For the Quarter Ending December 2024
North America
The North American Boric Acid market in Q4 2024, particularly in the USA, experienced fluctuating conditions. Weak demand from the construction sector, particularly in cement production, was a key driver, influencing Boric Acid's overall market performance.
Several factors influenced the market. Weak demand from the construction sector, particularly in cement production, was a major driver, affecting Boric Acid. Supply chain disruptions (port congestion, weather-related delays, and labor strikes) caused significant volatility, with potential spillover effects on Boric Acid. Seasonal slowdowns in construction activity towards the end of the year further dampened demand for Boric Acid. The overall economic climate might have also played a role, impacting investment and purchasing decisions in the construction sector.
Market participants faced several challenges. Fluctuating demand in the construction sector created pricing instability. Supply chain disruptions led to price volatility and increased uncertainty. Seasonal slowdowns and economic headwinds further complicated the market outlook. The need to manage inventory levels in the face of fluctuating demand and supply remained a significant concern.
APAC
The APAC Boric Acid market in Q4 2024, particularly in Japan, experienced a price decline driven by weak demand, especially in the construction sector. While supply remained relatively stable, the overall economic climate, particularly in Japan, contributed to the downward pressure on prices.
October saw a 2.5-3% price decline in both India and Japan due to moderate demand and steady supply. November witnessed a sharper 3.5% price drop in Japan, impacting India with a 2% reduction due to cheaper imports. December showed contrasting trends: a slight 0.5% price increase in India due to rising procurement costs, and a further 3.5% decline in Japan due to global competition.
Several factors affected the market. Weak construction sector performance in Japan, characterized by rising bankruptcies, subdued investor confidence, and high debt levels, significantly impacted demand. Rising costs in the construction sector (labor and borrowing) further dampened demand in both India and Japan. Stable supply and efficient production in Japan, coupled with robust export activities, contributed to the competitive pricing.
Market participants faced challenges including weak demand, particularly in the construction sector which affected both countries; the effect was amplified in Japan. Global competition and the need to maintain export volumes impacted Japanese pricing strategies. Overall economic uncertainty and inflation added to the challenges faced by businesses in Japan, impacting investment and growth in the Boric Acid market.
Europe
The European Boric Acid market in Q4 2024, particularly in Germany, experienced subdued conditions largely mirroring the trends in the Fly Ash market. Weak demand from the construction sector, coupled with ample supply, contributed to price stability or even potential slight decreases in the prices of Boric Acid.
Several factors played a key role in shaping the pricing trajectory of Boric Acid. Weak demand from the construction sector, driven by economic and political uncertainties, was a key driver impacting Boric Acid. Reduced construction activity and lower cement production led to diminished demand for construction materials. Ample supply further contributed to price stability. Port disruptions in Hamburg might have had a limited impact, on the supply chains for Boric Acid.
Market participants faced challenges including persistently weak construction demand, making it difficult to achieve optimal pricing. The need to manage inventory levels in a low-demand environment was a concern. Economic and political uncertainties created an environment of cautious purchasing decisions, further dampening demand.
For the Quarter Ending September 2024
North America
In Q3 2024, the Boric Acid prices fluctuated within a narrow range under the influence of multiple factors acting simultaneously. Meanwhile, the U.S. economy exhibited mixed signals, maintaining underlying strength despite persistent inflation concerns and geopolitical tensions. Supply dynamics were shaped by the interplay of steady manufacturing activity and evolving trade conditions.
The Producer Price Index (PPI) for manufacturing industries slightly declined from 249.624 in Q2 to 248.383 in Q3, reflecting minor cost reductions for producers. Inventory restocking after significant drawdowns in the first quarter contributed to a rebound in GDP growth, which reached 3.0% in Q2 and is projected to grow at 2.7% for the year. Consumer spending and business investments, fueled by supportive policies like the CHIPS Act, continued to drive demand, while inflationary pressures eased, with CPI inflation falling below 3.0% by July.
