For the Quarter Ending September 2024
North America
In Q3 2024, the Magnesium Sulphate price trend oscillated in the North American region, showcasing moderate sentiments in the market. At the beginning of the quarter, prices witnessed a notable increase, driven by a combination of factors influencing the market dynamics. Factors such as steady demand, limited supplies, and cost support from upstream Sulphur and feedstock Sulfuric Acid contributed to the overall bullish market sentiment, highlighting a stable and robust pricing landscape for Magnesium Sulphate in the region.
In the middle of the third quarter, Magnesium Sulphate production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations. The correlation in price changes demonstrated a positive sentiment, with an almost 3% increase in mid-Q3.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities and demand from end-user industries and an increase in domestic stockpiles. The market players reduced their quotations. The quarter-ending price in the USA stood at USD 695/MT of Magnesium Sulphate CFR USGC and the overall quarter-on-quarter percentage surge of 24% further solidified this growth trajectory in Q3 2024.
APAC
Like the North American region, the Magnesium Sulphate price trend in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed a significant surge in demand for Magnesium Sulphate from various industries, particularly the cosmetics and personal care sectors. This uptick in demand, coupled with moderate supply levels, led to a bullish market sentiment. Additionally, cost support from feedstock Magnesium and Sulfuric Acid contributed to the rise in production costs, further influencing the pricing trend. Plant shutdowns, such as Fugu Jinchuan's suspension of magnesium smelting operations impacted the feedstock Magnesium Oxide availability to produce Magnesium Sulphate during the period. However, towards the end of the quarter, the Magnesium Sulphate price trend shifted movement and prices witnessed a decline due to improved inventory levels in the region. At the same time, the resumption of Crude Oil supply from Libya in September 2024 resulted in increased refinery run rates and upstream Sulphur and feedstock Sulfuric Acid supplies availability, which negatively impacted the production costs. The quarter-ending price for Magnesium Sulphate FOB Qingdao in China stood at USD 95/MT after an 8% increase in previous quarter prices, reflecting the overall positive pricing environment and upward trend in market prices.
Europe
In Q3 2024, the Magnesium Sulphate market in the European region has been characterized by a fluctuating pricing environment. At the beginning of the quarter, prices showcased an upward movement, as the demand was firm from the key downstream pharma sector, while the manufacturing activities were low amid labor shortages during summer holidays in the region. Reduced production with a consistent decline in the Eurozone Manufacturing PMI Index resulted in low supplies to the market and stressed the inventory levels amid firm offtakes. Supply-side dynamics also played a role, as supply availability was moderately low during the summer holidays creating imbalanced demand-supply dynamics. Yet demand failed to match this increase, as The Eurozone's beauty sector demand continued to remain robust, significantly impacting Magnesium Sulphate consumption. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Additionally, concerns about a potential recession in the US affecting the international crude oil market and refinery operations have led to a shortage of upstream Sulphur and feedstock Sulfuric Acid supplies, impacting Magnesium Sulfate production rates. Conclusively, the quarter concluded with Magnesium Sulphate priced at USD 583/MT FD Rotterdam in the Netherlands, after an overall notable surge of 25% in the last quarter's prices, indicating a consistent upward trend.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Magnesium Sulphate market saw a significant price increase due to several key factors. Strong demand from sectors like cosmetics, daily care, and agrochemicals, fueled by a trend toward eco-friendly products, drove prices up. Supply constraints, including limited availability of Sulphuric Acid and Magnesium and plant shutdowns for maintenance, further tightened the market.
Focusing on the USA, the Magnesium Sulphate market exhibited the most significant price escalations. The overall trend indicated a robust upward trajectory, accentuated by seasonal factors such as increased agrochemical demand during planting season and heightened consumer purchases in the beauty and wellness sector. The price dynamic revealed a substantial 34% increase from the first to the second half of the quarter, reflecting intensified market activities and constrained supplies.
Comparatively, the quarter recorded a 44% price surge from the preceding quarter of 2024, underscoring the escalating cost environment. The quarter culminated with Magnesium Sulphate prices at USD 670/MT CFR USGC, marking a consistent and positive sentiment in the market. This persistent increase in prices, driven by both supply-side disruptions and robust demand, delineates a vibrant yet challenging pricing landscape for Magnesium Sulphate in the region.
