For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American region witnessed a notable surge in Copper Sulphate prices, driven by a combination of factors that shaped the market dynamics. Elevated demand from various sectors, particularly agriculture, played a pivotal role in pushing prices upwards. The tight supply situation, exacerbated by high import costs and constrained availability, further fueled the price escalation. Additionally, favorable weather conditions in key agricultural regions boosted crop production, leading to an increased need for agrochemicals like Copper Sulphate.
Specifically focusing on the USA, the market experienced significant price fluctuations, with a clear upward trend dominating the quarter. The correlation in price changes highlighted a strong positive momentum, indicating a bullish market sentiment. Seasonality and demand-supply dynamics contributed to the price surge, with prices showing a significant increase from the first half to the second half of the quarter.
The quarter concluded with Copper Sulphate (Granular) commanding a price of USD 2560/MT CFR Texas in the USA, marking a substantial rise, and underlining the overall positive pricing environment that prevailed throughout the quarter. However, prices remained stable when compared to the previous quarter.
APAC
In Q3 2024, the APAC region witnessed a significant surge in Copper Sulphate prices, driven by a confluence of factors. Heightened demand from various industries, particularly the agrochemical sector, played a pivotal role in pushing prices upwards. The agricultural focus on optimizing crop yields, combined with strong market sentiment, exacerbated the supply-demand imbalance, leading to lower inventory levels and escalating prices. China, being a key player in the market, experienced the most substantial price changes. Factors such as increased demand, tight supply conditions, and high-cost support from feedstock materials contributed to the price fluctuations. The overall trend for Copper Sulphate prices in China displayed a positive trajectory, with a notable correlation between demand, seasonality, and price variations. The recorded 2.3% increase from the previous quarter and a 7% price difference between the first and second half of the quarter underscored the market's upward momentum. The quarter ended with Copper Sulphate (Granular) priced at USD 2350/MT FOB-Qingdao in China, reflecting a consistently increasing pricing environment.
Europe
In Q3 2024, the European Copper Sulphate market saw an overall upward trend in prices during the last two months, following a decline in the first month of the quarter, with Belgium experiencing the most significant price shifts. Several factors drove this surge. High import prices, combined with reduced agricultural output in Europe, led to supply constraints and increased demand for Copper Sulphate. Unfavorable weather conditions, including insufficient rainfall and extreme heat, impacted crop yields, particularly for corn and wheat, pushing farmers to use more agrochemicals to protect their harvests. Additionally, rising prices in Asia, driven by high feedstock costs and strong demand from the agrochemical sector, further influenced the European market. Belgium, in particular, saw a sharp price increase in the second half of the quarter, ending with a price of USD 2530/MT of Copper Sulphate (Granular) CFR Antwerp. However, prices remained stable when compared to the previous quarter. Market sentiment remained positive throughout Q3, driven by supply constraints, strong demand, and external market pressures. Plant disruptions and shutdowns also worsened supply shortages, further contributing to the price escalation across the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American copper sulfate market experienced a consistent upward trend, driven by robust demand across various downstream sectors and increased import prices from key exporting regions. Heightened household activities, escalating requirements in water treatment applications, and a recovering automobile industry bolstered the paint and coatings sector. Global supply chain disruptions, including port congestion and geopolitical challenges, further pressured prices.
In the USA, the market saw substantial price changes due to strong domestic demand and robust procurement activities. Seasonal factors, such as increased summer activities, boosted demand for copper sulfate in water treatment and agriculture. Heightened economic activities and increased industrial output fueled the price surge. Compared to the previous quarter, which recorded a 2% increase, the second quarter saw a 4% rise in prices from the first to the second half, underlining persistent upward momentum.
The quarter concluded with a bullish market sentiment, reflecting a positive pricing environment. The latest quarter-ending price for copper sulfate (granular) CFR Texas stood at USD 2480/MT, demonstrating the sustained surge driven by both domestic and global factors. Despite challenges from plant shutdowns and logistical disruptions, the pricing environment in Q2 2024 was positive, with strong indications of continued demand growth and price resilience.
APAC
In Q2 2024, the copper sulphate market in the APAC region experienced a notable decrease in prices, driven primarily by several key factors. The overall market witnessed a subdued demand environment exacerbated by adverse weather conditions, leading to diminished consumption in critical downstream industries such as agriculture and construction. This seasonal softness, combined with an oversupply situation, placed considerable downward pressure on prices. Additionally, disruptions in the supply chain, including logistical challenges and plant shutdowns, further contributed to the negative pricing environment.
