Trade Disruptions and High Inventories Continue to Weigh on Magnesium Hydroxide Prices in US
- 16-May-2025 4:15 PM
- Journalist: Phoebe Cary
According to ¹û½´ÊÓÆµ, Magnesium Hydroxide prices in the US fell in the first half of May 2025 after a big drop in April. Prices dropped slightly in the early part of May due to continued oversupply and trade disruptions that had already started to impact the market last month.
- Magnesium Hydroxide prices in the US decreased in early May due to oversupply and lower import costs.
- High inventory from April’s buying led to decline in new Magnesium Hydroxide purchased.
- Cheaper Chinese exports forced domestic Magnesium Hydroxide suppliers to lower prices.
- Weak global trade and falling freight rates added to the Magnesium Hydroxide price decline.
- Demand is weak and exports are limited so Magnesium Hydroxide prices will stay low.
April was a big correction month, with Chinese export offers dropping sharply due to oversupply and deflation. US importers took advantage of the lower international prices of Magnesium Hydroxide and bought in bulk at a discount. This influx of cheaper imports forced domestic suppliers to lower their prices to stay competitive and the price dropped further.
Heading into May, the pace of the decline slowed but the market was still under pressure. Inventories of Magnesium Hydroxide were high across the suppliers as buyers had bought ahead in April in anticipation of trade barriers and tariffs. This front loading of purchases meant there was no fresh buying in May and the transactional activity was subdued.
Meanwhile international trade was quiet. Container traffic from China continued to decline due to weak global demand and order cancellations. Falling freight rates added to the lower landed costs and Magnesium Hydroxide prices continued to drop.
On the domestic front, while the U.S. Manufacturing Purchasing Managers’ Index (PMI) showed some improvement, underlying business sentiment was cautious. Concerns over rising input costs, material shortages, and declining export orders tempered optimism. The decline in external demand—particularly in overseas markets affected by tariffs and a loss of competitiveness—further limited export volumes of Magnesium Hydroxide.
Demand was soft in early May. Core sectors like pharma and healthcare provided some stability to domestic consumption of Magnesium Hydroxide but overall demand was weak. Many suppliers were focusing on inventory management rather than new purchase cycle and hence procurement volumes were down across the board.
According to market experts, Magnesium Hydroxide prices in the United States are expected to face continued downward pressure in the second half of May, driven by persistent supply overhang, tepid demand conditions, and ongoing trade uncertainties.