APAC
In Q2 2024, Magnesium Sulphate prices in the APAC region rose significantly due to several key factors. The primary driver was the limited availability of feedstock Magnesium, worsened by production disruptions, notably the planned maintenance shutdown of Fugu Jinchuan's magnesium smelting operations in China. This reduced production capacity created a supply bottleneck amid strong demand from the agrochemical, beauty, and pharmaceutical sectors. Additionally, increased demand for feedstock Sulphuric Acid, driven by the agrochemical industry, intensified cost pressures. Logistical challenges, including higher freight charges and increased air freight volumes due to the Red Sea crisis, also contributed to the price increase.
In South Korea, the market saw the most pronounced price volatility, reflecting regional trends. Demand surged, particularly in the beauty and wellness sectors, because of rising temperatures. Prices increased by 22% compared to the previous quarter, and the difference between the first and second halves of the quarter was a notable 34%. By the end of the quarter, prices reached USD 1330/MT CFR Busan. Despite logistical and supply challenges, the market remained strong, supported by robust demand and ongoing supply chain disruptions.
Europe
In Q2 2024, the Magnesium Sulphate market in Europe experienced a significant price increase. This rise was driven by strong demand from the agrochemical and pharmaceutical sectors and limited supply. Production disruptions at key suppliers, such as Fugu Jinchuan in China and Shaanxi Zhongxin, worsened the supply-demand imbalance, pushing prices higher. Additional factors included increased feedstock costs, like Sulphuric Acid, and rising logistics expenses due to geopolitical tensions and labor shortages. Germany, where prices fluctuated most, saw a particularly sharp increase. Seasonal demand surged from agrochemical industries for planting and the beauty and wellness sectors for bath salts, reinforcing the positive pricing trend. Prices rose by 44% compared to the previous quarter and by 36% between the first and second halves of the quarter, indicating a steady upward trajectory. By the end of Q2 2024, Magnesium Sulphate FOB Hamburg was priced at USD 550/MT. This continued increase highlights a strong market sentiment driven by solid demand, constrained supply, and higher production and logistical costs. Q2 concluded positively for suppliers, with a favorable pricing environment.
For the Quarter Ending March 2024
North America
In Q1 2024, the Magnesium Sulphate price trend swung in the North American region. At the beginning of the quarter, Asian exporters decreased their quotations due to increased availability of stocks in the market and sluggish demand from buyers during the New Year holidays.
During the mid-quarter, prices declined again due to vigilant buying activities in the international market and moderate consumption as a stabilizer for Calcium Hydrogen Phosphate for food flavoring agents. However, delays in shipping due to attacks on vessels passing through the Red Sea and increased ship traffic impacted the product supply to the regional market.
Towards the end of the quarter, ocean rates continued to decline, negatively affecting product supplies. At the same time, demand improved for bath salt in the beauty and wellness sector for exfoliating purposes and the rise in temperatures in the Northern Hemisphere. Simultaneously, the food sector exhibited a surge in demand for MgSO4 as a coagulant in tofu production in the food sector due to increased consumer orders for the Easter festival. Conclusively, Magnesium Sulphate CFR USGC quotations in the US accessed at USD 444/MT at the end of the first quarter of 2024.
APAC
During the first quarter of 2024, the price trend of Magnesium Sulphate shifted movement in the APAC region. At the beginning of Q1, the demand for Magnesium Sulphate was moderately low for stocking purposes before the Lunar New Year holidays in major producer China due to reduced applications in the horticulture sector. During the mid-quarter, the product demand fell as a stabilizer for Calcium Hydrogen Phosphate for flavouring agents. In the H2 of the quarter, Sure Chemical Co., Ltd. in Shijiazhuang, a leading manufacturer in the region, urged their customers to ramp up their purchase orders to mitigate market fluctuations. Subsequently, consumers followed suit and increased their orders, leading to a rise in product prices. Towards the end of the quarter, the air cargo market experienced increased demand for the third consecutive month in March, driven by e-commerce expansion and shipping disruptions in the Red Sea, impacting air freight rates and product supplies in the international market. At the same time, Magnesium Sulphate demand for bath salt was firm in the beauty and wellness sector for exfoliating purposes after the recent rise in temperatures in the Northern Hemisphere. At the end of the first quarter of 2024, the Magnesium Sulphate CFR Busan in South Korea witnessed USD 95/MT.
