Magnesium Powder Market shows a Mixed Trend So Far in June 2023

In USA’s domestic market, the demand for Magnesium Powder for both grades i.e., Magnesium Oxide and Magnesium Stearate dropped in the month of May 2023. However, at the beginning of June, the demand for Magnesium Oxide started to gain momentum and so far, the scenario has been positive. Earlier in May factors such as low Magnesium and Stearic Acid cost (upstream materials), weak trade activity, and reduction in inquiries leading to an oversupply with local providers kept the market sentiments of Magnesium Powder in the United States on the South side.

One of the major causes of the decline of Magnesium Powder prices is the weaker demand from the downstream market, leading to supply variability and shifting end-user purchasing activities on the downward side. Moreover, as per the analysis, the price of Magnesium Powder primarily of Magnesium Stearate went down since the mid of Q1-2023 and is estimated to demonstrate a similar trend in forthcoming months, whereas the cost of Magnesium Oxide is likely to stay elevated in the approaching months. Additionally, because domestic demand for Magnesium Powder was weak, suppliers and traders concentrated on setting lower quotations to destock their existing inventories. Besides this, another aspect that kept Magnesium Powder's favorable trend was influenced by shifting consumer demand, steady trade momentum, and a decline in ocean freight costs.

Furthermore, Inflation also kept increasing along with energy prices, which generally influenced the overall market dynamics of Magnesium Powder in the United States. Concerning the commerce, the trade war between the US and China has had a negative impact on the economies of both countries. As Chinese goods are now subjected to higher tariffs which in turn increased their cost to American consumers. Because of which It is quite possible that the two nations will probably reach a new trade agreement in the future. According to ChemAnalyst, market sentiment for magnesium powder may differ for both grades, with magnesium oxide costs rising and magnesium stearate prices falling.

Similar to the US market, the price of Magnesium Powder has also been fluctuating in the Chinese market. With fewer orders from the US market for Magnesium Stearate, it is likely that producers will lower their prices. Manufacturing activity in China was also mixed in May. Some sectors showed signs of improvement, while others remained weak. However, the Chinese manufacturing purchasing managers' index (PMI) rose to 50.9 in May from 49.5 in April, indicating that manufacturing activity expanded for the first time in three months.