For the Quarter Ending September 2024
North America
The North American boron market, particularly in the United States, exhibited bearish conditions throughout Q3, marked by a modest 1% decline in market performance between the first and second half of the quarter. The market continues to face challenges with a distinct supply & demand imbalance, where moderate supply levels overshadow low demand patterns.
The US market landscape was primarily shaped by a persistent manufacturing sector contraction, marking its sixth consecutive month of decline. While supply chain maintained stability with consistent import flows from Turkey and South America, the approval of the Rhyolite Ridge lithium-boron project in Nevada emerged as a significant development for future domestic supply.
Demand witnessed substantial weakness across key downstream sectors. The automotive industry faced a sharp 17.5% decline in vehicle sales, while reduced oil drilling activity, evidenced by a drop in rig count, further dampened consumption. Consumer confidence hit a yearly low, compounding the market's bearish sentiment. The quarter closed with Boron prices at USD 705/MT CFR Los Angeles.
APAC
In Q3 2024, the Boron market in the APAC region remained stable, with key factors influencing market prices and supply-demand dynamics. The market saw stability due to consistent global supply chains and balanced demand dynamics. Various factors such as industrial activities, economic conditions, and seasonal trends played a crucial role in maintaining price stability. Despite challenges like disruptions in supply chains and potential plant shutdowns, the market managed to sustain its stable pricing environment. China, experiencing the most significant price changes in the region, showcased a resilient pricing trend. The quarter recorded a 4% increase from the previous quarter, reflecting a steady growth pattern. The correlation between price changes in the first and second halves of the quarter remained negligible, indicating a balanced market throughout. Ultimately, the quarter ended with a price of USD 710 per metric ton for Natural Boron Ore CFR Shanghai in China, highlighting the overall stability and positive sentiment in the Boron pricing environment for Q3 2024.
Europe
The Boron market in Europe during Q3 2024 has remained stable, characterized by consistent pricing trends. Various factors have influenced market prices, including demand fluctuations from key industries such as construction, automotive, and renewable energy. Weather conditions, regulatory changes, and economic uncertainties have also played a role in shaping the pricing landscape. Despite these influences, the market has maintained a steady course, with no significant disruptions or plant shutdowns reported. In Spain, the market has experienced the most significant price changes within the region. Price fluctuations have been observed due to mixed demand signals from sectors like agriculture, construction, and electronics. Seasonal factors, such as weather impacts on construction activities, have contributed to price adjustments. The correlation between price changes in Spain and the overall European market highlights interconnected trends and market dynamics. The quarter ending price for Natural Boron Ore FOB Barcelona in Spain stood at USD 615 per metric ton, reflecting the stable pricing environment prevalent throughout Q3 2024.
For the Quarter Ending June 2024
North America
The North American boron metal market faced challenges in the second quarter of 2024. Upstream, production remained relatively stable, but margins were squeezed due to persistent energy costs and the competitive global boron market. The technical complexities and high energy requirements associated with boron metal production amplified these pressures.
Downstream, demand from niche industries such as aerospace, defense, and specialty alloys showed resilience. However, overall consumption was limited by the market's relatively small size and the high cost of boron metal compared to alternative materials. Furthermore, economic uncertainties and supply chain disruptions hindered growth.
While the long-term potential of boron metal remains promising due to its unique properties, the market in Q2 2024 was characterized by a delicate balance between innovation and economic realities. Producers and consumers alike are closely monitoring technological advancements and market dynamics to navigate the challenges and capitalize on emerging opportunities.
APAC
In Q2 2024, the APAC region experienced a notable increase in boron prices driven by a confluence of factors. Demand for boron remained robust due to its critical applications in industries such as agriculture, glass, ceramics, and semiconductors. The limited supply, exacerbated by regulatory constraints and logistical challenges, further intensified the upward price pressure. Market speculation and strategic stockpiling by key players also contributed to sustained price hikes. Focusing exclusively on China, the country witnessed the most significant price changes, underpinned by a combination of high domestic demand and global market dynamics. The overall trend reflected a strong and consistent upward trajectory, influenced by seasonal factors that saw increased industrial activity post-winter. The correlation between decreasing domestic manufacturing activity and rising commodity prices was evident, as manufacturers sought to secure essential raw materials amidst uncertain supply chains. Plant shutdowns, such as those experienced in major boron mining facilities, compounded the supply issues, further inflating prices. Compared to the previous quarter in 2024, boron prices surged by 14%, reflecting robust market momentum. The quarter concluded with a price of USD 750/MT for Natural Boron Ore CFR Shanghai, underscoring a positive pricing environment driven by strong market fundamentals and supply disruptions. The sustained increase in boron prices throughout the quarter indicated bullish sentiment, with expectations of continued firmness in the foreseeable future.