In China, the most significant price changes mirrored the broader regional sentiment. Persistent hot and dry weather reduced agricultural demand for copper sulphate, resulting in a 2% price decline between the first and second halves of the quarter.
From a year-over-year perspective, the price change reflected a discernible downward trend, highlighting the market's sensitivity to external disruptions and supply chain issues. Copper sulphate prices declined by 13% compared to Q2 2023. Despite efforts to stabilize the market, the overall sentiment remained bearish. Compared to the previous quarter of 2024, prices showed a marginal 2% uptick, indicative of transient supply chain adjustments rather than a robust market recovery.
Concluding the quarter, the price of copper sulphate (granular) FOB-Qingdao in China stood at USD 2150/MT, clearly indicating a negative pricing environment throughout Q2 2024.
Europe
In Q2 2024, the European copper sulfate market experienced a consistent decline in prices, driven by several key factors. A noticeable reduction in demand from downstream sectors such as agriculture and construction, coupled with market oversupply, exerted downward pressure on prices. Supply chain disruptions, including transport bottlenecks and periodic plant shutdowns, exacerbated the situation. Noteworthy disruptions included the temporary closure of major production facilities like the Dow Chemical plant, contributing to market instability. Additionally, the appreciation of the USD against the Euro increased import costs, although weak demand overshadowed this inflationary pressure.
In Belgium, which witnessed the most significant price changes, a clear trend of declining prices was observed. Seasonality played a role, as the typical peak in water treatment demand during the summer did not materialize sufficiently to counterbalance the market glut. The price changes throughout the quarter depicted a downward trajectory, reflecting broader continental trends. Compared to the previous quarter, prices in Belgium saw a 2% reduction, further highlighting the bearish market sentiment.
Year-over-year, copper sulfate prices declined by 14% compared to Q2 2023, underscoring the market's sensitivity to external disruptions and supply chain issues. Ending the quarter, the price of copper sulfate (granular) CFR Antwerp in Belgium stood at USD 2380/MT, capping off a quarter characterized by a predominantly negative pricing environment. This decline reflects broader market dynamics and the challenges faced by the industry during this period.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American Copper Sulphate market faced notable challenges, witnessing persistent price declines. Multiple factors contributed to this downturn. Primarily, an oversupply of Copper Sulphate inundated the market, resulting in excess inventory levels. Additionally, the strength of the US dollar exerted downward pressure on prices. Meanwhile, the demand from agriculture industry amidst off season lull and limited consumption.
In the United States, Copper Sulphate prices experienced a 15% decline compared to the same quarter last year, continuing the negative trend from the previous quarter with a further 7% decrease. Price comparisons between the first and second halves of the quarter also revealed a 7% decrease.
Throughout the quarter, the pricing environment for Copper Sulphate in North America remained consistently negative, driven by factors such as oversupply, currency strength, and market uncertainty. The quarter-ending price for Copper Sulphate (CuSO4•5H2O, 25% Cu) FOB USGC in the USA was recorded at USD 2435/MT, reflecting the prevailing downward price trend.
APAC
The pricing environment for Copper Sulphate in the APAC region during Q1 2024 has been relatively stable, with some fluctuations observed in different countries. In India, which experienced the maximum price changes, the market showed a mix of bullish and bearish trends.
In January, the price of Copper Sulphate in India increased by 5.6% compared to the previous month. This was driven by heightened demand from the construction and pharmaceutical sectors. The housing market in India reached record levels in 2023, and this positive trend continued into 2024, contributing to the increased demand for Copper Sulphate. Additionally, the pharmaceutical industry saw robust growth, further driving up the consumption of Copper Sulphate.
However, in February and March, the market sentiment turned bearish, leading to a 5.1% decrease in prices. This was primarily due to subdued demand and oversupply in regional markets, coupled with a decrease in import prices from the international market. The agrochemical sector also remained subdued due to dry winters, further impacting the demand for Copper Sulphate. Despite a gradual improvement in demand from the downstream water treatment markets, overall demand remained low.
