In August, Sodium Chloride prices experienced a global decline, influenced by several factors. The decrease was primarily due to a drop in demand from end-user industries combined with an abundant market supply. As a result, market participants lowered their prices in response to these uncertainties, leading to a generally bearish market sentiment.

In India, the decline in Sodium Chloride prices is attributed to a slowdown in the country's manufacturing sector. Growth within the sector has slowed, with both production and sales increasing at their slowest rates since January 2024. This deceleration is linked to shifting consumer preferences and heightened competitive pressures, which have undermined business confidence. Additionally, the sluggish growth in new export orders, the lowest since the start of the year, has further diminished demand for Sodium Chloride. Rising inflationary concerns have also impacted the market, leading manufacturers to reduce Sodium Chloride prices in an effort to remain competitive and preserve their market share amid declining demand.

The decline in Sodium Chloride prices in China was influenced by the broader economic challenges reflected in the country's manufacturing purchasing managers' index (PMI), which fell to 49.1 from 49.4 in the previous month. This drop signifies a contraction in manufacturing activity, indicating that the world's second-largest economy faced significant headwinds as it entered the second half of the year. Key factors contributing to this decline included weakening demand, as evidenced by sluggish exports and diminishing prices, which highlighted a loss of economic momentum. Additionally, adverse weather conditions, such as heat waves and rainstorms, further disrupted manufacturing processes, exacerbating the decline in industrial output. As a result, the reduced industrial activity and demand translated into lower prices for Sodium Chloride in August, as the market adjusted to the softer economic environment.

Globally, the impact was further compounded by anti-dumping measures imposed by major markets, including the USA, Europe, and India. These duties were enacted to protect domestic industries from being undercut by cheaper imports, particularly from China, a major Sodium Chloride exporter. In India, for instance, the government’s proactive stance on anti-dumping duties aimed to shield its chemical industry from the adverse effects of low-priced Chinese imports. Consequently, the reduced demand for Chinese Sodium Chloride in these key markets pressured global prices downward, aligning with the trends observed in the Chinese market.

ChemAnalyst forecasts a continued decline in Sodium Chloride prices, driven by persistently weak demand. Consumers are likely to limit their purchasing activity due to global market uncertainties, which will keep overall demand for Sodium Chloride subdued, and prices lower.