However, geopolitical uncertainties—such as the Ukraine and Middle East conflicts—along with potential tariffs on imports posed risks to supply chains, threatening to elevate costs and disrupt trade flows. Despite these challenges, the Fed’s expected rate cuts aim to bolster household spending and economic momentum, though labor market shifts and trade policy uncertainties may continue to impact the supply landscape into 2025.
Asia
In Q3 2024, Boric Acid prices in Japan remained stable in July and August at USD 1220/MT but declined by 4.1% in September, reflecting softening market dynamics. The initial stability was driven by a well-balanced supply chain, steady production rates, and stable demand from the construction and ceramics sectors. However, in September, easing global supply chain pressures, reduced freight costs, and weaker external demand contributed to the price drop. Despite stable end-use demand, economic challenges such as China’s real estate slowdown, high-interest rates in the US and Europe, and sluggish overseas markets tempered market momentum. Supply remained uninterrupted throughout the quarter, with fewer disruptions from logistics and freight markets. While demand remained steady, modest growth in Japan’s construction sector and cautious consumer sentiment limited any significant expansion. Overall, Boric Acid prices decreased by around 4% over the quarter, with global uncertainties expected to continue influencing market trends.
Europe
During Q3 2024, Boric Acid prices in Europe fluctuated within a narrow range, influenced by economic uncertainties linked to the ongoing conflict in West Asia and sluggish growth in both Europe and the U.S. Rising freight costs, container shortages, and logistical issues were prominent. Shipping giants such as MSC and CMA CGM raised FAK rates to as high as $6,500 per container, driven by space limitations and added operational fees. Delays due to Red Sea disruptions and Singapore port congestion further complicated the situation. Air freight rates from Northeast Asia to Europe also spiked, fueled by booming e-commerce and semiconductor demand, with spot rates rising 40% year-over-year. Despite efforts to expand capacity, the imbalance between outbound and return loads persisted. With rising geopolitical tensions and seasonal demand, freight market volatility is likely to extend into Q4. Economically, Europe experienced stagnation in Q3, as Germany’s industrial sector struggled with weak output, high energy costs, and falling exports, contributing to broader challenges across the eurozone.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Boric Acid market experienced notable price fluctuations driven by a complex interplay of demand, supply, and the costs associated with imported materials. As the USA remains a net importer of Boric Acid, shifts in the global market significantly influenced domestic prices.
Toward the latter part of the quarter, the market saw a price rebound, propelled by logistical challenges, higher freight costs, and unstable supplies due to geopolitical tensions. This created a nuanced pricing environment, marked by tight supply chains and a resilient demand structure. Within the USA, the Boric Acid market showcased pronounced price volatility, with the region experiencing some of the highest price changes. The overall market trends reflected a robust sentiment, with seasonal effects playing a role in the fluctuations.
The observed correlation in price changes underscored the impact of constrained supply and sustained demand across various industrial sectors. This period of rising prices, driven by limited supply channels and increasing demand, highlighted a bullish market sentiment, proving advantageous for stakeholders and marking a significant phase of price elevation in the Boric Acid market.
APAC
In Q2 2024, the Boric Acid market in the APAC region demonstrated a consistent downward pricing trend. This decline was influenced by several significant factors, including increased supply, subdued demand, and economic uncertainties. Despite a rise in global freight charges and fluctuating ocean freight rates, the prices remained on a downward trajectory due to the ample availability of Boric Acid coupled with cautious purchasing behavior among manufacturers. The bearish market sentiment was further compounded by slow wage growth and increased import prices, which eroded purchasing power and led to decreased industrial activity. No major plant shutdowns were reported during this quarter, ensuring a stable supply of Boric Acid in the market. Focusing exclusively on Japan, where the maximum price changes were observed, the overall trend was marked by a notable decline. Seasonality played a role, with the market generally expecting an uptick in demand during peak seasons. However, this anticipated surge did not materialize, exacerbating the downward pressure on prices. The correlation between slow economic growth and price changes was evident, as industrial sectors remained cautious amid uncertain conditions. Thus, the price of Boric Acid CFR Osaka in Japan decreased by 2% in May while remaining stable for other months.
