Santos (Brazil): In Brazil, Sodium Chlorate prices have risen this month due to high demand from Sodium Chlorate’s downstream industries and insufficient inventories, particularly affecting the paper industry. Eldorado Brazil’s 1Q24 financial statement reports pulp production at 449 thousand tons, down 3.2% from 4Q23 but up 19.7% from 1Q23 due to scheduled maintenance in the previous year. The next maintenance is scheduled for 3Q24. Sales volume was 451 thousand tons, down 3.8% from 4Q23 but up 16.5% from 1Q23, with record low inventories.

Crude oil costs are expected to rise, increasing Sodium Chlorate production costs. Eldorado's average net price was USD 626/MT, up 13%, with quarterly sales of 451 thousand tons, 4% below the previous quarter, focusing on profitability and market expansion. Furthermore, demand from the international market, like in 4Q23, tightened the pulp market regionally, with Europe facing logistical issues and low inventory. North America's toilet paper market remained strong, while Sodium Chlorate downstream printing paper demand continued to decline.

Domestic production remained steady to meet the needs of Sodium Chlorate downstream industries but decreased compared to the previous quarter due to sluggish demand from the Sodium Chlorate  downstream pulp and paper sectors. Companies have successfully increased prices of domestic inventories. Eldorado Brasil reported pulp production at 449 thousand tons in 1Q24, down 3.2% from 4Q23 but up 19.7% from 1Q23 due to last year's scheduled maintenance. The next maintenance is planned for 3Q24. Sales volume was 451 thousand tons, down 3.8% from 4Q23 but up 16.5% from 1Q23, with record low inventory levels, thus leading to a rise in Sodium Chlorate prices.

Sodium Chlorate downstream industries such as pulp and paper increased on a month-on-month basis, but demand remained inadequate in a year-on-year comparison, leading to fewer inquiries. Brazil's Eldorado reported in its 1Q24 financial statement that net revenue totalled Brazilian Real 1,425 million (USD 277 million), up 8.5% from the previous quarter due to the rebound in pulp prices but down 7.2% from 1Q23. The decline in pulp prices over 2023 explains this drop in Sodium Chlorate prices, slightly offset by higher sales volume. The average price in 1Q24 was USD 626/MT, up 13% from USD 553/MT in 4Q23, but down 22% from USD 798/MT in 1Q23. The cost of goods sold rose by 1.8% from 4Q23 and 25.2% from 1Q23 due to higher sales volume. Gross profit was Brazilian Real 760 million (USD 14.8 million), up 15.2% from 4Q23 but down 24.3% from 1Q23, with a gross margin of 53.3%, compared to 50.3% in the previous quarter. It is expected that the prices of Sodium Chlorate will increase amidst the rise in demand from the downstream pulp and paper industry.