Global Sodium Bicarbonate Values are Probable to Rise as Chinese Golden Week Approaches
- 29-Sep-2022 5:26 PM
- Journalist: Francis Stokes
Due to the Golden Week taking place from 1 to 7 October 2022 in China, the price of Sodium Bicarbonate soared during the last week of September and will remain elevated in the upcoming month. The majority of factories will be closed throughout China for the Golden Week, which also includes China National Day, and there will be work halts in Chinese ports. There will not be much space available in port, and both ocean and air freight prices will be high as importers scramble to get their products from China to the U.S. before the holiday's closures.
The supply chain from China is affected due to a rush from manufacturers to speed up their productions and have products ship out from China before workers go home for the holidays, and factories shut down or reduce their manufacturing capacity significantly, which usually creates a sudden surge of demand.
In Europe, the price of Sodium Bicarbonate has also increased due to the effect on export. The disruptions from China's Golden Week will delay the peak season export cargo from China to Europe. As a result of the cargo ships' detour to other ports in Europe and the United Kingdom, Bremerhaven, Hamburg, Rotterdam, and other significant port hubs may see increased congestion. The proprietary data shows the container availability index is already at a very high level. Container availability is high due to low water levels caused by drought, which all contribute to a looming problem for European traders to get their imports on time.
The Golden Week will also impact the Asia-Pacific region as they majorly import from China, and the prices for Sodium Bicarbonate will be increased, backed by the trade lane, which is traditionally particularly busy completing orders for the holiday season.
According to the ChemAnalyst database, the domestic market of Sodium Bicarbonate will see greater supply constraints due to the rising price of sodium bicarbonate, impacting the food and beverage and nutraceuticals industries.
