For the Quarter Ending September 2024
North America
In Q3 2024, zinc sulphate prices in the North American market, especially the USA displayed a mixed trend influenced by various market dynamics. In July, prices faced downward pressure due to an oversupply situation, characterized by reduced trade activity and cautious procurement from farmers. Adverse weather conditions negatively impacted crop yields, leading to lower demand for agrochemical inputs and contributing to declines in Zinc sulphate prices.
However, the market shifted in August, with prices rising significantly. This increase was driven by heightened demand from the agrochemical sector, as favourable weather conditions boosted crop forecasts for corn and soybeans. The need for essential nutrients surged, further exacerbated by rising import costs from Asian markets.
September maintained this upward trajectory, supported by strong fertilizer procurement by farmers, who recognized zinc sulphate’s critical role in crop health. Supply constraints and limited inventories, combined with sustained demand from the agricultural sector, kept Zinc sulphate prices steadily increasing. Overall, the third quarter highlighted the volatile nature of zinc sulphate pricing amid evolving agricultural demands and supply chain dynamics.
APAC
In the third quarter of 2024, the APAC region witnessed a significant uptrend in Zinc Sulphate pricing, driven by multiple factors. Strong demand from various industries, particularly the agrochemical sector, played a pivotal role in propelling market prices upwards. Additionally, a surge in procurement activity and reduced inventory levels intensified supply-demand dynamics, further boosting prices. The rise in cost support from upstream zinc oxide also contributed to the overall price increase. Despite disruptions such as plant shutdowns, the market remained resilient, with manufacturers meeting the heightened demand adequately. India, in particular, experienced the most pronounced price changes in the region. The quarter saw a steady increase in Zinc Sulphate prices, with a notable 2% rise from the previous quarter. The prices showed an increase of 1% between the first half and second half of the quarter. The overall trend showcased a positive sentiment, reflecting stability and growth in the market. Seasonal factors and correlation in price changes indicated a robust pricing environment.
Europe
In Q3 2024, zinc sulphate prices in Europe specifically Spain demonstrated a mixed trend influenced by various factors within the agrochemical sector. July began with stable pricing due to sufficient supply and consistent domestic production. However, logistical challenges stemming from geopolitical tensions, particularly in the Red Sea and European ports, led to increased shipping costs and delivery delays. The market shifted in August, where prices surged significantly driven by heightened agricultural demand as farmers prepared for planting. Production constraints, including equipment failures and maintenance issues, restricted availability, and exacerbating price increases. The interplay of strong crop yield requirements and geopolitical disruptions intensified upward pressure on zinc sulphate prices. By September, the trend continued as farmers replenished inventories in anticipation of the planting season. Persistent supply challenges and rising raw material costs further fueled price hikes, highlighting the growing reliance on imported fertilizers amid local production difficulties. Overall, the quarter showcased a trajectory of initial stability followed by significant price increases, emphasizing the need for stakeholders to navigate the complexities of pricing and supply in the evolving agrochemical landscape.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Zinc Sulphate market in the USA experienced varied price trends. The availability of upstream Zinc Oxide was adequate throughout the quarter, ensuring a consistent supply of raw materials for Zinc Sulphate production. A significant factor that eased production costs was the decline in natural gas prices. According to the Energy Information Administration (EIA), U.S. working natural gas in storage reached 2,893 billion cubic feet (Bcf) for the week ending May 31, which was 581 Bcf above the five-year average. This increased availability of natural gas reduced overall manufacturing expenses, providing some relief to producers.
Additionally, the market has been impacted by seasonal demand fluctuations. Typically, the second quarter has seen an uptick in activity due to the planting season in the agrochemical sector. However, this year, the seasonal boost has been less pronounced, adding to the market's challenges. These conditions have led to a cautious approach by suppliers and manufacturers, who have been dealing with the effects of oversupply and falling prices.