Europe
Like the Asian region, Magnesium Sulphate prices in Europe experienced fluctuations in the first quarter of 2024. Initially, demand was low from the fertilizer industries due to reduced applications in the horticulture sector during the peak winter season. Concurrently, production costs of Magnesium Sulphate increased as feedstock Magnesium prices remained firm from Chinese exporters, driven by high semi-coke prices and increased stocking practices before the Lunar New Year holidays. Midway through the quarter, Lufthansa's operations in Germany faced disruptions due to repeated strikes by cargo handlers affiliated with the Verdi Union, leading to low supply rates for international buyers. However, supply availability remained stable in the regional market, and offtakes remained moderately low, prompting suppliers to adjust their quotations negatively to improve sales. Towards the end of the quarter, international prices rose due to increased stocking orders from buyers and higher quotations from major producers in China, reflecting rising production costs. Simultaneously, a shortage of skilled labor resulting from rising racial tensions in the region disrupted production schedules. Despite this, demand for Magnesium Sulphate for bath salt remained strong in the beauty and wellness sector for exfoliating purposes during the Easter holidays following a recent rise in temperatures in the Northern Hemisphere. As a result, Magnesium Sulphate prices surged notably, with Magnesium Sulphate FOB Hamburg in Germany assessed at USD 360/MT.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the Magnesium Sulphate market in North America experienced various factors that impacted prices. Firstly, there was a decrease in demand from the Horticulture and Pharma sectors, leading to a decline in prices. Additionally, the availability of supplies increased, resulting in a bearish market sentiment.
In the USA market, prices for Magnesium Sulphate decreased by 14.5% during the quarter. The export rates were firm from Asia exporters, while inventory levels moderate in the market due to affected supply chain activities amid decline in the water levels of Panama Canal and Mississippi River. At the same time, the cost support for Magnesium Sulphate decreased due to a decline in feedstock Sulphuric Acid prices and cautious buying activities, which reduced the production costs of Magnesium Sulphate.
Meanwhile, the demand for Magnesium Sulphate remained stable from the Horticulture sector, while consumption rates were low in the Pharma sector. Despite these factors, the market forecast showed a potential increase in demand for Epsom salt from the personal care product industry and the price of Magnesium Sulphate CFR USGC in the USA at the end of Q4 2023 hovered at USD 395/MT.
Asia
During the 4th Quarter of 2023, the Magnesium Sulphate market showed a bearish trend in the Asian region, and the prices decreased by 13% compared to the previous quarter. The domestic inventory levels were firm amid low import orders from the importers as the demand depressed from fertilizers amid low consumption rates from the horticulture sector.
Meanwhile, inquiries were moderate for Epsom Salt from the Pharma sector and beauty and wellness industry. At the same time, the upstream cost support declined due to weak consumption rates and excess availability of feedstock Sulphuric Acid amid declined purchases from agrochemical producers.
Simultaneously, the cost support declined from the feedstock Magnesium amid the reduced demand from the downstream industries due to a decline in trading activities amid cautious buying activities from the buyers as buyers did not want to buy materials at high prices. It reduced the production costs in key Magnesium Sulphate producers, i.e. China and India. At the end of the final quarter of 2023, the product quotations Magnesium Sulphate CFR Busan in South Korea witnessed USD 103/MT.
Europe
Like the Asian and North American market, the Magnesium Sulphate price showcased bearish sentiments in Europe during fourth quarter of 2023. The supply levels remained firm due to stable production and consistent supply rates from the European hubs, leading to adequate availability of the product in the regional market. On the demand side, orders were feeble from fertilizer manufacturers due to reduced consumption rates in the Horticulture sector.
Simultaneously, orders remained moderately low for Epsom Salt from the Pharma sector and beauty & wellness industries. The production costs fell noticeably during the mid-quarter as the cost support declined from the feedstock Magnesium in the international market amid the reduced demand and a decline in trading activities amid cautious buying activities from the buyers.
Towards the end of the quarter, the cost support for Magnesium Sulphate was influenced by the decrease in feedstock Sulphuric Acid prices due to the depressed demand from agrochemical industries. The Netherlands saw the maximum changes in prices, with a percentage decline of almost 27% from the previous quarter. The price of Magnesium Sulphate FD Rotterdam in the Netherlands at the end of the quarter was USD 333/MT.