Europe
In Q2 2024, the European Boron market experienced a notable price surge, driven by a confluence of macroeconomic factors, strategic regulatory shifts, and fluctuating energy costs. The EU Critical Raw Materials Act (CRMA) significantly impacted supply dynamics, mandating benchmarks for domestic production, processing, and recycling of critical raw materials. This legislation aimed to reduce reliance on non-EU sources, creating a bullish market sentiment for Boron. Additionally, rising alloy surcharges due to elevated nickel and molybdenum prices, along with increased energy prices, further fueled the upward trajectory of Boron prices. Focusing on Spain, the price of Natural Boron Ore experienced the most significant changes in the region. The Spanish market saw a steady increase in demand, particularly from the automotive sector, which registered a substantial rise in new car registrations, indicative of a robust recovery. Despite a general slowdown in broader manufacturing activity, the demand for Boron remained resilient. The correlation between energy price fluctuations and Boron prices was evident, with higher gas and CO2 emissions costs influencing market dynamics. Overall trends reflected a 14% increase from the previous quarter in 2024. The European Central Bank's interest rate cut further bolstered economic confidence, contributing to sustained demand and higher prices. The quarter concluded with Natural Boron Ore priced at USD 630/MT FOB Barcelona, underscoring a positive pricing environment driven by strategic supply management, regulatory frameworks, and resilient demand amid economic fluctuations.
For the Quarter Ending March 2024
North America
Boron market in the North America region experienced a multiple fluctuation in pricing environment during the first quarter of 2024. The market was influenced by various factors, including supply and demand dynamics, global economic conditions, and seasonal fluctuations. Also, the raw material like Ulexite shows a stable price trend in the North America region particularly in USA.
Seasonal factors played a role in price fluctuations, with the winter season leading to reduced demand from the construction sector. However, other industries, such as automotive and chemical manufacturing, continued to drive demand for Ulexite. On March 21st, the United States has offered significant support for rare earth projects, which also involve the extraction and utilization of boron. The support includes financial backing for rare earth projects in Australia and Brazil, with a particular focus on critical minerals such as boron.
Other raw materials for extracting Boron like Ulexite shows stable pricing environment during the first quarter of 2024. Seasonal factors played a role in price fluctuations, with the winter season leading to reduced demand from the construction sector. However, other industries, such as automotive and chemical manufacturing, continued to drive demand for Ulexite. In conclusion, the Boron pricing environment in the North America region, particularly in the USA, shows mixed trend during the first quarter of 2024. The market was influenced by various factors, including supply and demand dynamics, global economic conditions, and seasonal fluctuations. Overall, prices showed a slight increase, indicating a positive market sentiment.
Asia-Pacific
The Boron market in the APAC region during Q1 2024 witnessed various factors that influenced market prices. Overall, the market sentiment was somewhat bearish, with supply levels remaining stable to high and demand ranging from low to moderate. One significant factor impacting prices was the reduced demand from domestic and overseas downstream industries. This was particularly evident in the Chinese market, where the paint and coating sector faced a lack of demand due to decreased construction activity. The automotive sector also saw a decline in demand as global interest shifted towards electric and hybrid vehicles. Similarly, the paper and pulp industry and the glass manufacturing industries experienced modest declines in demand. On the supply side, there was a surplus in domestic warehouses, primarily due to reduced consumption and trade disruptions. Trade activity was affected by issues in the Panama Canal and disruptions in the Red Sea caused by Houthi Rebel attacks. However, the Turkish market saw an increase in mining operations due to government support for green energy transition, leading to higher supply levels in the overseas region. Turning our focus to India, the market experienced mixed trends. While some metal products showcased significant improvement, others did not show much growth. The demand from the domestic downstream industry was moderate to high, particularly in sectors like infrastructure and electric vehicles. However, the overall pricing trend was influenced by factors such as reduced trade activity, low international orders, and global oversupply. In terms of seasonality, prices are expected to incline in the Indian market during the peak summer season, as demand stabilizes. However, prices may start to ease down as the summer progresses.
