An unfortunate event occurred at the Deepak Nitrite production facility yesterday, where a huge explosion was heard by hundreds of people. Later this explosion led a fire to break out in the factory, where hundreds of spectators observed a big smoke cloud coming out of the factory. ChemAnalyst has analysed the overall scenario and speculated the effect of this big explosion in the Indian market.

Gujarat based production facility of Deepak Nitrite manufactures multiple products, including Sodium Nitrite and Sulphates, for the Indian market. As per the ChemAnalyst data, it was observed that Sodium Nitrite prices have been tumbling in the Indian market till the last week of May 2022, which is now anticipated to trace an uptrend in forthcoming months.

The anticipation has been done based on current demand fundamentals for the products from the downstream industries and the latest interviews done with some market players. Multiple respondents have concluded the same thing that the prices of Sodium Nitrite are likely to trace an uptrend in the near term across the Indian market as a repercussion of this accident.

ChemAnalyst has predicted that the prices of Sodium Nitrite might go up by 12% by the end of this month in the Indian market. However, consumers are also anxious about the availability of Sulphates in the coming months, while they have already started looking forward to better routes for imports if any significant disturbance occurs in future.

Recovering the Chinese economy after the devastating wave of the pandemic has provided some relief to the traders, as India Imports a hefty amount of Sodium Nitrite from China. Thus, it would be interesting to see the actual pricing dynamics of these commodities in the coming weeks across the domestic market.