Iron Oxide Prices: During the second quarter of 2023 | ChemAnalyst

North America:

Iron oxide prices experienced a decline of more than 19% in the North American market throughout the second quarter of 2023. The market sentiment remained bearish during this period. Demand from the downstream paint and coating industry remained weak as construction activities displayed muted performance. Key market players reported a decline in the sales of surface coating products. The prevailing uncertainties regarding the economic recovery persisted, with rising energy costs and a PMI depreciation of over 2 points in the second quarter. This challenging outlook dampened purchasing activities, further contributing to the depreciation of iron oxide prices. Reduced purchasing activities eventually led to the accumulation of excessive inventories amidst sluggish demand. In order to clear existing stocks, they had to be sold at negotiable prices and reduced profit margins, further exacerbating the decline in prices. By the end of the second quarter of 2023, the final cost of iron oxide was assessed at USD 1657/MT CFR Houston.

APAC:

The Asian market witnessed a bearish trend in the iron oxide prices throughout the second quarter of 2023, with prices declining by more than 20%. Key market players reported a profit decline of over 26% compared to the first quarter. Demand remained subdued as the construction industry failed to recover as initially anticipated. This downturn also adversely affected the demand for downstream paint, coating, and concrete industries. Construction activities slowed across a significant portion of Asia due to the ongoing monsoon season, further contributing to negative sentiment surrounding the commodity’s procurement and subsequently pushing prices down. The halting of construction activities resulted in substantial inventories that had to be sold at discounted prices, leading to diminished profit margins. By the conclusion of the second quarter of 2023, the iron oxide price was assessed at USD 1400/MT FOB Shanghai.

Iron Oxide Prices: https://www.chemanalyst.com/Pricing-data/iron-oxide-1531

Europe:

Within the European market, iron oxide prices followed a bearish trend, declining by more than 20%. The recessionary conditions prevalent across Europe subdued supplier purchasing enthusiasm, combined with a sluggish recovery in construction activities as indicated by a PMI drop to 40.8 at the end of the second quarter. Sales for key market players declined, with profits diminishing by over 14% compared to the previous quarter. The weak recovery of the construction industry had a cascading impact on the demand for the paint and coating industry. Fluctuations in the water levels of the River Rhine caused supply disruptions, potentially driving prices up, but these disruptions were overshadowed by weak demand from consumers, as the real estate industry’s performance remained lackluster. High inflation rates, reaching 6.4% by the end of the second quarter of 2023, further dampened demand from the construction industry and compounded poor international demand. As the second quarter came to a close, iron oxide prices were assessed at USD 805/MT FOB Hamburg.

South America:

In South America, iron oxide prices demonstrated a bearish trend throughout the second quarter of 2023, with prices declining by over 23%. Construction activities were notably subdued, and key players reported a decrease in commodity sales compared to the previous quarter due to the pessimistic economic outlook for the region. Demand from downstream construction, paint, and coating industries also appeared weak. Fears of inflation surpassing 4% and energy cost increments hindered purchasing activities in the downstream sectors. Both international and domestic demand remained lackluster due to the poor performance of the construction, paints, and pigment industries in the second quarter of 2023. The region reported ample inventories without disruptions in the supply chain, leading to inventory accumulation in the face of diminished demand. These excess inventories had to be sold at negotiable prices, further driving down the commodity’s prices. Throughout the second quarter of 2023, iron oxide prices experienced a decline, ultimately settling at a low of USD 1432/MT FOB Santos.