Magnesium Powder Prices Tumble in the US Amidst Drop in Regional Order

Magnesium Powder during the entire month of August demonstrated assorted market sentiments for both grades, i.e., a persistent dip in the prices of Magnesium oxide while the cost of Magnesium Stearate went down steadily after marching a significant rise in the previous month.

The prices of Magnesium Powder, including Magnesium oxide, continued to decline throughout the North American region due to a continuous decline in domestic demand, weak import growth from major exporting countries like China, and low consumption in end-user industries like confectionery and beverage applications. As the middle of the third quarter gets underway, there was a weak inquiry of Magnesium Powder from the adjacent states, primarily from the food and beverage industry, for a few magnesium derivatives like Magnesium chloride, lactate, citrate, and stearate that kept the price trajectory on the southward direction. However, the recent geopolitical conflict in Europe has significantly contributed to an increase in oil prices worldwide when considering production activity and availability for both grades of Magnesium Powder on the global market. As a result, the overall prices of upstream materials for production in the exporting region and the global market increased, further affecting the cost of producing Magnesium Powder. From the manufacturer's perspective, the effects of rising energy prices resulted in higher chemical prices and, to a certain extent, reduced profits. Several end-use markets were impacted by the export and import of raw materials across the importing regions, including the United States and the European region, because of decreased purchasing activity for Magnesium Powder from the regional market.

Conversely, throughout the entire month, shipping costs and other freight fees also increased at a higher rate, making it challenging for customers to purchase the goods. As a result of recent high inventories of Magnesium Powder in both grades and low regional consumer spending, the cost of moving containers has since returned to levels seen before the health crisis. This is another factor keeping prices on the lower end of the spectrum. In contrast to this current market circumstance, the upstream market of Magnesium Powder remains affected by Magnesium oxide as Magnesium prices show a noticeable rising trend during this month. Due to the difficulty in getting the products at a lower price, the factories were more than willing to increase their domestic prices. Like the supply side, this month's trader enthusiasm for purchasing Magnesium Powder was low due to rising domestic and international prices. However, throughout this month, the price support from Upstream Stearic Acid consolidated the downward market trend for Magnesium Stearate, keeping its market trend on the southerly side.