Europe
During Q1 2024, the European Copper Sulphate market encountered significant hurdles, marked by continual price declines. Several factors contributed to this downturn, notably an oversupply of Copper Sulphate, leading to an excess of stockpiled inventory. In Q1 2024, the European Copper Sulphate market witnessed a varied pricing landscape. Overall, prices experienced a modest uptick compared to the same period last year, albeit with a slight dip from the preceding quarter in 2024. Notably, the Netherlands observed the most significant price shifts, registering a 2% increase from the previous quarter. Demand-wise, there was moderate to high demand for Copper Sulphate driven by pre-season fertilizer purchases for spring planting and heightened usage in specialized industrial and greenhouse farming sectors. However, the market experienced demand slowdowns during the off-season.
For the Quarter Ending December 2023
North America
In North America, Copper Sulphate demand remains steady, driven by agriculture, water treatment, and industrial uses, with sectors like construction and infrastructure susceptible to fluctuations based on ongoing projects and economic conditions.
The prices of Copper Sulphate have remained firm in the US throughout the Q4 2023. While North American production capacity meets demand and global supply remains balanced, regional logistical challenges or unexpected production halts could disrupt supply temporarily, impacting prices.
The volatile price of copper metal, a key ingredient, affects production costs, potentially leading to upward adjustments in Copper Sulphate prices if volatility persists. Additionally, evolving environmental regulations concerning copper compounds may increase production costs in the long term, possibly resulting in price adjustments across North America.
Asia Pacific
In Q4 2023, the Asia Pacific Copper Sulphate market experienced dynamic pricing trends. Initially, prices rose due to robust regional demand and increased Copper feedstock costs. However, the pricing landscape later diverged across the region. China saw prices decline due to weakened demand, high inventory levels, and government interventions, while India maintained stability due to consistent demand and improved feedstock costs. Thus, after the conclusion of Q4 2023, Copper Sulphate prices in India were assessed at USD per MT 2548 per MT Ex-Mumbai. Southeast Asia experienced volatile price movements influenced by fluctuations in local demand and import dynamics. There were significant regional differences, with China witnessing a price decline, India remaining bullish, and Southeast Asia displaying fluctuating prices driven by local demand and import dynamics. Copper, feedstock costs played a crucial role, with global moderation in Q4 but ongoing regional disparities, copper prices show bullishness for the majority of Q4 2023. However, divergent trends emerged later in the quarter, especially in China, where ample inventory towards Q4's end led to price decreases. Trade dynamics also influenced the market, benefiting India with cheaper imports while impacting Southeast Asian markets with global price fluctuations.
Europe
Demand for Copper Sulphate in Europe is steady, mainly fuelled by its applications in agriculture, water treatment, and various industries. However, sectors like construction may see fluctuations depending on ongoing projects. Despite this, the overall European production capacity meets demand adequately, maintaining a balanced global supply that prevents significant price hikes due to shortages. Nonetheless, regional logistical issues or unexpected production halts could briefly disrupt supply and affect prices. The cost of copper metal, a vital ingredient in Copper Sulphate production, has been volatile recently, impacting production expenses. Meanwhile, the prices have remained on the rise throughout the quarter on the back of rising production cost and ample demand from downstream industries.
For the Quarter Ending September 2023
North America
In the domestic market of the USA, Average consumption by the downstream Agrochemical sector has led to a bearish sentiment for Copper Sulphate. Manufacturing firms have faced pressure due to subdued demand in the terminal market, and there has been an ample supply of Copper Sulphate to fulfill the inquiries of the downstream Agrochemical industries.
Moreover, data from the US Bureau of Labor Statistics has revealed that the annual inflation rate in the US has risen to 3.7% in August, up from 3.2% in July, primarily driven by higher energy prices. This uptick in inflationary pressures has negatively affected the buying sentiments of end-use industries.
Furthermore, around the middle of the third quarter, prices for upstream Sulphuric Acid commenced an upward trajectory, increasing the manufacturing costs of Copper Sulphate. As per the insights shared by market participants, inquiries have remained active from domestic downstream agrochemical firms due to heightened planting activities in the country. In the South American region, crop cultivation activities in the agriculture sector have seen an increase as the market payers were willing to restock before the planting and sowing season, which has boosted the demand for Copper Sulphate towards the end of the third quarter in 2023.
