Brazil Sodium Chlorate Market Falls on Abundant Supply and Weak Demand
Brazil Sodium Chlorate Market Falls on Abundant Supply and Weak Demand

Brazil Sodium Chlorate Market Falls on Abundant Supply and Weak Demand

  • 19-Dec-2024 2:00 AM
  • Journalist: Bob Duffler

Since the previous month, Sodium Chlorate prices in Brazil saw a decline, influenced by abundance of availability of the product and stable feedstock prices. Weak demand from industries such as pulp and paper put pressure on prices, while rising operational costs, logistical issues, and broader economic uncertainties hindered recovery. High interest rates and material shortages further constrained prospects for the coming year.

In Brazil, however, the Sodium Chlorate market saw positive developments. Kemira announced an expansion of its Sodium Chlorate manufacturing facility in Ortigueira, Brazil, increasing production capacity by over 10%. This expansion, set to be operational in late 2024, aims to strengthen supply for the bleached pulp market in South America. Similarly, Nouryon launched a new integrated facility in Ribas do Rio Pardo, Mato Grosso do Sul, producing hydrogen peroxide, Sodium Chlorate, and chlorine dioxide. This expansion will enhance Nouryon's Sodium Chlorate capacity in the region, addressing growing demand from the pulp and paper sector.

In December 2024, Brazil's Industrial Entrepreneur Confidence Index (ICEI) continued its decline, marking the third consecutive monthly drop. Expectations for sectoral performance saw a notable decrease, reflecting reduced optimism about future business conditions. Broader economic outlooks also weakened, highlighting growing pessimism regarding Brazil’s overall economic environment. Additionally, the assessment of current business conditions and the state of the Brazilian economy deteriorated, suggesting a challenging environment for industries such as Sodium Chlorate downstream for pulp and paper, which may face ongoing uncertainty and subdued demand in the coming months.

In a broader sense, Sodium Chlorate downstream pulp and paper sector, Brazil made significant strides with new investments. Valmet secured a contract to supply the largest single-phase pulp mill globally in Inocência, Mato Grosso do Sul, set to be completed in 2027. Suzano also began operations at a new pulp production line in Ribas do Rio Pardo, increasing its capacity by over 20%. Additionally, Brazil's pulp and paper sector is integrating blockchain technology to comply with the European Union's Deforestation Regulation, aiming to trace the origins of exported products and ensure sustainability.

As per ChemAnalyst, In December 2024, the Sodium Chlorate market is expected to grow steadily, driven by strong demand from the pulp and paper industry. The global market is forecasted to expand at a moderate pace, with Asia Pacific and Latin America showing higher growth rates due to ongoing industrial development. North America and Europe will continue to be key markets, though with slower growth. Economic factors, energy costs, and technological advancements in production are likely to influence Sodium Chlorate market trends. Overall, the market is set for continued growth, supported by consistent demand in key industries.

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