For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American region saw a decline in Magnesium Chloride prices, with the most significant changes occurring in the USA. This downward trend was influenced by several factors, including an oversupply stemming from increased production capacity, lower demand due to a milder winter season, and a general saturation in the global market affecting pricing dynamics. Additionally, supply chain challenges such as shipping delays and labor shortages played a role in shaping market prices. Overall, the market sentiment remained bearish, characterized by moderate to high supply levels coupled with subdued demand, particularly from the agricultural and construction sectors.
In the United States, Magnesium Chloride prices decreased by 1% from the previous quarter, showing a notable 5% difference between the first and second halves of Q3. By the end of the quarter, prices were recorded at USD 577 per metric ton (MT) DEL New York. Disruptions from plant shutdowns further intensified pricing pressures, contributing to an environment marked by consistently negative sentiment. This situation was reflected in declining prices and ongoing uncertainty within the market.
The pricing landscape in the USA exhibited a persistent downward trend, driven by both excess supply and fluctuating demand. The combination of these factors created a challenging environment for manufacturers, who had to navigate through reduced demand from key sectors while managing the impacts of production disruptions. As a result, market conditions remained uncertain, compelling manufacturers to adjust their pricing strategies accordingly.
APAC
In the third quarter of 2024, the Asia-Pacific (APAC) region experienced a significant drop in Magnesium Chloride prices, with China seeing the most pronounced changes. This decline was primarily driven by an oversupply resulting from increased production capacities, coupled with weakened demand in critical sectors such as construction and agriculture. Additionally, logistical challenges contributed to a bearish market sentiment, leading to an overall price decrease of 6% compared to the previous quarter.
China's market faced difficulties due to earlier supply chain disruptions that resulted in a surplus of Magnesium Chloride. The quarter ended with prices at USD 103 per metric ton (MT) FOB Shanghai, reflecting a 10% decrease from the first half of the quarter. Despite some robust demand in specific regions and industries, the prevailing trend remained negative. Manufacturers were compelled to adjust their pricing strategies to cope with these challenging market conditions.
Furthermore, the quarter was marked by production disruptions due to unspecified plant shutdowns, which further influenced supply and pricing dynamics. These factors collectively shaped a market environment where manufacturers had to navigate through both excess supply and fluctuating demand, ultimately impacting their pricing decisions and market strategies.
Europe
In the third quarter of 2024, the European region experienced a significant decline in Magnesium Chloride prices, particularly in the Netherlands, which saw the most notable fluctuations. This downward trend was influenced by several factors, including increased production capacities across the region that resulted in a market surplus. Additionally, diminished demand from essential sectors like agriculture and construction, along with supply chain disruptions and rising input costs, contributed to the overall price decrease. The market also faced challenges from plant shutdowns in certain facilities, although no specific shutdowns were reported.
During this quarter, prices fell by 2% compared to the previous quarter, with a substantial 9% drop observed between the first and second halves of Q3. When compared to the same quarter last year, prices reflected a considerable decline. By the end of the quarter, the price of Magnesium Chloride FOB Rotterdam in the Netherlands was recorded at USD 480 per metric ton (MT), illustrating a negative pricing environment characterized by oversupply, weakened demand, and ongoing cost pressures.
The prevailing market conditions highlighted a bearish sentiment as manufacturers grappled with excess supply and reduced demand. This situation necessitated adjustments in pricing strategies as companies sought to navigate the challenging landscape. The overall dynamics of the market were influenced by these factors, leading to a cautious outlook for future pricing trends in the Magnesium Chloride sector.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Magnesium Chloride market experienced a significant upward trend in prices, driven by a confluence of factors. Heightened demand from the textile and chemical sectors was particularly notable, as these industries ramped up operations following a period of subdued activity. Additionally, the construction sector's seasonal requirements for building materials and dust suppressants contributed to the surge in demand. Supply chain constraints and logistical challenges, including disruptions in major transportation routes like the Mississippi River and the Panama Canal, further exacerbated the situation by limiting the availability of Magnesium Chloride, thus driving prices up.