APAC
In the domestic market of India, the prices of Copper Sulphate have demonstrated mixed market sentiments. In early Q3, the prices of Copper Sulphate declined owing to high supplies in the domestic market. Strong manufacturing activities in India over the past six months led to an accumulation of Copper Sulphate stocks. To address this situation and increase shipments, manufacturers have opted to modify their pricing strategies and keep the prices at lower levels. Additionally, the demand from downstream sectors like construction and agrochemical industries has been inadequate, as manufacturers in these sectors have optimum inventory levels. The Ministry of Chemicals and Fertilizers in India has stated that the country currently holds over 150 lakh tonnes of fertilizers in stock, fulfilling the agricultural needs of farmers across India. In terms of production, manufacturing firms have operated at regular rates to meet the demand from the end-use industries. In September., The availability of Copper Sulphate was sufficient to meet the downstream demand. The pace of inquiries originating from the downstream agrochemical industries was average. Consequently, Copper Sulphate (Granular) Ex-Mumbai prices were settled at INR 181360 per ton in Q3-end.
Europe
In the German market, Copper Sulphate prices have shown mixed sentiments. Early in Q3, prices weakened due to reduced demand from the Agrochemical sector and lowered manufacturing costs caused by declining Sulphuric Acid prices. The demand from the construction sector was also inadequate to strengthen the pricing dynamics of Copper Sulphate. On the supply side, the higher levels of Copper Sulphate stocks have increased the supply-side pressure in the domestic region. Furthermore, Mid-Q3, the holiday season in Europe led to reduced production and limited availability of upstream Sulphuric Acid to meet downstream demand. In addition, Throughout Q3 2023, the Manufacturing Purchasing Manager Index remained in contraction. In September, Copper prices decreased due to lower upstream Sulphuric Acid prices and reduced energy costs, keeping market sentiment sluggish. On the energy front, Europe's storage reached 90.1% capacity, ensuring sufficient availability for downstream production. Additionally, the increasing interest rates and strict monetary policies in the German market have negatively impacted the demand dynamics for Copper Sulphate Alcohol among manufacturers in September.
For the Quarter Ending June 2023
North America
The average consumption from the downstream agrochemical industries has weakened the market sentiments for Copper Sulphate in the US market. On the upstream front, the cost support from Sulphuric Acid was also insufficient as its prices have remained on the lower end on the back of sluggish procurement from the end-use industries. The sudden collapse of Silicon Valley Bank and then Signature Bank in late Q1 has raised the threat of a banking crisis, which has impacted the US market on a broader level. In terms of production, the manufacturing units were operating at a reduced rate amid limited offtakes from the downstream Agrochemical industries. As a result, the manufacturing Purchasing Manager Index settled in the contraction zone in Q2. The declining freight charges and a slowdown in demand from the downstream agrochemical market have prompted the manufacturers to reduce their offers to stimulate new shipments. The availability of input energy materials was also sufficient to meet the demand from the downstream manufacturing firms. Moreover, the market concerns have been further exacerbated by an additional interest rate hike by the Federal Reserve to combat persistent high inflation in Q2-end.
APAC
In the Indian domestic market, the prices of Copper Sulphate have demonstrated mixed market sentiments in the second quarter of 2023. In early Q1, the prices declined amid ample availability of the product brought on by resilient manufacturing activities in the nation. The declining costs of upstream Sulphuric Acid and limited inquiries from the downstream agrochemical sector have led to bearish market sentiments for Copper Sulphate. The downstream manufacturers have reported a build-up of stocks that have been resisting the development in the demand dynamics of Copper Sulphate. As a result of increased supply-side pressure, the manufacturers have reduced their offers for the downstream agrochemical sector. However, in mid-Q2, the prices of Copper Sulphate improved due to a rise in inquiries from the downstream markets. Additionally, India's retail inflation decreased to 4.25 percent in May from 4.7% in April, according to data from the Ministry of Statistics and Programme Implementation. In addition, the freight charges across Asia's major trade routes have been decelerated amid a slowdown in global trade volumes. In June, the Logistics Performace Index report 2023 by the World Bank stated that container turnaround time in India is around 0.9 days, lower than Germany, the USA, and South Africa.
Europe
Throughout the second quarter of 2023, the prices of Copper Sulphate have remained under pressure in the German market. The declining costs of upstream Sulphuric Acid have prompted the manufacturing costs of Copper Sulphate to settle lower. On the input energy front, mild winter and low procurement from the manufacturing firms have caused a significant reduction in Natural Gas costs. In addition, the demand from the downstream agrochemical industries was also insufficient to cause a major shift in the pricing dynamics of Copper Sulphate. The largest economy in Europe, Germany, has been battling with high inflation, sapping the demand from the downstream Agrochemicals market. The successive interest rate hikes by the European Central Bank have limited the purchasing power of the terminal market. Furthermore, The market players have reported that because of Germany's higher inflation rate, the value of the euro has decreased, resulting in a lower exchange rate when compared to the dollar. Overall, the Copper Sulphate market has operated at a low level with weak cost support from upstream Sulphuric Acid, inadequate downstream demand, and low container rates.