Europe
The Boron market in Europe during Q1 2024 experienced a challenging pricing environment, characterized by a decline in prices. The market was influenced by several significant factors that impacted pricing trends. These factors include a reduction in demand from downstream industries, an increase in inventory levels, and disruptions in trade activities. Both Turkey and Spain witnessed a decrease in prices. In Turkey, an oversupply situation and weak demand from downstream industries led to a decline in prices. The market was further impacted by disruptions in trade activities, such as attacks in the Red Sea and the drought in the Panama Canal. Similarly, in Spain, a decrease in demand and an increase in inventory levels resulted in lower prices. The severe winter conditions in both countries also contributed to a slowdown in demand from the construction and automotive sectors. Overall, the pricing environment for Boron in Europe during Q1 2024 was bearish, with high supply and low demand. There was a notable decline in prices compared to the same quarter last year. Additionally, there was a decrease in prices compared to the previous quarter in 2024. In conclusion, the Boron market in Europe during Q1 2024 faced challenges due to reduced demand and increased supply. The pricing environment was negative, with prices declining throughout the quarter.
For the Quarter Ending December 2023
North America
In the last quarter of 2023, the North American Boron market demonstrated a steady performance, influenced by several key factors affecting pricing dynamics. To begin with, in October, Boron prices in the US spot market experienced a decline attributed to reduced demand from the glass industry, which was linked to a slowdown in construction activities and economic uncertainties. The plastic industry surpassed the growth of the glass sector, resulting in a 1.8% decline in revenue for domestic glass industries over five years. The closure of furnaces by Owens-Illinois further impacted warehouse supplies.
Moving into November, prices saw an uptick due to constrained supply and increased demand from paint coating and fertilizer sectors, driven by restricted imports and disruptions in the Panama Canal route. December witnessed a consistent pricing trend influenced by reduced demand during the winter season and disruptions in trade routes, including the Panama Canal and the Red Sea, attributed to drought and rebel attacks.
Adverse weather conditions led to a decrease in demand from the downstream construction sector, while there was sustained demand from paint, coating, and glass manufacturing, contributing to stable prices. The global economic instability and cautious buying behavior also played a role in maintaining a stable Boron price trend in the US spot market.
Asia-Pacific
The fourth quarter of 2023 saw a declining price trend in the APAC region's Boron market. The market was influenced by several key factors. Firstly, in October, the cost of Boron in the Indian spot market increased due to heightened demand from the paint, coating, and glass manufacturing industries. The rising demand in the glass sector was driven by the potential establishment of India's first gorilla glass manufacturing facility through a joint venture between Optiemus and Corning Inc. However, in November, Boron prices experienced a decline as demand decreased locally and globally. Increased production in Indian mills led to higher inventory levels, while disruptions in the Panama Canal and trade issues in the Red Sea negatively impacted export activities. Economic uncertainties, decreasing raw material prices, and the approaching winter and holiday season prompted buyers to adopt a cautious stance, reducing large orders. The oversupply in the Indian spot market persisted due to decreased consumption, trade disruptions, and adverse winter conditions, affecting downstream construction, automotive, paper, pulp, and glass manufacturing industries. Consumer concerns about rebel attacks in the Red Sea further contributed to a subtle decline in various sectors of the Indian market. The price of Natural Boron Ore CFR JNPT in India at the end of the quarter stood at USD 568/MT.
Europe
In the fourth quarter of 2023, the European Boron market experienced a notable decline in prices and market dynamics. Firstly, The Boron market in Spain is facing challenges with declining prices attributed to weakened demand from domestic and international downstream industries. Construction activity remained stable in October, but the glass industry slowed down due to market instability caused by federal interest rate hikes. The Glass Alliance Europe's commitment to EU decarbonization raised hopes for increased Boron consumption in Spain. In November, Boron prices further declined as demand decreased from both local and overseas industries. Increased production in Spain contributed to higher inventory levels. Economic uncertainties, falling raw material prices, and the approaching winter and holiday season led buyers to adopt a cautious stance, refraining from large orders. Surplus supply resulted from reduced consumption by local and international industries. Disruptions in Red Sea trade and attacks by the Houthi Rebel group affected export activities and increased freight costs. Severe winter conditions in Spain, coupled with global shifts towards electric vehicles, contributed to a modest decline in downstream sectors, including automotive, paper and pulp, paint, and glass manufacturing industries in the Spanish market. Consumer concerns about rebel attacks in the Red Sea further dampened order placements. The quarter ended with the latest price of USD 545/MT of Natural Boron Ore FOB Barcelona in Spain.
For the Quarter Ending September 2023
North America
Boron prices in the US spot market were reduced in the third quarter due to several factors. The US government's efforts to improve boron mining efficiency, combined with global demand growth in electronics, clean energy, aviation, and nuclear industries, have led to increased prices. Local mills raised bid prices due to heightened buyer interest, particularly during winter when weather affected mining operations. Both local and foreign processing industries increased their demand, with boron mining by-products being used in cement production. However, overseas demand and rising energy costs caused domestic boron ore prices to drop. Overseas nations aimed to enhance boron extraction for defense-grade materials, driving global demand. Overseas mills in Spain raised prices due to high consumption and lower inventory levels, but prices dipped later in Q3 due to cheaper imports. Spain faced economic and political challenges, though optimism for future activity remained. Turkey and Saudi Arabia signed an MoU to increase boron supply. However, the international market saw decreased downstream demand due to higher inventory levels and the end of the summer season, affecting tourism and service sectors.
