.

Magnesium Sulphate prices in the European region are anticipated to decline by the end of the third quarter of 2024. Demand for Magnesium Sulphate might stabilize among buyers, while improved supply availability is likely due to increased services and labor activities following the regional summer holidays. Additionally, operational costs may decrease with the expected easing of feedstock sulphuric acid prices, prompting market players to lower their quotations to boost buyer offtakes.