The U.S. Magnesium Chloride market is holding steady halfway through December 2024, driven by constant demand and strong production activities. Feedstock supply, particularly for Hydrochloric Acid, remains crucial in supporting stable output levels as manufacturers overcome supply chain challenges and align operations with market demand.

The industrial de-icing sector is currently leading the demand for Magnesium Chloride, building on the momentum started in November. Colder conditions across various regions are maintaining the steady usage of Magnesium Chloride for de-icing applications, ensuring smooth inventory movement. As a result, market performance reflects an expected 3.1% price increase by ChemAnalyst for Magnesium Chloride in December, indicating firm support for Magnesium Chloride amid stable supply dynamics.

The paints and coatings sector continues to affect the Magnesium Chloride usage positively. In November, reducing mortgage rates created cautious optimism in residential construction, leading to improved demand for architectural coatings. This trend is carrying into December, creating modest but consistent demand for Magnesium Chloride in housing-related applications. Industrial coatings remain a steady contributor, particularly from infrastructure projects, while the automobile coatings segment continues to struggle with production challenges in the vehicle manufacturing sector.

The construction sector, another significant consumer of Magnesium Chloride, maintains positive momentum into December following November’s gains. Last month, the sector added 10,000 jobs, primarily in non-residential construction, which remains a key driver of demand. Rising wages, now at $36.22 per hour, have enabled contractors to attract and retain skilled labour, supporting continued project activity. Residential construction, however, remains slower due to persistent borrowing costs, limiting broader market growth in this segment.

Feedstock Hydrochloric Acid continues to influence the market dynamics as production costs trend upward. Following a 3.1% increase in November, Hydrochloric Acid costs are expected to rise further by 3.6% this month, reflecting higher production inputs and logistical difficulties. Despite these upward cost pressures, producers have maintained consistent Magnesium Chloride supply by improving extraction efficiencies and optimizing production schedules. These strategies are ensuring the stability of the Magnesium Chloride market amid rising costs.

Looking forward, the Magnesium Chloride market is projected to experience moderate price shifts as 2025 begins. As per the estimations by ChemAnalyst, in January, prices are expected to rise by 3.5%, supported by constant winter demand for de-icing applications and stable industrial activity. February is likely to bring brief stabilization as seasonal demand reduces and procurement slows. By March, prices are forecasted to increase again, rising by 2.9%, driven by growing demand from the construction and water treatment sectors as industrial activity recovers with improving weather conditions.

Overall, the U.S. Magnesium Chloride market remains stable through December, supported by firm demand and steady downstream performance in construction and coatings. Although feedstock costs for Hydrochloric Acid are trending upward, operational efficiencies have enabled producers to overcome cost pressures while maintaining consistent supply. With a positive outlook for winter applications and industrial recovery, the Magnesium Chloride market is set for a steady and optimistic shift into the first quarter of 2025.