For the Quarter Ending March 2023
North America
In the US market, the prices of Copper Sulphate have demonstrated mixed market sentiments. Average demand from the downstream agrochemical industries has pressured the market fundamentals of Copper Sulphate at the start of the first quarter.of 2023 The cost support from upstream Sulphuric Acid was insufficient and did not strengthen the Copper Sulphate costs. The inflationary pressure and tight labor market have exacerbated the price concerns for the market players. The trade activities have weakened, and the prices have inched lower in mid-Q1. Furthermore, the failure of two banks based in the USA has fumed the market downturn. Overall, in late Q1, the operating rate of manufacturing firms was regular, and the flow of finished goods was unimpeded.
APAC
Throughout the first quarter of 2023, the prices of Copper Sulphate have sustained their upward trajectory in the Indian domestic market. The manufacturing activities have remained resilient owing to improved demand fundamentals from the downstream industries. The production facilities were also running at their regular rates to maintain sales-to -inventories ratio. Due to the absence of any supply-chain bottlenecks within the time frame specified, finished goods have been actively moved. The freight charges have also decreased across Asia’s major trade routes amid the global economic slowdown. On the upstream front, the cost support from Sulphuric Acid was inadequate. Consequently, Copper Sulphate (Granular) Ex- Mumbai prices were settled at INR 209500 per ton in March.
Europe
Rising inflationary pressure and sluggish procurement from the downstream agrochemical industries in early Q1 have led to a decrement in the market value of Copper Sulphate in the German market. The declining costs of upstream Sulphuric Acid have further prompted the downward pressure on the price realizations of Copper Sulphate. Although, the production costs have decreased owing to an ease in input cost inflation amid a mild winter and sufficient availability of TTF natural gas. However, in order to combat inflation, the European Central Bank has tightened its monetary policy and decreased its interest rates. Thus, the Copper Sulphate market operated at low levels at the end of the first quarter.
For the Quarter Ending December 2022
North America
In Q4 2022, the prices of Copper Sulphate plunged in the North American market with a wide range of downstream fertilizers to constrain a positive displacement in price realizations of the product. The supply of the Bulk chemicals was abundant, as quoted by the traders. The pressure on the supply chain had decreased, and there had been a regular movement of downstream fertilizer-based products. The procurement of the product was low due to weak demand from the agricultural market, and the export orders had grown softer in the domestic region. Due to lower consumption, the inventories had been rising, although deteriorating the market sentiments of the USA. There was more stockpiling of Copper Sulphate seen within the marketplace, which tended to be noticed.
India
The market prices of Copper Sulphate plummeted in the Asian market during the fourth quarter of 2023, with a fluctuation in the production cost of bulk Chemicals. The fall in procurement from downstream fertilizer and other end-use industries pulled down the prices of Copper Sulphate. The fluctuations in the global petrochemicals market eased down the costs of crude oil and have hampered a positive development in the price realizations of downstream products. Spot inventory prices of Copper Sulphate were at optimum levels impacting the price of the product in the regional market. The manufacturer’s shipments were average and did not contribute much to the market growth of Copper Sulphate. The prices of the product hovered at USD 2623.8/ton Crystalline Grade Ex-Mumbai in October as per ChemAnalyst Research Team Data.
Europe
During the last quarter of 2022, the market prices of Copper Sulphate decreased in the European market with the weakening of input raw material costs support from upstream Sulphuric Acid in the domestic region. An extended period of demand has hampered the market fundamentals of Copper Sulphate. The factory activity was weak, in addition to a reduction in export orders in the German market. An extended period of demand destruction had hampered the market fundamentals of Copper Sulphate. Adequate inventories of Copper Sulphate with the local suppliers complied with the weak downstream demand from the fertilizers industries, thus leading to stockpiling of the product.
For the Quarter Ending September 2022
North America
The domestic market of the USA has witnessed contracted Copper Sulphate prices in the third quarter of 2022. The decline in raw material costs and diminishing demand from the downstream agriculture sector have subdued the market sentiments toward Copper Sulphate. The low domestic demand from the fertilizers industries prevented manufacturers from raising Copper Sulphate, which has exerted pressure on their profit margins. Furthermore, on the upstream price front, Sulphuric Acid prices plummeted in the domestic region. The backlog of deliveries has prompted the traders to reduce the quotations. As a result of sluggish downstream demand, the spot prices of Copper Sulphate plunged in the third quarter.
