Magnesium Price Trend and Forecast

Magnesium Regional Price Overview

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

Magnesium Price Trend for the First Half of 2024

Asia

Across Asia, particularly in China, the magnesium market faced volatility, characterized by temporary economic slowdowns due to the Lunar New Year and Spring Festival in February. During this period, there were significant delays in shipments and production, affecting businesses reliant on Chinese suppliers.
 

Magnesium Price Chart

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While factories resumed operations towards the end of February, supply remained insufficient due to labor shortages, lower production momentum, and limited availability of feedstock materials, including stearic acid and magnesium. This scarcity contributed to upward price pressure for magnesium throughout the region, particularly for the oxide variant. The market was further impacted by geopolitical tensions, which disrupted shipping lanes and increased freight charges, influencing the overall price trajectory across Asia.

Europe

The European magnesium market experienced mixed trends during the first half of the year. While magnesium oxide prices generally trended upward due to rising demand from the construction sector and supply chain challenges, the prices of other salts were pressured downward by oversupply and competition. The region was affected by heightened transportation costs and disruptions in global shipping, exacerbated by geopolitical tensions. Despite these challenges, certain sectors, such as pharmaceuticals and animal feed, continued to drive demand for magnesium, sustaining its market activity.

North America

In the United States, magnesium prices exhibited an overall upward trend throughout the first half of 2024. This was primarily driven by ongoing global supply chain disruptions and increased demand from various industries, including automotive manufacturing and the pharmaceutical sector. Magnesium oxide, in particular, saw rising prices due to its critical role in construction, agriculture, and environmental applications.

The high consumption levels as an antacid in food and pharmaceutical applications also contributed to the price increases. Meanwhile, the market for magnesium stearate displayed a different pattern, with prices declining in response to oversupply and intense competition among manufacturers. Elevated freight charges, resulting from geopolitical tensions in regions such as the Middle East, added to the overall cost pressures and further influenced the market dynamics in the region.

Analyst Insight

According to Procurement Resource, the price trend of Magnesium is expected to move slightly northwards in the forthcoming months as the global trading industries are likely to struggle under the influence of rising global geopolitical tensions.
 

Magnesium Price Trend for the Second Half of 2023

Asia

Magnesium prices were observed to be oscillating throughout the said period of H2’23. Q3 began with a conflicting run between the upstream and downstream costs. With a rise in crude oil prices and feedstock magnesium oxide prices, the upstream costs were higher throughout the third quarter, whereas the downstream demands mostly remained humble with occasional ups.

A similar situation was seen in the year ending quarter as well since the situation didn’t change much from the consumption’s viewpoint. Inventories now were well capable of catering to the impending demands. Thus, the price trend vacillated within a very confined limit. Freight interruptions during this time hurdled the market a little; however, overall, a stable market performance was experienced in the Asian region.

Europe

The European magnesium market struggled a little more compared to the Asian market to sustain its momentum during the said period. The consumption patterns were tepid for the majority of the said span, while the upstream attributes were also not as supportive on the cost front. Primarily, a weaker performance from the food, pharma, and cosmetic industries drove the price trend downhill. Even though there were several upticks in the price graph, the overall curve was weak.

North America

The American magnesium industry was influenced by its Asian counterpart; prices were observed to be titillating throughout the entire period. Since both the upstream and downstream factors were behaving differently, the prices remained tugged between several driving factors. The freight disturbances of the fourth quarter affected the market severely by hurdling the anticipated growth during this time. However, an overall varying price trend was witnessed.

Analyst Insight

According to Procurement Resource, Magnesium prices are expected to continue behaving in a similar manner in the coming months as well. Given the current supply and demand dynamics, further fluctuations are projected in the price trend.
 

Magnesium Price Trend for the First Half of 2023

Asia

The prices of magnesium initially surged with the revival of market activities after a stretch of the Lunar New Year holidays and the removal of COVID restrictions. The rise in demand due to increased consumption rates and positive movement of market momentum helped the price incline. However, after this initial incline, the trend took a bearish turn as the import rates declined both in the domestic and international sectors. In the second quarter, however, the price showed positive momentum and inclined amid the receding level of inventories. However, from June, the supply-demand statistics disrupted the growth of magnesium prices.

Europe

The declining trend in the prices of magnesium was caused by a fall in the market dynamics of upstream and downstream industries in the first quarter of 2023. During the initial months of this quarter, the stability in the demand and availability of stocks balanced the prices, but soon, the supply levels surpassed the rates of procurement, causing a downfall in the price trend of magnesium.

The first half of the second quarter was in favor of market activities of magnesium as the trend surged with uprising domestic inquiries and improvement in trading activities. The second half of this quarter, however, failed to follow the same trend due to the plunging economy and gradually declining demand for magnesium.

North America

The positively moving demand segment of magnesium in the first quarter supported the rise in the price trend of magnesium initially, but soon, the consumption rates started to decline, and the overall market sentiments became weak, hampering the growth of magnesium prices.

The second quarter also showed an incline in the trend initially with the upswing in the upstream industries, but from May and June, the weak consumption of magnesium observed in the pharmaceutical, cosmetic, and rubber industries pushed the prices of magnesium in the negative direction.

Analyst Insight

According to Procurement Resource, the price trend of Magnesium is expected to follow a downward trajectory as the interest of end-user industries is dependent upon the feebly moving global economy.

Procurement Resource provides latest prices of Magnesium. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.