Amidst These conditions, the market faced challenges due to economic pressures. Tight monetary policies across the USA, driven by the Federal Reserve maintaining the federal funds rate at 5.25%-5.50% amid persistent inflation and a tight labor market, limited economic activity and purchasing power, leading to cautious procurement practices. In summary, Q2 2024 for Zinc Sulphate in the USA was marked by mixed price trends. While average demand from the agrochemical sector and declining natural gas prices helped stabilize the market, economic challenges and reduced manufacturing rates posed ongoing difficulties. This resulted in a complex but manageable market environment for Zinc Sulphate producers.
APAC
In the second quarter of 2024, the pricing environment for Zinc Sulphate in the APAC region remained stable, influenced by a balance of supply and demand factors. Persistent inquiries from downstream agrochemical industries ensured consistent market fundamentals. The robust manufacturing conditions across the region, coupled with sufficient supply of energy materials and favorable industrial production data, contributed to this stability. The quarter witnessed no significant plant shutdowns or disruptions, which further supported steady pricing.
Focusing on India, which experienced the most notable price changes, the overall trend reflected an upward trajectory driven by active demand from agrochemical sectors and cost support from upstream Zinc Oxide and Sulphuric Acid. Despite some fluctuations due to seasonality and moderate increases in manufacturing costs, the price remained largely stable with minimal variation between the first and second halves of the quarter.
Compared to the previous quarter in 2024, the price saw a approximately 5% increase, indicative of a resilient market recovery and robust manufacturing activity.
Europe
In the second quarter of 2024, the European market for Zinc Sulphate experienced mixed price trends. Demand from the downstream agrochemical sector remained average, contributing to a stable market outlook. Despite tight monetary conditions across Europe, which affected broader economic activity, manufacturing firms-maintained operations at reduced rates to balance supply and demand.
The availability of upstream Zinc Oxide was adequate throughout the quarter, ensuring a consistent supply of raw materials for Zinc Sulphate production. A significant factor that eased production costs was the decline in natural gas prices, which reduced overall manufacturing expenses and helped offset some economic pressures. Despite these favorable conditions, the market faced challenges due to stringent monetary policies that suppressed economic activity and limited purchasing power. This environment led to cautious procurement practices and a conservative approach by manufacturers.
In summary, the second quarter of 2024 for Zinc Sulphate in Europe was characterized by mixed price trends. While average demand from the agrochemical sector and declining natural gas prices helped stabilize the market, tight monetary conditions and reduced manufacturing rates posed ongoing challenges. This created a complex yet manageable market environment for Zinc Sulphate producers.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American market for Zinc Sulphate experienced a stable pricing environment. However, in early Q1, the market also faced challenges, including the impact of the ongoing destocking season and the cautious approach of manufacturers in the wake of tepid demand and lower operating rates.
Furthermore, On the supply side, manufacturers of Zinc Sulphate operated without major disruptions, ensuring sufficient availability to meet market demand. Raw material supplies, including zinc and Sulphuric acid, remained stable during this period, contributing to the overall price stability. Demand for Zinc Sulphate remained steady, particularly from industries such as agriculture and animal feed. The agriculture sector continued to drive demand for Zinc Sulphate as a key nutrient for crops.
Cost factors, such as raw material prices and energy costs, also remained relatively unchanged, providing further support to price stability. However, fluctuations in freight charges due to shipping disruptions in the Red Sea caused by geopolitical tensions could have impacted overall costs.
APAC
The pricing environment for Zinc Sulphate in the APAC region during Q1 2024 has been largely stable, with some fluctuations observed in different countries. In general, the market has been influenced by factors such as demand from the downstream agrochemical industries, availability of upstream Zinc Oxide, and seasonal patterns.
India, in particular, has experienced significant price changes in Zinc Sulphate during this quarter. In January, prices decreased by 5.3% compared to the previous month. This decline can be attributed to lower demand from the downstream industries and the winter season's low procurement levels. Manufacturers adjusted their price quotations to stimulate shipments and reduce excess finished stocks.
In February, prices rebounded by 1.2% as inquiries from the agrochemical sector increased. The Rabi planting season led to an uptick in demand for Zinc Sulphate, supporting price realizations. The operating rates of the manufacturing firms were also adequate, meeting the growing needs of the agrochemical industries. In conclusion, the latest quarter-ending price for Zinc Sulphate (33% Zinc) Ex-Surat in India is USD 797/MT.