In the USA specifically, these factors culminated in a marked increase in prices, reflecting the overall bullish market sentiment. The correlation between seasonal demand patterns and price changes was evident, with the quarter seeing a notable price rise from the first to the second half. This increase is further underscored by a 5% rise from the previous quarter. The manufacturing sector's optimism, as indicated by a rise in the U.S. Manufacturing PMI, also played a crucial role in bolstering demand and pushing prices higher.
While no plant shutdowns were reported, the market faced potential disruptions due to anticipated monsoon impacts. Despite these challenges, the pricing environment remained positive, culminating in a quarter-ending price of USD 620 per metric ton DEL New York. Overall, the second quarter of 2024 reflected a robust and growing demand for Magnesium Chloride, driven by strong industrial activities and constrained supply chains.
APAC
In Q2 2024, the Magnesium Chloride market in the APAC region experienced a notable upward trajectory in pricing, driven by several critical factors. This quarter was characterized by heightened demand from key downstream sectors, including textiles, chemicals, and construction. The robust demand was fuelled by the ramp-up in industrial activities post-pandemic, along with the seasonal uptick in construction projects, particularly those preparing for the winter season, which increased the need for de-icing agents. Additional supply chain constraints, such as logistical challenges and transportation bottlenecks, further compounded the upward pressure on prices. Despite stable production levels and adequate inventories, the market faced temporary disruptions due to unplanned maintenance shutdowns at key manufacturing plants, exacerbating supply limitations. Focusing on South Korea, the country exhibited the most significant price changes in the region, underscoring the bullish market sentiment. The overall trend was marked by consistent price increases, driven by robust demand from domestic industries and a resurgence in export activities to Southeast Asia and Japan. The seasonality effect was evident as the construction sector's peak season amplified the demand for Magnesium Chloride, pushing prices higher. The quarter recorded a 16% price increase from the first to the second half, reflecting strong market fundamentals and sustained demand. Concluding Q2 2024, the price of Magnesium Chloride FOB Busan stood at USD 165/MT, reflecting a positive pricing environment underpinned by strong demand and supply constraints. The quarter's dynamics highlight a robust and resilient market, despite occasional disruptions and operational challenges.
Europe
In Q2 2024, the European market for Magnesium Chloride has experienced a positive pricing environment, marked by a significant increase in prices. This upward trend was primarily fuelled by robust demand from downstream industries such as textiles, chemicals, and agriculture. Heightened industrial activity, coupled with seasonal preparation for the winter and planting seasons, further amplified demand. Supply chain constraints and logistical challenges, particularly during the monsoon season, added to the price surge by creating supply bottlenecks. These disruptions were exacerbated by the lingering impacts of the Houthi Red Sea crisis, which affected shipping schedules and increased transit times. Additionally, the stabilization of production levels at major manufacturing facilities helped mitigate more severe supply shortages. Italy, in particular, saw the most pronounced price changes in the region. The country’s market for Magnesium Chloride was buoyed by increased demand from the construction and fertilizer sectors. Seasonal activities, such as the planting season and preparations for winter de-icing, significantly contributed to this heightened demand. The Italian market also faced a decline in the Manufacturing Purchasing Managers’ Index (PMI), which reflects broader economic challenges, but did not significantly deter price increases. The overall trend in Q2 2024 showed a steady increase, with a notable rise from the previous quarter and a 13% price surge between the first and second halves of the quarter. These dynamics culminated in a quarter-ending price of USD 590/MT for Magnesium Chloride CFR Milan in Italy, underscoring a consistent and strong positive sentiment in the pricing environment throughout the quarter. The market’s resilience amidst logistical and supply challenges highlights the robust demand and strategic inventory management by key players in the sector.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Magnesium Chloride market experienced nuanced pricing dynamics, with a variety of influences impacting market trends, particularly in the USA. There, price fluctuations were notably more pronounced, with an initial upward trend in prices. This increase can be primarily attributed to strengthened demand from downstream industries such as construction and textiles, which initially drove prices up.
