Magnesium Chloride Price Trend and Forecast

Magnesium Chloride Regional Price Overview

Get the latest insights on price movement and trend analysis of Magnesium Chloride in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Magnesium Chloride Price Trend for the Q3 of 2024

Asia

The prices of magnesium chloride witnessed a steady trend during the given time span depending on the prices of feedstocks magnesium and hydrochloric acid prices. The prices of magnesium remained stable with marginal fluctuations in the said quarter.
 

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Concurrently, the magnesium chloride market also consolidated amid the bulk inventories and weak downstream demand. Since orders and queries from both domestic and international markets were subpar, the supply dominated the trade scenario in the region. Overall, weak market sentiments were witnessed.

Europe

The price trajectory of magnesium chloride in the European market was similar to that of the Asian market. The market was steady as the gap between the supply and demand sustained similar levels throughout the said duration. Faced with logistical challenges in the previous quarter, the supply of magnesium chloride was still in recovery.

The import volume from the Asian market was average, and the demand from downstream industries was weak, especially from cement plants. The construction sectors in Europe faced challenges in this quarter amid the decline in construction in both residential and commercial sectors. Apart from this, the demand for lithium-ion batteries, where magnesium acts as an electrolyte component, was subdued due to sluggish demand in the automobile sector.

North America

The prices of magnesium chloride in the United States showed mixed trends. The demand from the downstream essential sectors such as construction, chemicals, and pharmaceuticals was low due to a decline in industrial activity in September. This was reflected in the purchasing manager's Index, which had fallen below 50 points in recent months. As the industries consolidated their production, the demand for magnesium chloride showed a decline. With many downstream industries already holding stocks of magnesium chloride, the demand showed no changes and remained steady.

Additionally, Karnalyte Resources revealed that it is exploring the potential to increase magnesium chloride production at its Wynyard project in Saskatchewan. The company aims to enhance output by utilizing advanced solution mining technologies, taking advantage of abundant carnallite deposits. Overall, varying market sentiments were experienced.

Analyst Insight

According to Procurement Resource, the prices of magnesium chloride are expected to fluctuate in the coming quarter depending on the prices of feedstocks and demand from the downstream sectors.
 

Magnesium Chloride Price Trend for the Q2 of 2024

Asia

In the APAC region, particularly China, favorable production of the feedstock commodities, magnesium powder, and hydrochloric acid, supported the resilience of magnesium chloride prices. This increased production contributed to the global supply of raw materials, helping narrow the gap between the market's supply and demand sectors. However, rising freight costs due to global factors such as fuel price hikes and supply chain disruptions adversely impacted the commodity's export volumes.

Although the dependence on global markets in Chinese produce supported the stabilization of the price trend, the traders were concerned about this surge in transportation charges as it might lead to the adoption of a wait-and-see stance by the overseas industries in the near quarters.

Europe

Europe's magnesium chloride market was primarily influenced by the rising freight costs and global supply chain disruptions during the second quarter of 2024. While production in the APAC region remains strong, Europe's reliance on imports from these regions has led to higher prices due to increased transportation expenses. Additionally, logistical challenges and weather-related disruptions in North America have indirectly impacted the European market, as delays and supply chain issues ripple through global trade networks.

North America

In Q2 2024, the magnesium chloride market registered significant growth across North America. The prices of the commodity experienced a steady rise due to current market conditions and evolving economic factors. The dynamic interplay of supply and demand in the raw material markets, such as magnesium powder and hydrochloric acid, also extended ample support. In May, the market was further driven by favorable conditions in the APAC region, particularly China, which led to increased production and supply of the commodity. However, rising freight costs due to fuel price hikes, supply chain disruptions, and higher demand for transportation services impacted the overall functioning of the market.

The collapse of the Baltimore Bridge added potential disruptions to the magnesium chloride supply chain, leading to price escalations due to logistical hurdles at key port facilities. Additionally, weather disruptions in North American regions further strained the overall functioning of the supply chains. These weather events have disrupted transportation activities, causing delays and damage to infrastructure, affecting magnesium chloride availability in the region.

Analyst Insight

According to Procurement Resource, the price of Magnesium Chloride is expected to be influenced by the changing dynamics of the downstream industries and escalating challenges in the import-export sector of the market.
 

Magnesium Chloride Price Trend for the Q1 of 2024

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Asia

In the Asian markets, the magnesium chloride prices were found to be wavering throughout the said period mostly tilted in the southwards direction. The Chinese New Year holidays limited the number of working days for factories and filtration units; this decreased the amount of supplies available for both domestic and international markets. On top of that, the degraded supply chains, because of various disturbances, took much longer to transport the available supplies across a majority of the global trade routes.

The metal and fertilizer industries were also undergoing a little downtime. This kept the downstream demands at bay for magnesium chloride. The rising energy and processing costs were also forcing manufacturers to reconsider production volumes given the existing stocks could not be sold in a very favorable manner. Many plants also planned to undergo maintenance closures. With this, muted market sentiments were observed for magnesium chloride in the Asian markets.

Europe

In the European magnesium chloride market, the pricing situation was not much different from the Asian markets. The prices were observed to be lying low here as well. The trade sentiments were dull and the sluggishness in the downstream sectors was being reflected in the upstream outlooks as well. Shipments from other exporting countries were delayed and were facing port congestion at several points.

The pirate threats were also clouding ocean freight, which directly resulted in shipping companies limiting their sailing vessels, which not only complicated the logistics but also delayed the shipments a lot. Overall, a gloomy market performance was experienced.

