Global Sodium Tetraborate Prices Rise Amidst Supply Challenges and Growing Demand in July 2023

In July 2023, Germany's Sodium Tetraborate market price increased due to tight supply, rising demand, and increased freight charges. As Germany struggled with heat waves and heavy rainfall, the river Rhine's water level kept changing throughout the timeframe. Imports of Sodium Tetraborate from other Asian and European markets were also majorly affected by increased freight charges on the cargo shipping partly empty. Towards the second half of the month, the increase in water levels in the Rhine River was not sufficient for cargo vessels to sail fully loaded in northern areas, leading ship operators to apply extra charges on freight rates to compensate for partially empty vessels. However, the situation had improved by the end of July, as heavy rain brought back the water level to normal.

Inflation in Germany was 6.2% in July; the Federal Statistical Office (Destatis) said it was down compared to the previous month. This offered a ray of positive news amidst the market complexities, suggesting some level of stabilization in economic indicators.

In the US market, the market price of Sodium Tetraborate witnessed an increase due to multiple factors throughout July 2023. These included improved demand from the downstream sector, a rise in export orders, the impact of high inflation on commodity prices, and tighter financial conditions. These combined factors led to a significant and rapid surge in the prices of Sodium Tetraborate. Manufacturers also experienced a renewed uptick in input prices, mainly attributed to the increase in Crude Oil prices during the month. Additionally, production and supply in the US market faced some disruption due to tight labor market conditions, as a possible UPS strike loomed. However, a preliminary agreement between UPS and the Teamsters averted a potentially disruptive strike, contributing to market stability.

On the demand side, Demand for Sodium Tetraborate improved from the downstream glass and ceramics industries, alongside a surge in household products like laundry detergents, where Sodium Tetraborate is utilized as a cleaning agent and deodorizer. Additionally, the demand for Sodium Tetraborate as a preservative also gained great attention from cosmetic and personal care products, such as creams, lotions, and bath salts, to extend their shelf life.

Therefore, ChemAnalyst forecasted that the price for Sodium Tetraborate is likely to increase from the downstream industries. However, potential hindrances in the supply chain, such as disruptions in the German Rhine water levels or labor market challenges in the US, could impact supply. The anticipation of an upcoming hurricane season in August may further create challenges in the supply of Sodium Tetraborate.