Asia-Pacific
Boron prices in the Indian spot market have experienced mixed sentiments in Q3 due to several factors. The Indian government's efforts to enhance boron mining efficiency for defense purposes, coupled with global demand growth in electronics, clean energy, aviation, and nuclear industries, have driven this rise. Local mills raised their bid prices to meet heightened buyer interest, especially during the winter when mining operations were hampered by weather conditions. Both local and foreign processing industries increased their demand, with boron mining by-products finding use in cement production. However, overseas demand and rising energy costs led to a drop in domestic boron ore prices. The demand from downstream sectors such as paint, coatings, and construction, fueled by growth in the Chinese automotive and construction industries, saw significant increases. Although supply remained somewhat higher due to large foreign orders and rising mining rates in India, factories started offering discounts to attract buyers. The price of boron continued to surge in September, driven by demand from the glass manufacturing sector and India's first gorilla glass facility. The paint industry also contributed to this demand spike, and supply remained constrained due to static production and imports.
Europe
The price of boron in the Spanish spot market has been on a declining trend in Q3 due to the surplus supply amidst government policies aimed at boosting the boron mining sector. Overseas manufacturing nations are also looking to enhance their boron extraction processes for defense-grade materials, increasing global demand. Boron, once primarily used in electronics, is now essential in defense, clean energy, aerospace, and nuclear sectors. The Spanish spot market experienced a surge in consumption, prompting local mills to raise their prices. Lower inventory levels resulted from high demand, alongside extraction challenges due to scorching weather. In mid-Q3, boron prices further dipped due to increased cheaper imports. The market faced challenges from a mixed economic and political environment in Spain, but optimism for future activity prevailed. Turkey and Saudi Arabia signed an MoU for critical minerals, increasing the supply of boron. However, downstream demand in Spain decreased due to higher inventory levels and the end of the summer season, affecting the tourism and service sectors.
For the Quarter Ending June 2023
North America
The price of Boron in the USA has also been declining in the second quarter of 2023 due to the declining economic conditions in the US spot market after the downfall of major banks in the USA. The rising inflation rate provoked the buyers to delay placing large orders from the local and overseas markets. The local inventory level remained on a higher edge as the overseas mines from Asian and South African countries were on a higher rate. Various new deals signed by the Australian government implied the mounting extraction rate. Meanwhile, the recent trade war between the USA and China has led to uncertainty in the global market. In addition, the rise of alternative materials, such as graphene, which are being used in some applications where Boron was previously used. The declining price of Boron is having a negative impact on US producers. Some producers have been forced to cut production amid weak downstream demand to maintain the wide supply-demand gap.
Asia Pacific
The price of Boron in India has shown a mixed market trend in the second quarter of 2023. The price of Boron initially remained weak, and by the quarter ending in June, it inched up as the demand got high. The downstream Glass and fiber industry showed a declining trend from the overseas market as the economic conditions declined across the US and European markets. Increased supply from new mines in China. Meanwhile, the consumption rate declined as the weak demand from the electronics and glass industries affected the Boron market. The buyers were hesitant to place large orders as the uncertain market condition provoked them to delay in placing orders. This resulted in a high inventory level of Boron as the extraction rate was also on a higher edge. As a result of the declining price of Boron, Indian producers are facing financial difficulties. Some producers have been forced to close their mines, while others have had to lay off workers. As a ripple effect, the discussion of Natural Boron Ore for CFR JNPT (India) settled at USD 613/MT.
Europe
The price of Boron in Germany has also been declining in the second quarter of 2023. This is due to the factors such as macroeconomic factors implying the shifting of the German economy toward recession. The strengthening of the euro made boron exports from Germany more expensive that led to decline in the consumption rate. The closure of a major boron mine in Germany amid sluggish market sentiments led to declining price trend of Boron. The declining price of Boron is having a negative impact on German producers and implying a downward pressure on local mills. Some producers have been forced to cut production, while others have had to file for bankruptcy. The declining price of Boron is a global trend that is having a significant impact on producers in Germany. The rising energy cost and increased inflation rate was the cause that provoked the Boron mills to lower their offer price. The factors that are driving the decline in price are likely to continue soon, which means that producers will need to find ways to adapt to the new market conditions.
