In August 2024, Sodium Gluconate prices in the Chinese market exhibited a bearish trend, primarily influenced by weak downstream demand and minimal cost pressure from feedstock. One of the major drivers behind this decline was the slowdown in the construction sector, which reduced the demand for Sodium Gluconate in downstream industries. Sodium Gluconate, commonly used as a concrete admixture for its water-reducing and set-retarding properties, helps improve the workability and strength of concrete. However, during this period, the demand for Sodium Gluconate dropped, leading to a price decline of around 1.8%. Additionally, lower production costs, driven by a 2% decrease in sodium hydroxide prices, contributed to the overall market softness.

The weak demand for Sodium Gluconate in China was closely tied to reduced activity in the construction sector. According to the National Bureau of Statistics of China, the business activity index for construction dropped to 50.6% in August 2024, down by 0.6 percentage points from the previous month. This slowdown in construction activities significantly affected the demand for Sodium Gluconate. Furthermore, the sales price index for the construction industry also declined, falling to 48.1%, a 1.2 percentage point drop from July. Data from the China Index Academy revealed that second-hand home prices across 100 cities continued their year-on-year decline for the 28th consecutive month. Prices decreased by 0.71% in August compared to July and fell by 6.89% year-on-year. Although new home prices saw a marginal increase of 0.11%, this was slower than the 0.13% growth recorded the previous month. The ongoing downturn in real estate and construction sectors exacerbated the drop in Sodium Gluconate prices.

Conversely, the Indian market experienced a slight uptick in Sodium Gluconate prices, primarily due to an increase in production costs. The rise in sodium hydroxide prices in India contributed to this upward trend, even though the overall demand for Sodium Gluconate remained subdued due to weak downstream market conditions.

Despite the bearish trend, domestic traders and suppliers of Sodium Gluconate in China benefitted from ample supply and high inventory levels, ensuring stable market conditions. Additionally, reduced freight costs supported the supply chain. In August 2024, freight charges from Asia to Europe fell by around more than 10%, while rates to the U.S. West Coast dropped by approximately 2%, helping maintain the competitiveness of Sodium Gluconate exports amidst sluggish demand.

In Conclusion analysts anticipates that Sodium Gluconate prices in China may continue to follow this downward trend in the coming month due to weak downstream demand. However, a potential recovery may be expected by October.