For the Quarter Ending December 2024
North America
In Q4 2024, the Zinc Sulphate market in the North American market, especially USA showed a downward trend. Oversupply, subdued agricultural activity, and lower input costs contributed to this decline. While logistical improvements and stable energy prices eased some pressures, cautious buyer sentiment and ample inventories kept the market competitive, and prices depressed.
Fertilizers prices in the US declined in October due to oversupply and weak demand from the agricultural sector, which was already dealing with hurricane disruptions. The relatively moderate demand for fertilizer in the US during the harvest season, impacted by weather events, would also contribute to low Zinc Sulphate prices.
However, other fertilizers like urea prices remained stagnant in November due to continued subdued demand and stable supply. The seasonal slowdown in agricultural activity during this period, coupled with manufacturing constraints and political uncertainty from the US elections, further reinforced this trend of stable to slightly depressed pricing for Zinc Sulphate. Furthermore, in December, prices in the US declined further as supply chain disruptions eased and ample inventories persisted. Reduced seasonal demand, influenced by unfavorable weather conditions, contributed to buyer hesitancy.
APAC
In Q4 2024, the Zinc Sulphate market in the APAC region, particularly India experienced fluctuating prices influenced by a complex interplay of supply, demand, and external factors. Prices declined in October due to an oversupply situation where production outpaced moderate demand from the agrochemical sector. Even stable zinc oxide feedstock prices couldn't offset the surplus. However, prices rebounded in November, driven by steady demand from the agrochemical sector, despite the typical post-festive slowdown. Prices increased further in December, rising by 5.6%. Strong demand from the Indian manufacturing sector, especially the agrochemical industry, coupled with global supply chain disruptions (increased shipping costs) and inflationary pressures, created a tight market situation.
The Indian Zinc Sulphate market showed a net upward price trend in Q4 2024, despite an initial decline in October. While oversupply initially depressed prices, robust demand from the agrochemical sector, particularly in December, and global supply chain constraints fueled price increases later in the quarter. Market participants faced challenges in managing fluctuating demand, navigating global supply chain disruptions, and dealing with inflationary pressures. The interplay between strong domestic demand and global supply chain vulnerabilities created a volatile market environment.
Europe
Germany's Zinc Sulphate market in Q4 2024 experienced price movements largely influenced by the performance of the European agrochemical sector.
October saw Zinc Sulphate prices rose due to increased input costs, shortages, and seasonal demand. November brought relative stability to Zinc Sulphate market due to balanced supply and demand. However, persistent challenges, such as natural gas shortages and port congestion, influenced Zinc Sulphate supply chains indirectly. December maintained this stability in Zinc Sulphate market, despite a decline in raw material prices. Contractual agreements and sufficient supply minimized the impact. Yet, ongoing logistical issues may have continued affecting Zinc Sulphate availability and pricing.
The overall pricing trend for Zinc Sulphate in Europe during Q4 2024 is likely to reflect the volatility seen in the agrochemical sector downstream. October saw price increases. November experienced relative stability, while December maintained a stable price. However, a generally upward price movement across Q4 was observed given the challenges facing the broader agrochemical sector and the resulting impacts on raw material availability.
Market participants faced challenges related to raw material availability and cost fluctuations, logistical bottlenecks affecting Zinc Sulphate supply chains, and the overall economic climate impacting agricultural demand. The interplay between these factors resulted in a volatile market environment, making accurate pricing predictions and effective inventory management particularly difficult.
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.
