The demand from importing European regions tends to increase within the German market from fertilizer and other soil amendments utilization. Sodium Chlorate was being less stockpiled in the German market with the rise in product utilization. Long-term contract negotiations for Sodium Chlorate are complex because of limited demand and high freight rates.

The prices of Sodium Chlorate increased in the German market, with prices ranging at USD 1070/tonne FD Hamburg with a monthly escalation of 18.9% as recorded by ChemAnalyst pricing team data. The downstream demand from the herbicides and pharmaceuticals market was observed to be rising in the regional market affecting the market sentiments.

The prices of feedstocks such as Sodium Chloride and Sulphuric Acid are increasing in the German domestic market, putting cost pressure on the merits of Sodium Chlorate within the European region and affecting market sentiments. One of the main drivers of fertilizer prices is fluctuation in crude oil prices, which puts cost pressure on Sulphur prices, thus indirectly affecting Sodium Chlorate. Sulphate-based fertilizers, estimated to contribute a significant portion to crop growth, are affecting the costs of Sodium Chlorate.

The current dramatic global distortions, business-threatening high energy prices, and disrupted supply chains are affecting medium-sized companies which produce Sodium Chlorate, causing them to face significant challenges and burdens. As part of its efforts to address the due diligence negligence in supply chains by brands, Germany is less than two months away from finalizing its act on corporate due diligence obligations in supply chains. Supply chain policies are increasingly becoming a trap for medium-sized companies that need help to escape.

The increased spot offers due to input price inflation for Sodium Chlorate increased the buyers’ sentiments during the week. Europe’s largest economy was buffeted by the sharp increase in energy prices affecting the market sentiments of Sodium Chlorate among the major manufacturing firms. The surge in input cost and output charges has pushed the major players to improve their quotations, as said by the traders.