For the Quarter Ending September 2024
North America
Throughout this quarter, the North American Iron Oxide market experienced a steady decline in prices, driven by multiple factors. High supply levels played a key role in the price drop, as an excess of Iron Oxide in the market led to price depreciation. Hurricanes and labor disputes further disrupted supply chains, exacerbating the bearish market sentiment.
Additionally, demand from key downstream industries, particularly construction and paints, remained subdued, intensifying the downward pressure on prices. The overall market environment in the region was characterized by a challenging balance between weak demand and ample supply, which contributed to a sustained negative pricing trajectory.
In the USA, the most significant price shifts occurred, with prices decreasing by 6% compared to the previous quarter. The interplay between supply chain disruptions, muted demand, and falling prices was a consistent theme throughout the quarter. Seasonal factors, alongside external challenges such as labor strikes and weather-related disruptions, further intensified pricing pressures. By the end of the quarter, Iron Oxide prices CFR Houston reflected a 6.4% decrease, highlighting the difficult market conditions. The quarter was marked by significant disruptions, leaving industry participants grappling with uncertainties and adverse market dynamics.
APAC
In the third quarter of 2024, the APAC Iron Oxide market faced significant challenges, marked by a 6% price decline compared to the previous quarter. Several factors contributed to this downturn, including weak demand from key downstream industries such as construction and coatings, along with persistent oversupply issues. The market also experienced disruptions due to adverse weather conditions, which compounded supply chain challenges. Port disruptions in major trading hubs further complicated logistics, leading to delays and intensifying market pressures. Indonesia saw the most pronounced price fluctuations, mirroring the broader regional trends. The correlation between seasonal factors, such as fluctuations in construction activities, and price movements was particularly evident during this period. Despite occasional signs of stabilization, the overall pricing environment remained bearish throughout the quarter, with Iron Oxide prices in Indonesia ending on a negative note. By the close of Q3 2024, Iron Oxide CFR Jakarta's price had decreased by 6%, reflecting the tough market conditions. This consistent price drop underscored the prevailing negative sentiment and the broader market struggles within the region.
Europe
In Q3 2024, the European Iron Oxide market experienced a fluctuating pricing trend, with prices mostly depreciating throughout the quarter before rebounding slightly in its final month. Germany saw the most significant price changes during this period. The price downturn was largely driven by weakened demand from downstream sectors such as construction and paints, which faced economic uncertainties and reduced overseas demand. Supply consistently outpaced demand, further pressuring prices, while industrial activity showed signs of contraction. Port congestion exacerbated supply chain issues, contributing to market instability. The Eurozone's construction industry also struggled, dampening product demand and fueling overall market uncertainty. By the end of the quarter, Iron Oxide prices had decreased by 5% compared to the previous quarter. However, in the last month of Q3, prices rebounded marginally, with a 0.8% increase in Iron Oxide FOB Hamburg. This uptick was primarily due to supply constraints, as limited product availability tightened the market. Despite this minor recovery, the overall trend during the quarter remained bearish, driven by sluggish demand from downstream industries and broader economic challenges across the region.
South America
In the third quarter of 2024, Iron Oxide prices in the South American region experienced a significant decline, driven by several key factors. The market saw decreasing prices primarily due to weak demand from downstream sectors, particularly the construction industry, coupled with challenging economic conditions. Brazil, in particular, recorded the most pronounced price fluctuations, reflecting broader market sentiment across the region. Disruptions caused by natural disasters, including Hurricane Beryl, compounded supply chain issues and further weakened demand. Global supply chain disruptions and port congestion also played a role in the downward trend. Seasonal factors, alongside global uncertainties, added additional pricing pressure. Throughout the quarter, the market consistently trended negatively, with prices dropping by 6% compared to the previous quarter. By the end of Q3 2024, Iron Oxide FOB Santos (Brazil) prices registered a quarter-end decrease of 3.4%, highlighting the prevailing negative pricing environment. Despite adequate supply levels, demand remained sluggish, leading to ongoing price depreciation. The correlation between subdued market dynamics, natural disruptions, and pricing trends underscored the difficult landscape faced by the Iron Oxide market in South America during the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the Iron Oxide market in North America experienced a pronounced downward trend in pricing. The quarter was characterized by a consistent decline in prices, driven by multiple factors affecting the market dynamics. The most significant factor was the persistent decrease in demand from downstream sectors, particularly in coatings, and paints, amid a broader economic deceleration. High interest rates, aimed at curbing inflation, curtailed spending on manufactured goods and capital projects, significantly reducing demand for Iron Oxide.