As the quarter progressed, however, the market saw a saturation of activity. This saturation occurred as customer needs were largely met, leading to a slowdown in trading activity. Additionally, rising energy prices contributed to an initial increase in production costs for Magnesium Chloride, further pushing prices upward at the beginning of the quarter. Despite these factors that might suggest a continued upward trend, the market ultimately exhibited a decline. This decline was influenced by reduced industrial production and manufacturing activities during the Christmas holidays, which not only decreased workforce availability but also led to a temporary spike in demand that could not be sustained.
By comparing the first quarter of 2024 to the same period in the previous year, it is evident that there was a notable decrease in prices. Factors such as plant shutdowns and weakened demand from downstream industries significantly impacted the pricing dynamics, leading to a reduction in prices. Ultimately, the closing price for Magnesium Chloride Delivered (DEL) to New York in the USA at the end of the first quarter was USD 570/MT. This final price indicates the downward trend observed throughout the quarter, despite the initial factors that suggested an increase. The fluctuating dynamics of the market showcase the complexity of factors that can influence pricing, from production costs and energy prices to industrial activity and market saturation.
APAC
In Q1 2024, the pricing dynamics of Magnesium Chloride in the APAC region were influenced by a variety of factors beyond the conventional top three. While the overall trend was a decline in prices, it is important to note the impact of plant shutdowns on pricing dynamics. The market situation in APAC, where price fluctuations were most pronounced, played a significant role in shaping the pricing dynamics. The market started the quarter on a bullish note, with prices increasing due to prolonged disruptions in the Red Sea region, impacting imports from Europe, and higher rates of feedstock hydrochloric acid. This led to a surge in prices and increased demand from downstream nutraceutical companies, construction, and textile industries. However, concerns about rising freight charges and a slower rate of expansion in the manufacturing PMI value compared to January slowed down the market. Overall, the pricing trend in Q1 2024 in South Korea was influenced by factors such as supply stability through domestic production and imports from China, reduced imports from Germany and Belgium, and increased demand from downstream industries. Additionally, in Q1 2024 the decline in prices was also driven by lower purchasing fundamentals from other Asian regions, lower feedstock prices for Magnesium, and weak demand from the construction market. The decline in prices was further compounded by reduced downstream industrial production during the Christmas holidays, resulting in a diminished workforce and lower demand. Comparing the prices in Q1 2024 to the same quarter last year, there was a decrease of -12.2% in prices. In terms of the comparison with the last quarter of 2023, prices decreased by -13.88%. It is important to note that these fluctuations were not observed monthly, but rather as an overall trend for the quarter. In conclusion, the final quarter's price for Magnesium Chloride FOB Busan in South Korea was USD 162/MT. The pricing dynamics in Q1 2024 were shaped by a diverse range of factors, including plant shutdowns, supply stability, demand from downstream industries, reduced imports, lower feedstock prices, and seasonal factors such as the Christmas holidays.
Europe
In Q1 2024, the European market for Magnesium Chloride, particularly in the Netherlands, exhibited mixed pricing dynamics with noticeable fluctuations. Despite an overall bullish market trend, the quarter unfolded with complexities that went beyond the typical major influences on pricing. The quarter commenced with moderate demand coupled with strong market sentiments, which initially drove prices upward. This incline in prices was supported by moderate inventory levels among end-users who maintained cautious procurement strategies, contributing to the upward trend in prices. The reduction in downstream industrial production and manufacturing activities during this period led to a diminished workforce, impacting the market's capacity to meet demand effectively and temporarily boosting prices. However, as the quarter advanced, there was an expectation of increased demand from downstream industries such as textiles and construction. Alongside this, the quarter also witnessed rising energy prices, which affected production costs. In response to these higher costs and to stimulate trade, sellers offered discounts, introducing a complex dynamic to the pricing trends. It is crucial to note that there were no plant shutdowns during this period, which sometimes serve as a significant disruptor to supply and pricing. By the end of Q1 2024, these combined factors—inventory levels, anticipated demand surges in specific sectors, energy costs, and seasonal workforce fluctuations—shaped the pricing dynamics of Magnesium Chloride in the region. The final price for Magnesium Chloride (FOB) Rotterdam in the Netherlands concluded at USD 480/MT. This figure reflects the complex interplay of market forces during the quarter, although specific year-over-year and quarter-over-quarter comparisons were not detailed. The pricing behaviour underscores the importance of a multitude of factors in influencing market trends beyond simple supply and demand metrics.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 was a challenging period for the Magnesium Chloride market in North America. The market experienced a decline in prices due to factors such as weak demand from sectors like Textile and water treatment, as well as an imbalance between supply and demand. The availability of sufficient product stocks in domestic ports contributed to the oversupply in the market.
