Magnesium Acetate Tetrahydrate Prices Depreciate in the US Market Amidst Ample Supply

In recent weeks, the US market has witnessed a significant downturn in the prices of Magnesium Acetate Tetrahydrate, with various factors contributing to this depreciating trend. Notably, a confluence of factors, including lower demand, sufficient availability of Citric acid among market players, and a drop in raw material Acetic Acid prices in the domestic market, has led to this challenging scenario for Magnesium Acetate Tetrahydrate.

The decreasing trend is not confined to the US alone; the Chinese market, a major exporter of Magnesium Acetate Tetrahydrate, is also experiencing a price decline. The raw material Acetic Acid prices in China have shown a downward trajectory, attributed to lower cost support from the feedstock Methanol. This week's pricing dynamics were influenced by reduced demand from downstream industries like Ethyl Acetate and Butyl Acetate, which are primarily used in the construction industry. Despite these challenges, there have been no significant disruptions in the supply chain.

The downstream demand for Magnesium Acetate Tetrahydrate has been sluggish, with minimal purchases following the subdued demand. The market trading atmosphere reflects light activity, with manufacturers facing high inventory pressure, leading to continuous downward adjustments in quotations of Magnesium Acetate Tetrahydrate. The stability of the Acetic Acid market in China remains cautious, with a wait-and-see approach due to poor market sentiment, exacerbated by low demand from downstream industries and the ample availability of Magnesium Acetate Tetrahydrate among suppliers.

Similarly, the US market reports low prices for Magnesium Acetate Tetrahydrate, driven by decreased demand from downstream industries. The US Federal Reserve's indication of a 5.5% interest rate hints at lower demand from these industries, potentially prompting an increase in interest rates to combat inflation. This could result in higher borrowing costs for businesses, leading to a reduction in consumer prices. Additionally, production costs remain lower for Magnesium Acetate Tetrahydrate, further contributing to the downward pressure on prices. The international market demand remains subdued, and many inventories are being offered at reduced prices. Despite these challenges, no significant disruptions are reported in the supply chain. Furthermore, the colder weather in November may decrease demand for certain goods and services, including Magnesium Acetate Tetrahydrate, exacerbating the downward pressure on prices.

Looking forward, according to ChemAnalyst, it is expected that both Acetic acid and Magnesium Acetate Tetrahydrate prices are likely to experience improvements. The anticipated enhancement in the market situation for the raw material acetic acid in the coming weeks is expected to impact the prices of Magnesium Acetate Tetrahydrate as well. Additionally, the rise in production costs will contribute to providing cost support for Magnesium Acetate Tetrahydrate. However, as we move into the latter part of November, an anticipated increase in demand from end-users, driven by seasonal factors, has the potential to push prices upward. Buyers are advised to evaluate their inventory needs during periods of lower prices carefully.