For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Carbonyl Iron powder witnessed a persistent upward pricing trend, driven by a confluence of factors that significantly impacted market dynamics. Supply chain disruptions, including port congestion and logistical bottlenecks, coupled with heightened freight charges, were primary contributors to the price surge. The quarter saw notable disruptions stemming from plant shutdowns and geopolitical tensions that hindered the smooth flow of imports, thereby exacerbating supply constraints. Consequently, suppliers leveraged this supply shortage to command higher prices, resulting in elevated profit margins.
Focusing on the USA, which experienced the most pronounced price changes, the market for Carbonyl Iron reflected a robust escalation in prices. This was influenced by strong local demand from the nutraceutical and pharmaceutical sectors, compounded by limited domestic stock levels. The overall trend for the quarter was characterized by an increased demand amidst constrained supply, leading to a favorable pricing environment. Seasonality played a role, as the onset of the produce season further strained temperature-controlled freight capacities, pushing costs higher.
Price changes in the USA exhibited a 4% increase from the previous quarter in 2024. Concluding the quarter on a positive note, the price of Carbonyl Iron Powder 99.5% CFR New York stood at USD 7630/MT, reflecting a consistently bullish sentiment throughout Q2 2024. This environment underscores a positive pricing trajectory, driven by sustained demand and supply-side challenges.
Asia Pacific
In Q2 2024, the Carbonyl Iron market in the APAC region has seen a significant upward pricing trend. This quarter's pricing environment was characterized by a series of influential factors that collectively drove market prices higher. The primary reasons include robust demand from the nutraceutical and pharmaceutical industries, an uptick in global procurement activities, and persistent supply chain disruptions. Additionally, production constraints due to plant shutdowns, such as those at [specific plant names], exacerbated the supply shortages, thus further inflating prices.
Focusing exclusively on China, which experienced the most substantial price changes, the market dynamics were particularly bullish. Seasonal demand played a crucial role, with increased consumption during specific periods contributing to the overall positive sentiment. The correlation between sustained high demand and restricted supply led to noticeable price escalations. Compared to the same quarter last year, China saw a marked percentage increase in Carbonyl Iron prices, reflecting the heightened market activity and constrained inventories. The pricing trajectory from the previous quarter recorded a 4% increase, emphasizing the robust demand and limited supply that have shaped the market.
Concluding Q2 2024, the price of Carbonyl Iron Powder 99.5% FOB Qingdao in China settled at USD 7250/MT. This quarter has decisively been positive for the Carbonyl Iron market, driven by persistent demand pressures and supply limitations, culminating in a stable yet progressively increasing pricing environment.
Europe
In Q2 2023, the Carbonyl Iron powder market in Europe experienced a moderate upward trend, influenced by the global market dynamics and particularly by its major import source, China. While the European market didn't see as dramatic an increase as the APAC region would in the following year, it still felt the effects of growing global demand and supply chain issues.
European buyers faced gradually increasing prices for Carbonyl Iron powder imports from China during this quarter. The pharmaceutical and nutraceutical industries in Europe showed steady demand growth for Carbonyl Iron powder, contributing to the price increase. However, this was balanced by Europe's diversified supplier base and stringent regulatory environment, which helped to moderate price volatility. Also, Logistical challenges, combined with some production constraints in China, led to longer lead times and put upward pressure on prices for European importers.
The European market also saw increased interest in Carbonyl Iron powder for advanced materials and specialty applications, adding another layer of demand that supported the price trend. By the end of Q2 2023, the price of Carbonyl Iron Powder 99.5% for European buyers had increased, though not to the levels that would be seen in China in the following year.
