Increasing Sodium Chlorite prices in APAC amid firm demand from textile industries

At the beginning of the 2024 final quarter, the Sodium Chlorite market showcased bullish sentiments in China driven by an increase in demand from downstream industries and stressed availability of supplies linked to weak production rates. In China, Sodium Chlorite demand was firm in the textile industries. In the first nine months of this year, China's total foreign trade increased by 5.3% year-on-year in yuan terms. According to the General Administration of Customs, the goods trade volume reached 32.33 trillion yuan (approximately USD 4.57 trillion) from January to September. During this period, exports grew by 6.2% year-on-year, totaling 18.62 trillion yuan, while imports rose by 4.1% year-on-year to 13.71 trillion yuan. Simultaneously, Sodium Chlorite demand was also firm from the food sector and there was a 1% rise in the food CPI Index in September 2024. Additionally, the manufacturing rates were firm, and China's manufacturing purchasing managers' index (PMI) increased in October 2024 from the previous month, indicating an expansion in manufacturing activities in the country.

At the same time, the Sodium Chlorite manufacturing rates were moderate in the key regional exporter China. There were a stressed availability of feedstock Sodium Chloride supplies due to an increase in demand from sodium formate manufacturers for De-icer or anti-icer products for the winter season. It raised the cost support on the production costs of Sodium Chlorite. Consequently, production rates were low, and supply declined to the importers. Additionally, the Far East Exports sub-index experienced a notable decline in October 2024, marking a significant drop from the previous month. However, despite this decrease, the sub-index remains much higher than it was a year ago, reflecting an overall positive trend. The sharp increases in the global weighted average spot rate earlier in 2024 were driven by Far East Exports.

According to ChemAnalyst data sources, Sodium Chlorite 31% FOB Qingdao prices in China hovered at USD 590/MT at the end of October 2024 after witnessing an increase of 1.7% in last month’s quotations.

As per the estimation, the Sodium Chlorite price trend is likely to remain steady in the APAC region and prices will increase further in the Asian market. Sodium Chlorite demand in the textile sector is expected to rise during the mid-quarter, with buyers likely increasing their stocking practices ahead of the peak winter season. However, Sodium Chlorite production could face challenges due to a weak supply of feedstock Sodium Chlorate, which may hamper manufacturing processes. Additionally, Sodium Chlorite demand from the food sector is anticipated to grow, contributing to further market dynamics. The rise in feedstock Sodium Chlorate prices could lead to an increase in operational costs, impacting overall production costs. As a result, Sodium Chlorite production levels in the country may remain moderate during this period.