Additionally, the ease in the cost of imported materials from European and Asian markets, coupled with sufficient regional supplies, contributed to the pricing downturn. Supply chain issues, such as the shutdown of Baltimore's inner harbor and potential strikes by freight rail carriers CN and CPKC, added to the market's bearish sentiment, though these disruptions did not critically impact overall supply.
Focusing on the USA, the country saw the most significant price fluctuations, with an overall negative trend throughout the quarter. This can be attributed to weak demand from key industries and a slowdown in manufacturing activity. Seasonality played a role, with construction spending unexpectedly falling, influenced by rising mortgage rates and reduced investments in private and public construction projects. The quarter concluded with Iron Oxide prices at USD 1256/MT CFR Houston in the USA, highlighting a negative pricing environment in the region.
APAC
In Q2 2024, the Iron Oxide market in the APAC region experienced a pronounced downturn, driven by several pivotal factors that collectively exerted significant downward pressure on prices. The overarching sentiment of the quarter was decidedly negative as market dynamics were influenced by high inventory levels, sluggish demand from key downstream industries such as paints, coatings, and construction, and a persistent oversupply issue. These elements collectively created an environment where price growth was stifled, leading to a consistent decline in market value. The price trajectory showed a marked decline due to weak demand recovery in the construction sector, coupled with a notable slowdown in manufacturing output. Seasonality also played a role, with the summer season traditionally expected to boost construction activities failing to provide the anticipated demand surge. This was compounded by the persistent economic strain from the prolonged property sector crisis and reduced new and export orders, reflecting broader market weaknesses. The quarter culminated in a closing price of USD 1018/MT CFR Jakarta in Indonesia, a clear indicator of the negative pricing environment that dominated this period. Overall, the pricing environment for Iron Oxide in Q2 2024 remained decidedly negative, reflecting subdued market conditions and an overarching sentiment of economic pessimism.
Europe
The second quarter of 2024 has been challenging for the Iron Oxide market in Europe, characterized by a consistent downward trend in prices. Several significant factors influenced this decline, primarily subdued demand from critical downstream sectors such as paints, coatings, and construction. Economic challenges, including high financing costs and weak domestic market sentiment, further exacerbated the situation, limiting manufacturers' ability to adjust prices to offset production costs. Additionally, the anticipated economic recovery failed to materialize, contributing to the overall negative sentiment. Focusing on Germany, which experienced the most pronounced price changes, the market dynamics were notably influenced by ample inventory levels amidst tepid demand. Severe weather conditions, including torrential rains and flooding, disrupted supply chains, particularly along the River Rhine, although these factors were insufficient to counterbalance the prevailing weak demand. The quarter ended with Iron Oxide prices at USD 957/MT FOB Hamburg, underscoring a persistently negative pricing environment throughout Q2 2024. The overall outlook remains bleak, reflecting ongoing economic headwinds and subdued market demand.
South America
In the second quarter of 2024, the Iron Oxide market in South America experienced a significant decline in prices. This consistent downward trend was driven by various factors impacting market dynamics. The primary factor was a sustained decrease in demand from downstream sectors, such as coatings, construction, and paints, amid a broader economic slowdown. Further, high interest rates, implemented to curb inflation, reduced spending on manufactured goods and capital projects, significantly diminishing demand for Iron Oxide. Additionally, a decrease in demand from North America, combined with adequate regional supplies, contributed to the decline in prices. In Brazil, there were notable price fluctuations with an overall downward trend throughout the quarter. This was due to weak demand from key industries and a slowdown in manufacturing activity. Seasonality also played a role, with construction spending unexpectedly falling due to rising mortgage rates and reduced investments in both private and public construction projects. The quarter ended with Iron Oxide prices at USD 1122/MT FOB Santos in Brazil, reflecting a challenging pricing environment in the region.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Iron Oxide market in North America witnessed fluctuating prices, with the USA being particularly impacted. Overall, market sentiment leaned bearish, influenced by factors like weakened demand, heightened supply, and elevated inventory levels.
The market's dynamics were notably influenced by downstream industries such as paints, coatings, construction, and automotive, all experiencing subdued demand during the winter season. The region saw an abundance of Iron Oxide supply, leading to increased inventory levels, largely stemming from low demand and supply disruptions in the Red Sea and Panama Canal region. These disruptions resulted in stockpiling at regional ports, adding further downward pressure on prices.
