Unlike China, Bentonite prices Inclines in the US, India and Türkiye in early June 2024

Bentonite prices have showcased a decline in China during early June 2024, while robust global demand strengthened prices in the USA, India, and Türkiye. In India prices in the first half of June rose by 1.1% to USD 53.33/MT Ex-Bhuj (India). While in USA, prices moved to USD 250/MT DEL Wyoming (USA) displaying a 2% change from previous month. In Türkiye there is a significant increase of 4.4% in Bentonite prices and prices touched USD 118/MT FOB Mersin (Türkiye). There were several factor affecting these pricing dynamics during this period.

In India, Bentonite is high in demand across various sectors. Recently, India's state-run iron ore miner, NMDC, has planned to double its production capacity. This move is strategically aligned with the escalating demand for pellets and can be seen as a contribution to rising Bentonite demand. Beyond iron and steel sector, Bentonite finds extensive use in environmental applications, particularly in sealing liners for waste deposits. The recent approval of 4,800 composting plants and 4,500 material recovery facilities (MRFs) by the Centre for West Bengal under the Swachh Bharat Mission 2.0 is expected to further boost the demand for Bentonite.

Bentonite, a critical component in foundry applications, continues to drive advancements in Türkiye industrial landscape, particularly within the foundry sector where it plays a pivotal role in enhancing production capabilities and product quality. The recent redesign of Atik Metal's foundry plant in Aliaga stands out as a significant development in the industry. Managed by VHV Anlagenbau GmbH, this project represents one of the largest orders in the 30-year history of the company. The modernization initiative aimed to install an advanced foundry system designed to address increasing market demands for larger castings.

Bentonite continues to drive advancements across multiple sectors in the United States, from iron ore pelletizing to water engineering projects. U.S. Steel recently marked a significant milestone with the launch of its direct reduced (DR)-grade pellet production facility at the Minnesota Ore Operations-Keetac Plant adding to Bentonite’s demand. Manufacturers in foundry sector like Manufacturer’s Brass and Aluminum Foundry (MBAF) and G&W Electric have leveraged Industry 4.0 technologies to improve safety, efficiency, and quality in their foundry processes. These investments underscore the sector’s commitment to technological innovation and operational excellence, highlighting the reason for Bentonite’s price rise.

In China, prices of Bentonite have declined by 3 USD marking a change of 2.4% to USD 122 FOB Tianjin (China). Bentonite, a critical material in various industrial processes, faces evolving challenges in China's dynamic economic and logistical landscape, particularly within the iron ore and foundry sectors. China is experiencing a downturn in demand amid rising inventories at Chinese ports. The seasonally slowing demand for steel products is expected to further reduce consumption of iron ore, consequently impacting the demand for Bentonite used in iron ore pelletizing. This trend reflects broader economic adjustments and market fluctuations affecting the industrial minerals sector. The higher transportation costs have exerted downward pressure on Bentonite prices in China. This decline underscores the market's sensitivity to external supply chain disruptions and logistical inefficiencies impacting price stability.