The U.S. Ulexite market experienced a price surge in December, driven by a confluence of factors. Domestically, demand witnessed a notable upswing, while overseas markets also exhibited increased appetite for the mineral. This heightened demand coincided with growing concerns about potential labor disruptions at U.S. ports. Anticipating potential port strikes, market participants accelerated their procurement activities towards the end of the year, further bolstering demand and consequently driving up Ulexite prices.

Ulexite prices in the USA increased by 0.8% in December. Demand from the water treatment sector rose, while construction industry slowdowns, particularly in multi-family projects, reduced Ulexite procurement from glass industries. Despite these challenges, overall construction spending remained flat in December compared to November, though up 3.0% year-over-year. Expectations for a slight recovery in 2025 are anticipated as mortgage rates ease. Early December saw increased oil drilling activity, boosting Ulexite demand from this sector. The US oil and gas rig count rose significantly in early December before stabilizing.

President elect Trump's confrontational approach threatens to strain relations with both Mexico and Canada, potentially jeopardizing the broader North American economic partnership. The proposed tariffs also appear to conflict with the USMCA—the trade agreement between the U.S., Mexico, and Canada that was negotiated during the Trump administration.

Retaliatory actions from Mexico or Canada could result in price increases for metals and minerals traded with the U.S., including Ulexite. Anticipating these consequences, buyers were observed stockpiling supplies ahead of Trump’s inauguration in January.

Ulexite importers from Mexico and Canada scrambled for faster procurements before the festive period, leading to increased demand. They feared another strike in the USA port, which could have skyrocketed prices. The Port of Savannah has experienced a significant increase in activity and congestion, leading to substantial delays and logistical challenges for ships and traders alike. Construction activity due to the Savannah Port Expansion had led to increased port delays. Additionally, exporting companies scrambled for backup plans as another port strike loomed.

The U.S. Ulexite market is expected to experience significant growth in the near term. While domestic demand remains robust, driven by sectors like water treatment and oil & gas, potential disruptions from the new administration's trade policies pose significant risks. The threat of increased tariffs and strained relations with key trading partners, Mexico and Canada, could lead to supply chain disruptions and price increases for Ulexite. Furthermore, the ongoing port congestion at Savannah, coupled with the ever-present threat of labor strikes, will continue to exert upward pressure on transportation costs and potentially impact Ulexite prices. ChemAnalyst anticipates that the industry is set for continuous growth, with prices expected to rise steadily.