Asia- Pacific
The prices of Copper Sulphate fluctuated in a narrow range in the first half of the third quarter. The adequate availability of the product in the domestic market has hampered the market growth of Copper Sulphate in the domestic region. The market players have reported that they have secured enough supplies of fertilizers to avoid any shortages for the planting season. Furthermore, towards the end of the third quarter, the reduction in upstream Sulphuric Acid costs amid the lower procurement from the end-use industries decreased the manufacturing costs of Copper Sulphate. The Cooper Sulphate prices fell by 3.7% on September month-to-month. In addition, the prices of energy materials have also oscillated amid the deterioration in the economic outlook. Consequently, Copper Sulphate (Granular) Ex- Mumbai prices were settled at USD 2547 per ton in Q3-end.
Europe
In the third quarter of 2022, the price trend of Copper Sulphate has demonstrated mixed market sentiments. The primary driver of the economic growth of Europe, Germany has been dependent on Russia for one-third of its natural gas requirement; the slashed energy supplies have pressurized the market sentiments of Copper Sulphate in Europe, pushing the manufacturing costs to soar. However, the profit margins of the manufacturing firms have contracted amid the suppressed agricultural and other industrial activities. Thus, factories have operated at limited capacities to maintain the equilibrium between supply and demand. However, the market players have reported that the demand from the downstream agriculture sector was relatively weak and did not strengthen the price dynamics of Copper Sulphate in Q3.
For the Quarter Ending June 2022
North America
The price trends of Copper Sulphate have remained buoyant since the start of the second quarter of 2022. The upstream Sulphuric Acid prices have substantially gained by more than 30% from Q1 on the backdrop of ongoing hostilities between European Nations and the Zero COVID policy imposed in China. The surge in upstream energy values amid global supply chain disruptions has also exerted equal pressure on the market values of Copper Sulphate in the domestic region. As a result of the bullish market sentiments, the manufacturers have uplifted their quotations. Furthermore, the robust demand from the downstream agricultural sector due to hindered black-sea port movement has further supported the augmented price trend of Copper Sulphate in the US market.
APAC
In the second quarter of 2022, the Copper Sulphate price offers have demonstrated a declining trend in the Asia-Pacific region. The halted production activities in China due to stringent COVID restrictions and dwindling Sulphuric Acid prices have supported the reduced market values of Copper Sulphate in the regional market. Furthermore, the disrupted supply-chain balance has resulted in stockpiling of the product, further deteriorating the demand outlook. In- addition, the lower offtakes from the downstream agricultural sector have also plummeted the demand outlook. As a ripple effect, towards the end of the second quarter, the Copper Sulphate prices witnessed a drop of nearly 2% as compared to the prices observed in Q1 end.
Europe
The market expansion of Copper Sulphate in the European region has mainly been attributed to the rising input costs. The ongoing hostilities between the European nations have severely impacted the global supply chain balance. In retaliation, Russia has limited the energy supplies to the major economy of Europe, Germany. The Curbed energy supplies have incited manufacturing costs, and as a result, a considerable hike in Manufactures quotations has been observed. On the upstream price front, the Sulphuric Acid price has demonstrated a significant surge by the double-digits figure at the end of the second quarter, which has supported the bullish market sentiments. Overall, the demand outlook from the downstream agricultural sector has remained stable.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, overall market sentiments observed a persistent upward trajectory for Copper Sulphate especially during the second half of the quarter in the North American market. The market price of Copper Sulphate showcased an upward growth on the back of soaring feedstocks and rising energy prices after the tensions erupted in the eastern European region. Moreover, Copper prices soared more than 8% in the first quarter coupled with the bullish trend in the quotations of the feedstock Sulphuric Acid in the USA. Thus, the soaring market price of feedstocks besides supply chain disruption affected the market of Copper Sulphate as the producers will to raise the offered quotations strengthened. Moreover, demand from the downstream agricultural sector was firm, but due to the unavailability of Copper Sulphate, supply-demand gap imbalanced and hampered the market sentiments.