Europe
In Q2 2024, Boric Acid pricing in Europe experienced a significant upward trend, largely driven by elevated import costs and logistical challenges. The primary catalysts for this increase were the high freight rates in the Asian shipping industry and a series of General Rate Increases (GRIs) imposed by carriers. These factors led to considerable hikes in transportation expenses, directly impacting the cost of imported chemicals. The downstream glass, ceramics, and construction industries demonstrated robust demand, further reinforcing this upward trajectory. Despite fluctuations in construction output within the broader European context benefited from a resilient construction sector, driven by improving economic activities. In terms of seasonality, the summer months bolstered demand from the construction and automobile industries, thereby sustaining high price levels. The correlation between heightened freight costs and increased raw material prices due to rising upstream crude oil prices also played a critical role. Disruptions in the form of plant shutdowns were notably absent, ensuring a stable supply environment.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Boric Acid market witnessed a varying pricing landscape influenced by various factors. Overall, the pricing trend for Boric Acid in the region leaned towards a bearish trajectory. Notably, there was a significant decline observed in January 2024, primarily attributed to reduced demand from the downstream construction sector.
Additionally, subdued purchasing activity during the winter holiday season further exacerbated the downward pressure on prices. This adjustment was facilitated by improved supply conditions and a more balanced interplay between demand and supply dynamics. Although specific percentage changes were not provided, an overall decline in prices was noted when comparing quarterly performance to the corresponding period of the previous year.
Throughout the quarter, seasonal patterns were evident, with a decrease in demand observed during the winter holiday period. However, signs of market stabilization and gradual recovery began to emerge as the quarter progressed. These trends indicate the resilience of the Boric Acid market, with potential opportunities for recovery in demand and pricing dynamics in the subsequent quarters.
APAC
The first quarter of 2024 has been characterized by a mixed pricing environment for Boric Acid in the APAC region. Overall, market prices have remained stable, with some fluctuations observed in certain countries. In India, the largest price changes have been seen, with a significant decrease of 1.6% in January, followed by a slight increase of 2.9% in February. This trend can be attributed to various factors, including seasonal demand patterns and supply chain disruptions. Seasonality has played a role in the price changes, with demand typically lower during the month of December due to destocking by traders. This has led to a decrease in prices during that period. Furthermore, external factors such as the Red Sea crisis have impacted the supply chain, leading to supply disruptions and increased freight charges. This has contributed to the overall price volatility in the market. As the quarter comes to an end, the latest price recorded for Boric Acid Granular CFR JNPT in India stands at USD 1200/MT. This reflects a stable pricing environment, with prices remaining unchanged in recent months. Overall, the pricing environment for Boric Acid in the APAC region has been characterized by stability, with some fluctuations in certain countries. Factors such as seasonality and supply chain disruptions have influenced prices, but the market has shown signs of stabilization.
Europe
In the first quarter of 2024, Boric Acid pricing in the European region exhibited a consistent increase during the initial two months, driven by various factors shaping market dynamics. Notably, robust demand for Boric Acid across sectors such as coatings and construction played a significant role in propelling prices upwards. Additionally, disruptions in ocean routes adversely impacted international trading activities, further contributing to the price surge. Moreover, demand from importing nations remained strong, reinforcing market dynamics and sustaining upward pressure on prices. However, as March approached, prices experienced a dip due to weakened client demand, particularly evident in the German construction sector. Market uncertainty and elevated interest rates influenced the continued decline in the German construction industry, leading to reduced purchasing activity and downsizing by construction firms. Consequently, demand for Boric Acid witnessed a decrease during this period, marking a shift from the earlier upward trend. This fluctuation in pricing and demand underscores the dynamic nature of the Boric Acid market in Europe, influenced by both domestic and international factors. It highlights the importance of monitoring market trends and adapting strategies to navigate through evolving market conditions.