Demand for Iron Oxide remained sluggish in the USA, partly due to severe weather conditions and the availability of competitively priced imported materials. Additionally, reduced demand from the automotive sector contributed to the overall decline in Iron Oxide prices. Analyzing the price trends, Iron Oxide prices in Q1 2024 experienced a notable decrease of 12.2% compared to the previous quarter. Prices dropped by 12% and 8% in January and February respectively, before stabilizing by the end of the quarter.
APAC
In the APAC region during Q1 2024, the Iron Oxide market witnessed a blend of trends, with notable price fluctuations largely shaped by developments in the Chinese market. The overall market sentiment was subject to a variety of factors, including disruptions in supply chains, seasonal shifts in demand, and alterations in material costs. Iron Oxide prices in the Asia-Pacific region experienced a decline in Q1 2024, primarily due to subdued demand from downstream industries like construction, paints, and coatings. Efforts by the country to revitalize its struggling real estate sector and bolster economic recovery contributed positively to the market sentiment. However, the presence of ample inventory and reduced costs of imported materials from European countries exerted downward pressure on prices, resulting in a decline from the preceding quarter. Demand for Iron Oxide remained lackluster in the APAC region, particularly in India and Indonesia, driven by subdued demand from downstream sectors. Seasonal factors such as winter and the Lunar New Year holidays further dampened demand in certain months. Analyzing price trends, there was a decrease in prices compared to the same quarter last year, reflecting the prevailing negative market sentiment. Consequently, the price of Iron Oxide in Indonesia saw a decline of 15% and 6% in January and February respectively, while remaining stable in March.
Europe
In the first quarter of 2024, the Iron Oxide market in Europe underwent notable price fluctuations, with Germany being influenced the most. The overall trend for Iron Oxide pricing throughout this quarter leaned towards negativity, with prices witnessing a depreciation of 2.6% in February and 10.4% in January. These declines were influenced by several factors, including a downturn in demand from downstream sectors like construction, paint, and coatings. Germany, in particular, confronted challenges within its construction industry, marked by a decrease in building activity and vulnerabilities in the housing segment. Furthermore, geopolitical tensions in the Middle East, disruptions in the supply chain, and transportation issues stemming from Houthi attacks in the Red Sea compounded market conditions, thereby influencing Iron Oxide prices. Assessing price changes on a quarterly basis revealed a significant decrease compared to the same quarter in the previous year. However, within the first quarter of 2024, there was a modest uptick in prices from January to February, followed by stability in March, indicating a degree of market recovery during this period.
South America
In the first quarter of 2024, the Iron Oxide market in South America encountered price fluctuations, with Brazil emerging as the highly impacted country. The prevailing market sentiment leaned towards bearish, primarily influenced by factors such as subdued demand, abundant supply, and competitive imported prices. Key downstream industries including paints, coatings, construction, and automotive experienced weakened demand, particularly during the winter season. The region witnessed a surplus supply of Iron Oxide, leading to elevated inventory levels, driven by a combination of low demand and disruptions in the supply chain within the Red Sea and Panama Canal regions. In Brazil, demand for Iron Oxide remained subdued, largely attributed to adverse weather conditions and the availability of competitively priced imported materials. The automotive sector, among others, also contributed to the overall decline in demand, thereby exerting downward pressure on Iron Oxide prices. Analyzing the price trends, Iron Oxide prices in Q1 2024 witnessed a significant decline compared to the previous quarter, with prices decreasing by 8% and 4% in January and February respectively, before stabilizing by the end of the quarter.
For the Quarter Ending December 2023
North America
The North American Iron Oxide market in the fourth quarter of 2023 experienced various factors that influenced prices and market conditions. Firstly, there was a balanced supply and demand situation, with ample product availability to meet the needs of the region.
The demand remained stable, showing no significant change despite market movements. However, the low demand from the domestic market resulted in moderate consumption levels. Additionally, expensive imports from Europe and Brazil contributed to price increases during this period. The price trend was influenced by the ongoing shortage in Europe, which led to expensive imports from Brazil.
The domestic demand in the USA remained low, particularly in the construction industry. The combination of these factors resulted in the price uptick observed. The quarter's ending price for Iron Oxide CFR Houston in the USA is USD 1686/MT. Overall, the North American Iron Oxide market in Q4 2023 had a balanced supply and stable demand, with prices being influenced by expensive imports and low domestic consumption. The USA experienced price increases due to the shortage in Europe and low demand in the domestic market.