Europe
In the first quarter of 2024, the market for Zinc Sulphate in Europe experienced a complex interplay of factors influencing pricing dynamics. While the overall market conditions leaned towards bearish, characterized by limited supply and subdued demand, certain regions such as Belgium witnessed more pronounced price fluctuations.
In Belgium, weak consumer demand for Zinc Sulphate was attributed to a combination of factors including adverse weather conditions, disruptions in the supply chain, and protests by farmers against rising costs and environmental regulations. These factors collectively contributed to a decline in prices compared to the same quarter last year.
Furthermore, the year-end holidays and destocking season further dampened industrial activity, leading to reduced demand for raw materials and impacting pricing dynamics in early Q1. Some companies even initiated scheduled maintenance during this period to alleviate inventory pressure. This, coupled with abundant gas inventory levels, eased supply concerns and lowered European gas prices. In terms of price trends, Germany experienced significant price changes compared to the previous quarter. The market started the quarter with lower prices, but they gradually increased towards the end.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American market for Zinc Sulphate saw a varied trend. Initially, there was a slight price increase driven by robust demand from the fertilizer industry and improved industrial activities. However, concerns arose about a potential supply shortage due to a labor strike at the St. Lawrence Seaway, which is critical for the Canadian fertilizer sector.
In Canada, Zinc Sulphate prices experienced a marginal increase during this period. This rise was fueled by strong demand from the downstream fertilizer industry and an uptick in industrial activities. However, there were concerns about a potential supply shortage due to a labor strike at the St. Lawrence Seaway, which is vital for the Canadian fertilizer industry.
Overall, there were challenges such as slowing demand from downstream industries and a decline in manufacturing PMI, the firm demand from the fertilizer industry, and improved market sentiments provided some support. The destocking season in December led to reduced demand for Zinc Sulphate, as downstream industries lowered their inventory levels, contributing to the observed price decrease during this period. Throughout the quarter, there were no reported plant shutdowns in the market.
APAC
In the APAC region, the fourth quarter of 2023 for Zinc Sulphate was characterized by various factors that influenced the market dynamics. Firstly, the increased inquiries from the downstream agrochemical industries during the Rabi planting season had a positive impact on the market. This led to a moderate to high demand for Zinc Sulphate. Secondly, the prices of upstream Sulphuric Acid escalated, putting upward pressure on the price realizations of Zinc Sulphate. Furthermore, the year-end destocking season has also weighed upon the production activities as manufacturers were more inclined towards the release of the existing inventories rather than to initiate fresh production. The cost support from upstream Zinc Oxide is also insufficient as its prices have dropped in the given timeframe. Thus, the manufacturers have slashed their offers to stimulate the shipments. In terms of price trends, the quarter-ending price of Zinc Sulphate in India was INR 820/MT. However, there was a slight increase of 1.0% from the previous quarter. Overall, the fourth quarter of 2023 saw a positive market sentiment for Zinc Sulphate in the APAC region, driven by demand from the agrochemical sector.
Europe
In the fourth quarter of 2023, the market for Zinc Sulphate in Europe witnessed mixed market fundamentals. Demand for Zinc Sulphate in the region ranged from moderate to high, driven by increased inquiries from fertilizer manufacturers and consistent imports from global markets. In October The resumption of fertilizer trade among Russia, the USA, and Europe positively influenced market prospects. However, manufacturing production in the Eurozone declined, leading to a pessimistic market outlook. The supply of Zinc Sulphate was moderate. Production costs rose due to elevated gas prices and more expensive raw materials. No plant shutdowns were reported during this period. Furthermore, In Belgium, Zinc Sulphate prices rose in Q4 as demand conditions improved. The supply chain operations in Belgium remained efficient, and no significant supply-related issues were noted. The prices of Natural Gas have also dropped, easing the manufacturing costs of Zinc Sulphate. Additionally, the industry experienced a destocking season, during which businesses reduced their inventory levels, further contributing to the decreased demand for Zinc Sulphate. In response, manufacturers adjusted their production levels to align with subdued market demand, addressing the oversupply issue to stabilize prices and restore market balance.
