The demand for Sodium Ascorbate in the United States is anticipated to remain robust in the last quarter of 2024, influenced by several significant factors reshaping supply and demand dynamics. Firstly, inventory levels are expected to decline sharply due to strong consumption by end-users in both domestic and export markets. This reduction in supply, combined with rising demand from key sectors such as pharmaceuticals and nutraceuticals, is likely to exert upward pressure on prices.

Additionally, China recently experienced its most severe typhoon in 75 years, which made landfall on the east coast. Reports indicate that vessels are now facing delays of 36 to 60 hours at the port of Shanghai. Several ports, including Ningbo and Shanghai, have announced the suspension of container operations. The disruption of port activities caused by the typhoon has led to supply chain bottlenecks, resulting in increased transportation costs, longer lead times, and inventory shortages.

Persistent global logistics challenges continue to cast a long shadow over commodity supplies, including Sodium Ascorbate. These challenges not only support the current price levels but also provide a foundation for potential further increases for Sodium Ascorbate. The costs associated with rerouting cargo, warehousing goods for longer periods, and managing delayed shipments were passed on to consumers, contributing to inflationary pressures, and resulting in higher export prices for Sodium Ascorbate. Lastly, cost support from the raw material market additionally supports the upward trajectory as feedstock vitamin C prices rose considerably during this month as well. Collectively, this persisted in an upward trend in Sodium Ascorbate across the key importers. While, in anticipation of the recent Golden Week holiday in China a key exporter, which commenced on October 1, is likely to further exacerbate supply constraints, resulting in inventory shortages among U.S. and European importers. Furthermore, the weakening U.S. dollar against the Chinese yuan is expected to push up import costs, fueling anticipated price hikes for Sodium Ascorbate and related products.

In addition to these factors, the announcement of new U.S. tariffs on Chinese imports, valued at $18 billion, is poised to alter trade dynamics significantly, potentially driving prices for Sodium Ascorbate even higher as costs are passed down the supply chain. Logistics issues are also projected to complicate the supply chain, with rising ocean freight rates and increased fuel costs contributing to upward price momentum for Sodium Ascorbate. These logistical challenges are anticipated to impede timely deliveries, resulting in an even tighter supply in the market.

Overall, the convergence of declining inventory levels, increasing demand from key industries, and external factors such as tariffs and logistical challenges indicate a robust market outlook for Sodium Ascorbate in the final quarter of 2024. Participants in the industry are encouraged to remain vigilant as they navigate these market changes and prepare for potential price escalations resulting from sustained demand and constrained supply. The evolving landscape will require proactive measures to mitigate risks associated with price volatility for Sodium Ascorbate and supply shortages, underscoring the importance of strategic planning and adaptability in this competitive market.