Additionally, the reduction in operation rates caused by the winter season further impacted the demand for Magnesium Chloride. Among the countries in North America, the United States had the most significant changes in prices. The market witnessed a notable decline in prices, primarily influenced by the demand shifts in sectors like Textile and water treatment.
The imbalance between supply and demand was mitigated, leading to a downward trend in the market. The fluctuations in energy costs also played a role in the decrease in production expenditures. In terms of price trends, the Magnesium Chloride price in the USA for Dec 2023 was USD 560/MT. In summary, the Magnesium Chloride market in North America faced challenges in the fourth quarter of 2023, with declining prices and an oversupply of the product. The weak demand from sectors like Textile and water treatment, along with the reduction in operation rates, contributed to the market's bearish sentiment.
APAC
The APAC region's Magnesium Chloride market in Q4 2023 witnessed several significant factors that impacted prices. In terms of South Korea, which saw the most significant changes in prices, the market experienced a bullish trend in Oct 2023. The demand for Magnesium Chloride from the downstream sectors remained high, especially in the Textile and Construction industries. This increased demand resulted in a shortage of available Magnesium Chloride, leading to a competitive environment among buyers. Additionally, the rising trajectory of crude oil contract prices further drove up the production cost of the material, contributing to the price increase. In Dec 2023, there was a notable decline in prices due to a correction in demand from downstream sectors such as Textile and Construction. This imbalance between supply and demand eased as production levels were adjusted to restore market equilibrium. Secondly, the continuous weakness in energy prices contributed to a reduction in overall production costs, further affecting prices. Lastly, the market was influenced by shifts in demand from other Asian countries, particularly in South Korea, which experienced a significant increase in demand from downstream businesses in the Textile and Construction sectors.
Europe
The Magnesium Chloride market in Europe during the fourth quarter of 2023 witnessed several key factors that influenced prices. In Oct 2023, there was a high demand for Magnesium Chloride from critical sectors such as Construction and Textile industries. This increased demand was driven by robust activities in the construction sector and the need for de-icing solutions during the colder months. Additionally, the limited supply of Magnesium Chloride resulted in scarcity and challenges in meeting market demand. One notable country in the European region, the Netherlands, experienced significant changes in prices. In Dec 2023, the market in the Netherlands observed a notable decrease in prices due to a demand adjustment within sectors like Textile and water treatment. The prior disparity between supply and demand eased, leading to a descending market trend. The continuous fragility in energy costs also contributed to a reduction in production expenses. In terms of price changes, the Magnesium Chloride price in the Netherlands for the current quarter is USD 532/MT, FOB Rotterdam. This represents a 2% decrease compared to the previous quarter.
For the Quarter Ending September 2023
North America
The price of Magnesium Chloride experienced a bullish trend throughout the third quarter of 2023, showing an increase of approximately 12% during the entire Q3. At the beginning of Q3, this upward trend was primarily attributed to heightened demand from downstream sectors, particularly in rubber and construction. The increased demand led to an imbalance between supply and demand, resulting in price hikes. Additionally, rising shipping costs further contributed to the overall price increase. Strong market fundamentals in the upstream sector and increasing crude oil contract prices also played a role in this upward trend. In August, Magnesium chloride prices continued to rise. This was mainly due to increased demand from downstream sectors. With the approaching winter season, there was a significant expected surge in the consumption of magnesium chloride for de-icing purposes. As a result, traders were eager to procure larger inventories at lower prices to maximize their profit margins in the seasonal market. As the last month of Q3 unfolded, the overall price increase was further influenced by the rising trajectory of shipping costs caused by disruptions in the Panama Canal. Despite the absence of significant changes in the factors affecting final prices, Magnesium chloride prices in the US market continued to increase in line with the observed market dynamics and conditions from the previous month.