Asia Pacific
In Asia, the Copper Sulphate market price showcased an upward surge since the declining trend of mid-December 2021. The Copper Sulphate has a stagnant demand from the downstream industries in India. Although, despite the inadequate demand from other sectors, the Indian authorities were keen to ensure raw material supplies ahead of the upcoming peak season for Fertilizers. Whereas the resurgence of COVID-19 and strict measures taken by the Chinese authorities to curb the spread caused logistics disturbance across China. During the spring festival holidays, the demand outlook observed significant gains amidst the seasonal peak for fertilizers in China. Despite that, the current market dynamics for Copper Sulphate staggered due to persistent rising prices of sulphur and enforced demand outlook in China. The price of Copper Sulphate (Granular & Crystalline) for Ex-Mumbai settled at USD 2899 per tonne and USD 2868 per tonne.
Europe
In Germany, market players claim that the Copper Sulphate market in Europe showcased an upward growth since the geopolitical tension between Eastern European Nations began. Furthermore, the sanction imposed over Russia amidst its invasion over Europe made the domestic players reluctant to procure the Russian cargoes from the black sea. Additionally, the soaring crude and energy prices forced domestic players to lean toward overseas deliveries. The demand for Copper Sulphate in the agricultural sector remained firm, although the player actively inquires amidst the upcoming peak season. Whereas the rise in prices of feedstocks Copper and Sulphur prevailed the cost support in the quotations of Copper Sulphate. Despite firm demand, rising feedstocks directly impacted the market price of Copper Sulphate.
For the Quarter Ending December 2021
North America
The energy transition towards a greener economy uplifted the Copper market in the North American region and kept the market sentiments for Copper Sulphate buoyed in the US domestic market and the supply outlook improved after the production level was restored after the hurricane season. Since the starting of the quarter, the copper market rebounded and provided adequate cost support to the Copper Sulphate owing to supply chain tightness. Whereas the demand outlook remains soared in the US domestic market. As a ripple effect, the US Copper Sulphate prices remained buoyed amidst the strong demand from the downstream agricultural, and pharmaceutical sectors.
Asia Pacific
The Copper Sulphate market in the Asia Pacific region observed a stagger uptrend throughout the fourth quarter of 2021. Whereas the sentiments in the Northeast Asian region soared drastically amidst the dull operational loads in China amidst the power rationing. However, the situation eased in the second half of the quarter. Whereas the resurgence of COVID and divergence of upstream due to energy transition interrupt the demand-supply outlook with a significant margin. As a ripple effect, the Ex-Mumbai discussion for Copper Sulphate granular settled at USD 3022 per tonne, during the quarter ending in December.
Europe
In the fourth quarter of 2021, the European Copper Sulphate market sentiments remained buoyed amidst the supply-demand imbalance. Whereas the operational loads remained uncertain amidst the ongoing energy crisis in Europe led to constrained supplies of Copper Sulphate in the domestic market. The resurgence of COVID supported the demand outlook in the European domestic market. Therefore, due to the supply-demand imbalance and constant inquiries, the Copper Sulphate quotations remained staggered upwards in the fourth quarter of 2021.
For the Quarter Ending September 2021
North America
In North America, an exponential rise in the prices of Copper Sulphate was witnessed backed by the robust demand from the end use industries including agriculture and pharmaceuticals. In US, high volatility in copper prices, resulted in the turmoil in Copper Sulphate prices where market participants were observed returning to the market to restock inventories. Lower production rates and hinderance in supply chains as an impact of Ida hurricane that made landfall in the Gulf Coast of the USA at the August end also influenced the prices of Copper Sulphate in this quarter. Hence, prices of Copper Sulphate were assessed at USD 2825-2980 per MT on DDP basis across the US during the quarter.
Asia
In Asia, Copper Sulphate market outlook appeared bullish due to the robust demand and tight fundamentals that kept the prices in the upward trend during Q3 2021. Furthermore, hike in the feedstock values also supported the pricing trend of Copper Sulphate in the region. In India, Copper Sulphate values escalated on the back of the rising global prices amid stable offtakes from the domestic market. Besides, ample enquiries for Copper Sulphate from fungicides sector and rising raw material cost also influenced the pricing trend. Therefore, Copper Sulphate values rose significantly and hovered around USD 2957.38/MT Ex-Hyderabad during September.
Europe
In the European market, Copper Sulphate prices experienced an upward trend during the third quarter of 2021 aided by the global upsurge in the values of feedstock as well as the sturdy demand from the downstream agrochemicals manufacturers. Moreover, low production rates due to the energy crisis as well as bottlenecks in transport capacities and delivery delays led to the significant rise in the prices of the Copper Sulphate and its downstream products during this quarter.
