U.S. Sodium Nitrite Prices Show Resilience Amid Rising Demand and Optimism Future

Texas, USA: The U.S. Sodium Nitrite market continues to show resilience, and as the month of September progresses, the prices of Sodium Nitrite have held steady. Firm demand for meat preservation in the food and beverage industry has supported the Sodium Nitrite market. The sales figures of major U.S. companies suggest that consumer demand for food preservation continues to grow, particularly benefiting Sodium Nitrite consumption. Boosted by easing inflationary pressure, improved agricultural trade conditions, and the government's focus on public infrastructure, all of these factors are positive indicators for an increase in consumption demand for Sodium Nitrite.

FMCG companies have also seen significant growth in the e-commerce segment, showing particularly strong gains, which further bolstered the demand for Sodium Nitrite. Anticipated volume trends are expected to continue their upward momentum, supported by stable retail inflation, contributing to the ongoing growth of the Sodium Nitrite market.

On the production side, U.S. chemical production, which includes Sodium Nitrite, has been trending upward this year. In the first quarter, about half of the companies saw an increase in production. Building on that solid performance, 89% of firms indicated that production was either stable or growing compared to the previous quarter, according to the American Chemistry Council. Chemical manufacturers are optimistic about continued production growth, including for Sodium Nitrite, over the next six months. In the second quarter, domestic demand strengthened as new orders increased, though foreign orders saw a decline.

Advance estimates of U.S. retail and food services sales for July 2024, adjusted for seasonal variations, holidays, and trading-day differences but not for price changes, totaled USD 709.7 billion. This represents a 1.0% increase from the previous month and a 2.7% rise compared to July 2023. Sales for the period from May 2024 to July 2024 were 2.4% higher than the same period in the previous year. Sales by nonstore retailers rose by 6.7% year-on-year, while food services and drinking establishments experienced a 3.4% increase from July 2023.

Meanwhile, in the upstream markets of Sodium Nitrite, the upward trend continues. In the U.S., the Sodium Nitrate market has been following a similar upward trajectory as observed in China. As a significant importer of Sodium Nitrate, primarily sourced from China, the U.S. Sodium Nitrite market was affected by the rising costs of raw materials. Positive domestic market conditions, coupled with increases in freight expenses, added further pressure on export prices. This scenario resulted in better profit margins for suppliers and traders of Sodium Nitrite.

According to the ChemAnalyst pricing team, the prices of Sodium Nitrite are anticipated to demonstrate a further upward trend in the upcoming weeks, backed by robust consumer demand for Sodium Nitrite.