APAC
In the Chinese market, Magnesium chloride prices witnessed an upward trend, with an increment of approximately 29% during the third quarter of 2023. Market sentiments were influenced by various factors impacting supply and demand dynamics. At the beginning of the quarter, Magnesium chloride prices displayed a bullish trend, rebounding after a minor dip in the previous period. This price surge was primarily driven by increased demand from key sectors, particularly the construction and paper industries. Rising inquiries and orders from these sectors created an upward momentum in the market. In August, Magnesium chloride prices experienced a significant increase, mainly due to heightened demand from downstream sectors, notably agriculture and construction. This demand surge created an imbalance between supply and demand, resulting in price increments. As the last month of Q3 approached, Magnesium chloride prices continued to trend upward. The primary driver for this trend was the increased demand from downstream sectors. Additionally, with the upcoming winter season, there was a significant expected surge in the demand for Magnesium chloride, especially for de-icing purposes in the international market. Traders sought to procure large inventories at lower prices to maximize profit margins in the seasonal market. This heightened demand and strategic purchasing maintained positive market sentiments, leading to an increase in the market value of the product over the month.
Europe
Throughout the third quarter of 2023, the Magnesium Chloride market in Europe consistently followed an upward price trajectory. At the beginning of Q3, the market exhibited an upward price trend, rebounding from a slight decrease in the previous month. Demand from the downstream construction industries remained robust, leading to increased orders and heightened trading activities for this commodity. Additionally, improvements in economic activities and reduced recession fears continued to influence market sentiments. In the second-to-last month of Q3, the Magnesium Chloride market continued its upward trend, with a slight increase in the market value compared to the previous month. Demand remained high as market participants anticipated the winter season, during which the consumption of Magnesium Chloride for de-icing purposes is expected to surge. Strong market fundamentals related to crude oil also contributed to the increasing production cost of the material. As the last month of Q3 unfolded, the Magnesium Chloride market sustained its upward trend, reflecting the trajectory observed in the preceding month. This price surge was primarily driven by increased demand from critical sectors, particularly the construction and textile industries. Rising inquiries and new orders from end-user sectors contributed to the pronounced upward momentum in market dynamics.
For the Quarter Ending June 2023
North America
The price of Magnesium Chloride remained bearish over the second quarter of 2023 and showcased a decrement of approximately (10.5%) during the entire Q2. At the beginning of Q2, Market analysts primarily ascribed this descending trend witnessed on account of sluggish queries from the associated businesses like the Textile and Construction industries. Furthermore, in the month of May, it added that the Magnesium Chloride market experienced the impact of the downturn in its price due to adequate supplies of product in the domestic ports, which kept the market oversupplied and due to the plentiful availability of the product in the region, despite low demand, Slump in purchasing activities of the material were observed as the demand recovery fell short of expectations. Overall demand of material showed a deep contraction and failed to regain momentum amid Weak demand from downstream Textile and paper industries. Furthermore, in the month of June, the market fundamental remained unchanged and continued to showcase the same declining trend, overall Magnesium Chloride FOB Texas remained at its lower end within the entire Q2 time period as attitude towards the demand is remained dubious, on the back disrupted market sentiments from the downstream country's Textile and construction industry.
APAC
In the Chinese market, the price of Magnesium chloride experienced a mixed trend during the second quarter of 2023. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. At the beginning of the quarter, the Magnesium chloride market witnessed a surge in price trend. The rise in demand from its downstream industries, such as Textile and Paper, put significant pressure on the supply of materials in the Chinese market. Suppliers experienced challenges to meet the increased demand due to low stock levels. Besides, providers continued to receive inquiries about the product with low records. Thus, to meet the growing demand, there has been a significant increase in trading activities for the commodity has been observed in both April and May. Moreover, market participants have shifted their focus towards acquiring substantial stocks to stockpile inventories further. Coming to the last month of Q2, the domestically traded price of Magnesium Chloride in the Chinese market assessed a declining price trajectory during this month. The demand outlook from the downstream Textile industries remained at its lower end in the wake of high base as companies claimed to already procure a substantial amount of the product in the previous month, leading to market saturation. In conclusion, overall, Magnesium Chloride FOB Shanghai experienced a drop of approximately (6%) during the entire Q2 time period.