For the Quarter Ending June 2021
North America
Registering recovery from winter storm in February, agrochemical sector of USA adhered prominent demand in the latter half of April. Demand for Copper Sulphate rapidly increased amid supply shortage, taking momentum from improvement in farming activities in the country. Meanwhile, the demand for Copper Sulphate rose rapidly in the global market, supported by the steep rise in demand from agriculture sector. A major manufacturer, DuPont announced price hike by around 10% in May, due to the steep rise in demand amid lower inventory level due to halted production activities after February.
Asia
Asian countries experienced a fair spike in prices of Copper Sulphate, backed by sturdy demand fundamentals amidst shortage of feedstock. In India, a huge spike in prices of Copper Sulphate was observed during this quarter, supported by firm demand from domestic fungicides sector and global rise in price of its feedstock Copper Sulphite ores. While in China, a substantial rise in prices of metallic copper was observed, backed by huge demand from domestic market. The increment in feedstock prices, increased the production cost of Copper Sulphate across the region. Therefore, after gaining a decent value within the quarter, prices of Copper Sulphate reached USD 2950/MT in June for India.
Europe
Global rise in prices of Copper Sulphate during Q2 2021 due to the firm demand from the fungicides segment influenced the market fundamentals of the products in the European market. Despite of the fact that mining activities improved in comparison to last year, prices of copper ore rose in effect of rise in metallic Copper demand. In addition, logistical issues and rising production cost also affected the prices of Copper Sulphate across the region during this quarter.
For the Quarter Ending March 2021
North America
Demand for Copper Sulphate from domestic agriculture sector remained low due to unfavourable weather conditions. During February, all the farming activities followed by industrial activities snoozed under freezing winter, hence the regional demand plummeted during this timeframe. However, the demand from Europe remained strong but inadequate production weighed down the export potential of North American region. Some traders seemed reluctant to offer stocks at discounts due to market uncertainties still hovering over the industry.
Asia
Asian market showed strong sentiments for Copper Sulphate prices and demand, during Q1 2021. As Copper Sulphate widely used in making fungicides and microbial repellent, the strong demand was backed by the crop season Zaid during March. Sturdy demand resulted pushed up the prices from USD 1728/MT to USD 1742/MT in January-March timeframe in Indian market. In addition, Sagardeep Alloys commenced their trial operations to produce Copper Sulphate in India, which is expected to assist in improving the regional supply crisis in the long term.
Europe
Europe observed firm regional demand for Copper Sulphate from domestic pharma sector during this quarter. In addition, demand was also driven by the arrival of spring season. Traders remained optimistic about the good demand from domestic agriculture sector as well. However, supply activity remained halted due to lower mining activity after rapid surge in COVID 19 cases across the region. In addition, due to high freight cost and container shortages, traders restrained to import additional cargoes from Asia which considerably affected the domestic availability of Copper Sulphate.
For the Quarter Ending December 2020
North America
High prices of copper oxide and sulfuric acid and tight regional supply kept the Copper Sulphate prices high towards the end of the quarter. The supply of copper oxide and sulfuric acid was lower initially in the quarter due to dampened demand. A significant shift in the consumer behavior after the pandemic has given a boost to the regional CuSO4 demand from the healthcare sector. Active restocking by the agriculture sector further supported the price and demand curve.
Asia
Growing demand for copper sulphate and its salts in various economies especially from the agriculture and pharmaceutical sector propped up the copper sulphate offers in Q4. Uncertainty stemming from some consuming sectors kept the prices relatively pressured over Q4 2019. Rising price of cupric oxide and sulphuric acid also supported the price curve. With growing focus of major economies on agriculture and pharmaceutical industry, the demand of the product gained back the lost trend. To cater to growing product demand, a leading Indian producer was heard planning to expand its production capacity of Copper Sulphate in October. The price of copper sulphate was averaged around USD 1768 per MT in the Indian market.
Europe
Supply remained affected due to curtailed operations at some mines or normal production levels which had been pushed back due to operational restrictions amid surging COVID-19 cases. Increasing demand for Copper Sulphate from the pharmaceutical and agriculture sector contributed well to the product’s demand outlook during the quarter while the demand from the construction sector remained tepid. Rising demand from the pharmaceutical and agriculture industry and lack of overseas shipments kept the offers risen throughout December.