APAC
Iron Oxide pricing in the APAC region during the fourth quarter of 2023 was influenced by several key factors. Firstly, supply was abundant in the market, leading to a competitive pricing environment. This was mainly due to weak demand from the downstream industries, such as construction and automotive, which were negatively impacted by the economic slowdown and adverse weather conditions. Additionally, the Chinese market, being the largest consumer of Iron Oxide in the region, experienced a decline in demand from the paints and coating sector, resulting in lower prices. The price comparison between the first and second half of the quarter showed a 2% increase. This can be attributed to factors such as improved demand and production activities in the construction sector, as well as the impact of year-end offer sales leading to the destocking of materials. In conclusion, the Iron Oxide market in the APAC region faced challenges during the fourth quarter of 2023 due to weak demand and ample supply. The Chinese market, in particular, experienced a decline in demand from the paints and coating sector. The price of Iron Oxide FOB Shanghai in China for the fourth quarter of 2023 was USD 1235/MT.
Europe
In the fourth quarter of 2023, the European market for Iron Oxide experienced an upward price trajectory. One of the key factors impacting the market was the persistent shortage of the product, leading to a sharp incline in prices. The low supply levels were primarily due to limited domestic demand and a moderate international market. German manufacturers, in particular, had to revise their prices for various commodities due to low margins. Additionally, the economic slowdown in the region and a decline in the construction industry further dampened the demand for Iron Oxide. Despite this, there was a slight improvement in demand from the domestic market, prompting the need to replenish the product. No plant shutdowns were reported during this period. The price of Iron Oxide in Germany at the end of the quarter stood at USD 1284/MT FOB Hamburg. This price increase can be attributed to the limited supply of the product in the market, both domestically and internationally, and the need to meet the marginal improvement in demand.
South America
The South American Iron Oxide market in the fourth quarter of 2023 experienced various factors that influenced market conditions and kept the prices moderately high. Initially, a balance existed between supply and demand, ensuring sufficient product availability in the region. Despite market movements, demand remained stable, showing no significant fluctuations. However, by the end of the quarter Iron Oxide traders experienced pressure on supplies to the USA due to a sharp increase in prices across Europe caused by a shortage of supplies. While regular buyers maintained stable demand, the scarcity of supplies in Europe led consumers to turn to Brazil for cargo, even though Brazilian materials were more expensive than German counterparts. The delivery time from Brazil became unacceptable due to supply shortages, prompting a notable price hike in the country, subsequently affecting prices in importing nations. In December 2023, the price of Iron Oxide in Brazil surged by 2.5% due to increased demand from the US. Concurrently, demand for the material remained firm in downstream construction, paints, and coating industries.
For the Quarter Ending September 2023
North America
Prices of Iron Oxide showed a mixed trend in the North American market with, largely observing a bearish situation, with prices declining by more than 4% in the first half of the third quarter followed by a slight appreciation in the month of approximately 1% in the month of September. The reason for depreciation in the prices was largely attributed to a sluggish demand from the downstream construction industry as economic conditions remained largely poor. Construction activities were largely halted as house prices soared throughout the third quarter of 2023 with current mortgage rates standing at approximately 8% for a 15-year fixed term. Moreover, inexpensive imports from Australia proved to be sufficient to cater to the existing demand. However, towards the end of the third quarter prices Iron Oxide showed a marginal improvement as backlogs from the construction industry continued to shrink and suppliers commenced purchasing activities albeit cautiously. Moreover, concerns about increasing inflation and production costs persisted with current inflation rates standing at 3.7% and PPI increasing by another 2% in September 2023.
APAC
Prices of Iron Oxide in the Asian market continued to witness a bearish situation in the third quarter of 2023, with prices of the product declining by almost by 10%. This was largely due to continuous disruptions in the weather which prompted most of the construction activities to halt. Both domestic and international demand continued to be sluggish as new home sales declined by almost 5% in the second quarter of 2023. Major construction firms have been reported to have filed for bankruptcy as demand from the downstream construction sector was marginal. Manufacturers anticipated that construction activities may strengthen in the Mid-Autumn festival, however that demand did not materialize as per anticipation, and the market remained oversupplied. Moreover, internationally, demand remained weak as the construction industry's performance was not sufficient to meet the expectations of current manufacturers. Overall, it is anticipated that the construction industry will likely remain subdued throughout 2023 as the construction sector largely weakens during peak winter.
Europe
Prices of Iron Oxide have shown a mixed trend in the European market, with prices of the product initially declining by almost 3% in the middle of the third quarter, then further appreciating by almost 6% towards the end of the third quarter of 2023. New orders declined, indicating diminishing demand from downstream construction activity. Builders largely chose to reduce scale back on employment and procurements of raw materials due to ongoing high interest rates. This conversely led to a pessimistic approach, and confidence amongst investors in the construction industry declined, which further negatively affected the market situation of the product. However, towards the end of the third quarter, Prices of Iron Oxide escalated by more than 6%, mainly due to a shortage of the product. This consequently led the manufacturers operating in the domestic range to adjust the pricing of the product due to its limited availability. Demand from the downstream construction industry also showed signs of revival as trading activities across the Eurozone commenced.
