In May 2023, prices for Sodium Nitrate showed a declining tendency, which was aided by changing market dynamics. There are a few factors to blame for the continuous decline in Sodium Nitrate prices worldwide. The availability of Sodium Nitrate was maintained by increased manufacturing operations and expanding supplies in both local and foreign markets.

The cost of Sodium Nitrate is also influenced by the two raw materials that make it up: Sodium Bicarbonate and Nitric Acid. In recent years, Sodium Bicarbonate's price has been low. The price of raw Soda Ash was lately weak and consolidated, and the Sodium Bicarbonate supply was enough. The downstream demand for Sodium Bicarbonate in textiles, food, medicine, and other industries was typical. Furthermore, prices had reduced, demand remained weak, and pressure on the concentrated Nitric Acid market's supply side had not abated. Nitric Acid prices continued to drop due to weak downstream demand as well as slow demand in sectors including insecticides and pickling. These elements contributed to the negative outlook for Sodium Nitrate in the market.

China, the world's largest producer of Sodium Nitrate, increased its output in 2022. This led to an increase in global supply and a decrease in prices. Also, the global demand for Sodium Nitrate has been weak in recent months. This is due to several factors, including the COVID-19 pandemic and the war in Ukraine. Furthermore, the US dollar has been strengthening against other currencies in recent months. This has made Sodium Nitrate more expensive for buyers in other countries. As a result of these factors, Sodium Nitrate prices have fallen by about 20% since the beginning of the year. It is expected that prices will continue to decline in the coming months. China accounts for about 40% of the global output of Sodium nitrate. In 2022, China increased its output of sodium nitrate by 10%. Global demand has been weak recently. The war in Ukraine has also disrupted the global supply chain, which has made it more difficult and expensive to get Sodium Nitrate to market.

Additionally, the decline in the world economy in recent years has resulted in less demand, which has pushed prices lower. The price of Sodium Nitrate in the US has decreased more recently as a result of the US dollar's recent rise versus foreign currencies. Additionally, energy and oil costs fell in the US and Europe, and as inflation subsided, the Sodium Nitrate market's market situation increased.

According to ChemAnalyst, due to improving downstream demand, the prices of Sodium Nitrate are anticipated to reflect the steady market environment. Additionally, it is projected that the costs of the raw materials Sodium Bicarbonate and Nitric Acid may decrease, which would favorably affect the Sodium Nitrate market environment.