North America

Mirroring the weak runs of the Asian and European markets, the magnesium chloride prices remained downward, teetering in the American markets as well. The weak downstream procurement, especially from the food, pharma, and agriculture industries over the past few months of high inflation, led to an overstocking of the inventories in the region. So, the domestic magnesium chloride trade was not as supportive, and the international trade was also restricted because of all the logistical difficulties the shipping industries were facing.

The rising crude oil prices also tempered the manufacturers’ sentiments throughout the said time. Conclusively, the price trend was found to be oscillating within narrow boundaries.

Analyst Insight

According to Procurement Resource, the Magnesium Chloride price trends are expected to continue behaving in a similar manner for some time going forward since the inventory pressure is still high.
 

Magnesium Chloride Price Trend for October - December of 2023

Asia

In Asia, during the fourth quarter of 2023, the magnesium chloride market displayed a notable steadiness, diverging from the volatility seen in European and North American markets. This stability was underpinned by sustained industrial demand and robust regional market dynamics, particularly in sectors that rely heavily on magnesium chloride. Despite global economic fluctuations, Asian markets managed to maintain equilibrium in magnesium chloride prices, reflecting the region's distinct market environment and adaptive supply chain strategies.

Europe

The fourth quarter of 2023 saw a downturn in the magnesium chloride price trend. The fourth quarter saw a dramatic price curve for magnesium chloride. However, in December, the European Magnesium Chloride market experienced a significant dip, marked by a shift from comparatively better prices in 2023. It was primarily due to a saturation in customer demand, leading to cautious procurement and strategic short positions by buyers.

Influenced by factors like substantial end-user inventories, softened energy prices, and reduced overseas demand during the holiday season, prices declined. Uncertainties in sectors like textiles and paper manufacturing, along with decreased Q4 sales, compelled manufacturers to adjust production. Despite stable supply, market negotiations favoured buyers, reflecting the necessity for strategic adaptation in a declining market.

North America

In North America, particularly in the United States and Canada, the magnesium chloride market in the fourth quarter of 2023 experienced trend similar to Europe's. The market saw fluctuations influenced by global economic conditions and changing industrial demands. These shifts led to strategic adjustments in production and pricing within the market, reflecting a response to the broader global economic environment and the specific needs of the North American region.

Analyst Insight

According to Procurement Resource, the price outlook for 2024 are expected to witness a mixed price and demand sentiments. The prices would see a significant fluctuation throughout the year based on various industries dependent on magnesium chloride.
 

Magnesium Chloride Price Trend for the July - September of 2023

Asia

The third quarter of the year 2023 started on a higher note for the magnesium chloride market trend in Asia. Since the construction sector was picking up in both India and China, the magnesium chloride demands from the cement industries rose consistently.

At the same time, rapid infrastructure development in India incentivized the construction sector, subsequently leading to a persistent rise in the magnesium chloride market. The food and metallurgy sectors also supported the continuous inclination of the magnesium chloride price graph. Overall, positive market sentiments were observed.

Europe

The European magnesium chloride industry also followed in the Asian market’s footsteps as the prices consistently registered rising numbers at the price index here as well. Since the international market prices grew, procurement became expensive for European suppliers, and the downstream demands from the cement and de-icing industries grew throughout the said quarter. Since both the upstream and downstream market dynamics worked in favor of the magnesium chloride price trend, an inclined price curve was witnessed.

North America

The American magnesium chloride market could not behave any differently from the Asian and European markets. Since the global markets were on a rising spree, the same positivity was also reflected in the American magnesium chloride market as well. Owing to the good and regular demands, the magnesium chloride market grew throughout the third quarter of 2023.

Analyst Insight

According to Procurement Resource, the Magnesium Chloride market is projected to grow even more in the coming months since the arriving winter months will call for more magnesium chloride for snow removal purposes; positive market growth is anticipated.
 

Magnesium Chloride Price Trend for the First Half of 2023

Asia

In the first and second quarters of 2023, the price trend of magnesium chloride rose consistently with support from the downstream industries. The major driver of the magnesium chloride market was the fertilizer sector, as the demand for fertilizers along with textile and paper products increased in the region.

The hike in demand promoted trading sentiments in the Asia-Pacific region, and with the depleting level of inventories, the prices of magnesium chloride increased. However, the conditions became challenging in the last months of the second quarter, with lower intake from the major market drivers and a decline in trade from the Chinese manufacturers.

Europe

The price trend of magnesium chloride in the first quarter of 2023 surged as the demand from the fertilizer and construction industries supported the positive movement of the trend. The region during the first quarter also saw a hike in importing and trading charges due to disruptions in the supply chain caused by labor crises in European countries.

However, unlike what was observed in the Asia Pacific region, the price trend of magnesium chloride declined in the second quarter of 2023. Due to the suppressed attitude of the buyers in the region, the trading activities declined significantly, and with sluggish demand from the textile and insulation industries, the prices of magnesium chloride dipped.

North America

In the first half of the first quarter of 2023, the prices of magnesium chloride inclined as the sales of fertilizers and related industries witnessed a positive trajectory. However, from the second half of the first quarter, the swindling condition of the economy, recession-like conditions in the market, and the steeply rising cost of energy proved to be a problem for the magnesium chloride market.

In the second quarter, along with several challenges presented by the economy, the market also faced a high supply of magnesium chloride, causing the level of inventories to rise, and with slow demand, this led to the weak movement of magnesium chloride price trend.

Analyst Insight

According to Procurement Resource, the price trend of Magnesium Chloride is expected to decline due to feeble demand from the end-user industries and rising levels of inventories.

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