Europe
The Magnesium Chloride market continuously follows a declining price trajectory throughout the second quarter of 2023. At the beginning of Q2, a generally skeptical market was created by falling trading activities. The extended weakness in the buyer appetite in the domestic market, as well as in the international market with sluggish end-user consumption in the key industry such as the Textile and insulation sector, prompted market participants to keep the prices on the weaker side to keep the prices economical. Furthermore, during the second last month of Q2, adequate supplies of products in the domestic ports kept the market oversupplied, and due to the plentiful availability of the product in the region, despite low demand amid feeble purchasing activities of the material with it Slump in the market value of Magnesium Chloride was observed. Additionally, economic uncertainty and recession fear continued to govern market sentiments. Thus, the price of Magnesium Chloride FOB Rotterdam drops to USD 432/MT in the last month of Q2, with an overall decrement of roughly (13%) during the entire Q2 time period.
For the Quarter Ending March 2023
North America
Overall price dynamics of Magnesium Chloride showcased mixed price dynamics due to fluctuating demand outlook for the product from fertilizer and personal care manufacturing units. The demand outlook inclined in the first half of the quarter as the demand for the product from the fertilizer sector remained on the upper edge. Moreover, the threatening economic recession and inclined energy prices contributed equally to inclining the prices of Magnesium Chloride. In the second half of the Magnesium Chloride market, dynamics shifted northward in the US market as demand for the product from downstream (fertilizer and construction) sectors was mild, influencing the total market dynamics of the product in the domestic market.
Asia-Pacific
The Asia-Pacific market witnessed mixed market dynamics of Magnesium Chloride in the first quarter of 2023 owing to the varying demand for the product from the fertilizer sector. The demand for magnesium chloride from fertilizer production facilities was influenced by the spring season. The Asian players are placing more emphasis on meeting domestic demand and have applied pressure on manufacturers to boost fertilizer production, which raised the demand for the product. However, the demand outlook for the product declined in the regional market on account of sufficient stockpile availability and a slow demand outlook for the product from end-use manufacturing units.
Europe
The overall market dynamics of Magnesium Chloride inclined in the regional market on account of inclined to import prices and strengthened demand outlook for the product from end-use manufacturing units. Moreover, in the first month of Q1, the demand for the product from the fertilizer and construction sector remained on the upper edge. The spring season, inclined importing and logistics charges, and a series of protests that occurred in the domestic market, impacted the overall market dynamics of Magnesium Chloride in the European market. Multiple unions (railways, laborers, etc.) went on a nationwide strike to protest-Pay equality and work conditions, which disrupted the supply chain in the Italian market.
For the Quarter Ending December 2022
North America
During Q4 2022, the prices of Magnesium Chloride increased in the North American regional market, with quotations ranging at USD 580/ton FOB Texas in December within the United States of America. The low-priced supply of MgCl in the USA market was observed in the first month of the quarter affecting the market sentiments. Shifts in downstream demand, raw material purchasing, and variations in the US region's structural factors affected the market sentiments. The supply of imports from Israel and Germany increased due to escalating demand in the US domestic market and the plunge in the freight charges by the end of the quarter.
Asia
The prices of Magnesium Chloride rose from the beginning of the fourth quarter of 2022 to the middle of the quarter and remained stable till the end of the quarter in the Asian market, as per the ChemAnalyst Research team. The inventories were lowered in the first half, along with plummeting stock of Magnesium Chloride in the domestic market during the period. There has been a shift in the supply chain of Magnesium Chloride due to growing concerns about geopolitical tensions overall and pandemic-induced logistical disruptions in China curtailing the demand from downstream industries. According to our statistical data, the average quarterly costs were hovering at USD 124/MT Magnesium Chloride FOB Shanghai in the Chinese market.