South America
Prices of Iron Oxide have declined by almost 6% in the South American market and continued to show a bearish situation throughout the third quarter of 2023. Demand of Iron Oxide from the downstream construction industry was low as energy prices and construction material costs surged. Increased mining activities and improving supply chain system consequently led to an oversupplied market as halting of construction industries prevented the consumption of the product. With international exports largely being low, current inventories were sold at discounted rates. The marginal demand for Iron oxide existed only from the paint industry, and that too limited procurements were made. The end of the third quarter saw purchasing activities contract for the fifth consecutive month. Moreover, offers of international exports were also low, particularly from the prime European Union and North American markets was also low as dull economy brought construction activities to a standstill. Moreover, prices of Iron Oxide are likely to decline further as winter months approach.
For the Quarter Ending June 2023
North America
Prices of Iron oxide saw declination of over 19% in the North American market with the market situation being bearish throughout the second quarter of 2023. Demand from the downstream paint and coating industry was weak as construction activities were recorded to be muted with key market players reporting a decline in the sales of surface coating products. Uncertainties regarding the revival of the economy prevailed with energy costs reported to be rising in the second quarter and PMI depreciating by over 2 points in the second quarter. As a result of the depressing outlook of the purchasing activities largely muted, which further contributed to depreciation of the prices of the commodity. Reduced purchasing activities eventually led to the accumulation of excessive inventories in face of sluggish demand. Existing stocks had to be sold at negotiable prices and at reduced profit margins, thereby further depreciating the prices. The final cost of iron oxide at the termination of 2nd Quarter of 2023 was assessed to be at USD 1657/MT CFR Houston.
APAC
In the Asian market, prices of the iron oxide exhibited a bearish trend throughout the second quarter of 2023, with prices declining by more than 20%. Key market players have reported a decline of more than 26% in the profits as compared to the first quarter. Demand remained largely muted as the construction industry did not recover as anticipated. This also had a detrimental impact on the demand for downstream paint and coating and concrete industry. Construction activities largely slowed across the majority parts of Asia because of the ongoing monsoon season which further cast a negative sentiment on the procurement of the commodity, thereby further diminishing prices. Because of halted construction activities, large amounts of inventories have been reported to be stockpiled which had to be sold at discounted prices, thereby diminishing profit margins. The final cost of iron oxide at the termination of 2nd Quarter of 2023 was assessed to be at USD 1400/MT FOB Shanghai.
Europe
The European market witnessed a bearish trend for the prices of iron oxide with prices reported to have declined by more than 20%. Recessionary conditions prevailed over Europe, which diminished purchasing enthusiasm of suppliers along with sluggish recovery construction activities which was indicated by falling PMI to 40.8 at the end of the second quarter. Key market players have reported a decline in sales, with profits diminishing by over 14% as compared to the previous quarter. As a result of the weak recovery of the construction industry, demand for the paint and coating industry was also hampered. Fluctuation of the water levels of river Rhine brought substantial issues in the supply of commodity which had the potential of increasing prices, but that however was overshadowed by weak demand from the consumer end as the performance of real estate industry also being poor. Inflation rates were also high being recorded at 6.4% towards the end of second quarter of 2023 which furthered dampened demand from the construction industry in addition to poor international demand. Towards the end of the second quarter prices of iron oxide were assessed at USD 805/MT FOB Hamburg.
South America
In South America, prices of iron oxide showed a bearish trend throughout the second quarter of 2023 with prices diminishing by over 23%. Construction activities were largely low with key players reporting a decline in the sales of the commodity as compared to the previous quarter due to the depressing outlook of the economic conditions of the region. Demand from downstream construction and paint and coating industries were also reported to be weak. Additionally, fears of inflation climbing to over 4% and increment of energy costs prevented purchasing activities in the downstream industries. International and domestic demand remained weak due to poor performance of the construction and paints and pigment industry in the second quarter of 2023. Ample inventories were reported to exist in the region with no disruptions in the supply chain system. This, however, led to the accumulation of inventory in the face of diminished demand which had to be sold at negotiable prices thereby, further reducing the prices of the commodity. Prices of iron oxide were reported to be declining throughout the second quarter of 2023, before finally settling at a low of USD 1432/MT FOB Santos.
