Magnesium sulfate heptahydrate

Market Intelligence on Magnesium Sulfate Heptahydrate (MgSO4·7H2O)

I. Price Trends
1. Domestic Market:
- East China: Price range is 850-950 RMB/ton, an increase of approximately 20-30 RMB/ton compared to last week, representing a rise of 2.2%-3.5%.
- South China: Price range is 900-1000 RMB/ton, an increase of 30-40 RMB/ton compared to the previous week, representing a rise of 3.4%-4.7%.
- North China: Price range is 820-920 RMB/ton, an increase of 15-25 RMB/ton, representing a rise of 1.8%-2.9%.
2. International Market:
- Southeast Asia: FOB price is 150-165 USD/ton, an increase of 5-10 USD/ton compared to last month, representing a rise of 3.3%-6.5%.
- Europe: CIF price is 180-200 EUR/ton, an increase of 10-15 EUR/ton, representing a rise of 5.9%-8.1%.

II. Supply Situation
1. Domestic Production Capacity:
- Recently, the overall operating rate of domestic magnesium sulfate heptahydrate production enterprises is around 75%, an increase of 5 percentage points compared to last month. Some enterprises have resumed production after completing equipment maintenance, leading to an increase in market supply.
- Regarding new production capacity, one enterprise in Shandong Province plans to commission a new production line next month, with an estimated new annual capacity of 20,000 tons.
2. Import Situation:
- The import volume this month is approximately 5,000 tons, an increase of 800 tons compared to last month. The main countries of origin are Russia and Turkey. Imported products mainly meet the needs of the high-end market and have a limited impact on the domestic mid-to-low-end market.

III. Demand Situation
1. Agricultural Sector:
- With the spring fertilization season approaching, demand for magnesium sulfate heptahydrate as a fertilizer additive in the agricultural sector is gradually increasing. It is expected that the demand in the agricultural sector will increase by 15%-20% month-on-month this month.
- Farmers in some regions are becoming increasingly aware of magnesium sulfate heptahydrate, and its scope of application is expanding, further driving demand growth.
2. Industrial Sector:
- In industries such as chemical and building materials, demand for magnesium sulfate heptahydrate as a raw material remains stable. Among them, demand in the chemical industry for producing other magnesium salt products accounts for approximately 30% of the total demand.
- Demand in the building materials industry is mainly used for the production of fire-resistant boards, lightweight partition boards, and other products, with no significant changes in recent demand.

IV. Cost Factors
1. Raw Material Costs:
- The main raw materials for magnesium sulfate heptahydrate are magnesium oxide and sulfuric acid. Recently, the price of magnesium oxide has been stable at 1,200-1,300 RMB/ton; the price of sulfuric acid has risen slightly by approximately 5%, to 400-500 RMB/ton. The slight increase in raw material costs provides certain support for the price of magnesium sulfate heptahydrate.
2. Energy Costs:
- Coal prices have fluctuated little recently, maintaining at 800-900 RMB/ton. Electricity prices have also remained stable, with no significant changes in enterprise energy costs.

V. Analysis and Judgment
1. Short-term:
- In terms of supply, although the resumption of production by some enterprises has increased market supply, the rapid growth in spring agricultural demand will provide strong upward momentum for prices. It is expected that magnesium sulfate heptahydrate prices will continue to rise in the short term, with an increase of approximately 3%-5%.
2. Medium-term:
- With the gradual release of new production capacity, market supply will further increase. If the growth in agricultural demand slows down, the market supply-demand relationship may tend toward balance, and the price increase will gradually narrow. However, considering the support from raw material costs, the possibility of a significant price drop is relatively small.
3. Long-term:
- In the long term, the market demand for magnesium sulfate heptahydrate is expected to maintain a stable growth trend. With the improvement of environmental protection requirements and continuous progress in industry technology, product quality and added value will continue to increase, which is conducive to price stability and appreciation.

VI. Forecast
1. Price Forecast:
- Over the next three months, the domestic price of magnesium sulfate heptahydrate is expected to fluctuate between 900-1,050 RMB/ton. International market prices will be influenced by factors such as exchange rates and trade policies, but will generally maintain an upward trend. The FOB price in Southeast Asia may range between 160-180 USD/ton, and the CIF price in Europe may range between 190-220 EUR/ton.
2. Supply and Demand Forecast:
- In terms of supply, market supply will gradually increase with the commissioning of new production capacity and the improvement of enterprise operating rates. In terms of demand, agricultural demand will peak in spring and then gradually decline, while industrial demand will maintain stable growth. It is expected that the market supply-demand relationship will gradually become looser in the future, but a serious oversupply situation is unlikely to occur.