Europe
In the European market, the prices of Magnesium Chloride followed the same trend as that of the Asian market during Q4 of 2022, with prices hovering at USD 510/ton Magnesium Chloride FOB Rotterdam in November 2022. The market lacked trade, and the supply and demand were engaged in a competitive game sourced by the traders owing to soft consumer sentiment in the European market. The market was dull in the early stage, continued with the early shortage, and triggered scarcity further observed along with long-term supply contracts paying a fixed rate for the assurance of reliable deliveries. In the later period, downstream consumption accelerated in response to a supply recovery and increased demand after distributors stockpiled on concerns about future availability.
For the Quarter Ending September 2022
North America
The prices of upstream feedstock, Magnesite, and Hydrochloric Acid affected the market sentiments, impacting the regional trade. Freight charges were observed to be declined sharply on the Asia-US routes during the third quarter, which resulted in ample availability of products in the international market. The stable demand from the downstream industry has been met with ample supply. The prices were observed to rise and assessed at USD 535/ton Magnesium Chloride FOB Texas USA, and consumption became more.
Asia
The prices of Magnesium Chloride increased slightly in the Asian market during the third quarter of 2022. According to the manufacturer's quotation, the cost of upstream hydrochloric acid on the domestic market rose slightly. The fertilizer manufacturers were enthusiastic about buying raw material hydrochloric acid, which positively impacted the price of products. The news on the demand side led to a significant increase in purchase inquiries and transactions. The demand from downstream pharmaceutical and paper manufacturing markets also widened with growing consumption in the regional Chinese market. The prices ranged at USD 160/ton of Magnesium Chloride FOB Shanghai in China during August.
Europe
The prices of Magnesium Chloride fluctuated during the third quarter of 2022 in the European market. A decline in China's export volume due to port congestion affected Magnesium-dependent products, including pharmaceuticals and fertilizers market in the European region. As a result of escalating demand from downstream pharmaceuticals and fertilizers industries, product prices rose in Italy. This led to a decrease in inventories and a lower number of products stockpiling with the traders and suppliers in the region. The freight charges vary according to the global Crude Oil market's along with the easing availability of shipping containers which impacted the prices of Magnesium Chloride. As shipping rates dropped during the middle of the quarter, consumers' expenses lowered, and backlogs of suppliers were cleared, which helped the queues at ports to ease down towards the end of the quarter. The prices ranged from USD 550-570/ton in the Netherlands.
For the Quarter Ending June 2022
North America
The US market saw a surge in Magnesium Chloride prices in the North American region, with prices observed to be hovering around USD 525.00/ton of Magnesium Chloride (FOB Texas) during June with a quarterly surge of 1.9%. Price volatility of feedstock, fluctuating demand from downstream medicinal, coating, and textile market, and shortage of shipments due to transportation problems supported the price. Supply chain value disruption was one of the major causes of the cost rise in the European Union. This led to lower inventories and fewer products to be stockpiled with the traders and the suppliers in the region.
Asia
The prices of Magnesium Chloride surged in the Asian market during the second quarter, with prices observed to be hovering around INR 5210.00/ton of Magnesium Chloride Ex-Ahmedabad in the Indian market during April with a quarterly escalation of 1.3%. The increased prices of upstream feedstock Magnesium and Liquid Chlorine in the Asian market supported the upward price trend. The surge in the downstream agricultural and medicinal market demand pulled the prices in an upward direction. Varying global freight charges due to the ongoing war between Russia and Ukraine was one of the reasons for the costs to escalate. Magnesium is widely used in alloys, which increases the industry's growth and fuels price increases through increased demand.
Europe
Magnesium Chloride prices escalated in the European market, hovering around USD 546.00/ton of Magnesium Chloride CFR Milan and a quarterly surge of 0.7% during May per Chem Analyst pricing team data. This upward push is notably more significant while searching the complete area route from April to June 2022. The spot prices of Magnesium boosted in the Netherlands market. Due to the highly-priced utilization of light-weight substances, precedence is given to sports to lessen charges through growing new implications and the affordability of producing assignments. The freight prices fluctuated due to the ongoing war between Russia and Ukraine, which also led to logistical constraints.
