For the Quarter Ending September 2024
North America
In Q3 2024, the Sodium Ascorbate Exp market in North America witnessed a notable uptrend in prices, primarily driven by a confluence of factors. Various elements contributed to the price surge, including heightened global demand, supply constraints, increased production costs ahead of limited feedstock availability, and currency fluctuations supporting the continuous rise in import quotations from the region.
With respect to the overall market sentiments, the region for the entire quarter continued to experience supply disruptions in trade activity due to plant shutdowns witnessed within the key producing nations, further tightening supply chains and pushing a consistent upward trajectory. These disruptions, coupled with limited product availability and higher import costs, created a scenario where prices continued to rise steadily. Specifically in the USA, the market saw the most significant price changes, reflecting the overall trend in North America.
Overall, the quarter recorded a substantial price increase of 14% from the previous quarter, indicating a robust pricing environment, highlighting a consistent upward trajectory. The quarter-ending price of USD 4950/MT of Sodium Ascorbate USP CFR New York in the USA underscored the positive pricing sentiment prevailing in the market.
Asia Pacific
Throughout Q3 2024, the Sodium Ascorbate Exp market in the Asia Pacific region witnessed a significant upsurge in prices, driven by a confluence of factors. The market dynamics were influenced by heightened demand from various sectors such as pharmaceuticals, nutraceuticals, and food preservatives, leading to a surge in procurement activities. Additionally, supply constraints, coupled with supply chain disruptions and increased freight costs, further propelled the market prices upwards. The quarter also saw stable production levels and strategic inventory management by suppliers, contributing to the price escalation. Notably, the market in China experienced the most substantial price changes, reflecting the overall trend in the region. Adding to these challenges, China experienced its worst typhoon in 75 years, making landfall on the east coast. Various reports state that ships are now facing delays of 36-60 hours to berth in Shanghai at the end of the quarter. Several ports in Ningbo and Shanghai have announced the suspension of container operations. As typhoons disrupt port activities, the resulting supply chain bottlenecks lead to surging transportation costs, extended lead times, and inventory shortages. Persistent global logistics challenges continue to cast a long shadow over commodity supplies, including sodium ascorbate. These challenges not only support the current price levels but also provide a foundation for potential further increases. The quarter recorded a notable 14% increase from the previous quarter, indicating a pronounced upward trajectory. As a result, the overall quarter ended on a high note, with Sodium Ascorbate USP FOB Shanghai pricing at USD 4720/MT, signifying a positive and lucrative pricing environment.
Europe
In Q3 2024, the Sodium Ascorbate export market in Europe, similar to North America, experienced substantial price escalation. Several key factors contributed to this trend, including strong global demand, supply chain disruptions, and increased production costs. Shutdowns at major production facilities further strained supply, driving prices higher. Rising raw material costs, exacerbated by surging crude oil prices due to tensions in the Middle East, also played a significant role in the price surge. Currency fluctuations, particularly the appreciation of the Euro against the USD, added to the increased import costs, influencing downstream purchasing behavior as demand outpaced supply. Germany, in particular, saw the most pronounced price increases, with Sodium Ascorbate prices rising 13% compared to the previous quarter. These market dynamics in Germany highlighted a positive pricing environment, culminating in a closing price of USD 4840 per metric ton, CFR Hamburg. This significant rise in Sodium Ascorbate prices underscores a period of substantial growth, fueled by a combination of global supply pressures, currency shifts, and robust demand, positioning the market on a clear upward trajectory throughout the third quarter of 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Sodium Ascorbate Exp in North America has experienced significant upward momentum supported by several key factors. Firstly, escalating input costs, particularly for ascorbic acid, have driven prices higher. Secondly, global supply chain disruptions, including limited product availability from major producers due to scheduled plant maintenance shutdowns, have exacerbated supply constraints.
Rising energy costs further compounded the situation, increasing the overall production costs. Additionally, enduring challenges in the shipping industry, such as elevated freight rates and container scarcity, have strained the import flow, creating a competitive market environment. Focusing on the USA, which saw the most pronounced price changes, the quarter was marked by heightened demand from the nutraceutical and pharmaceutical sectors.
As a result, the overall trend depicted a consistent rise in prices, influenced by robust local purchasing activity and inflationary pressures. Seasonal factors, such as increased summer demand, aligned with the upward pricing trajectory. This quarter witnessed a 31% increase from the previous quarter of 2024, showcasing significant market volatility and pressure. Conclusively, the quarter-ending price stood at USD 4135/MT for Sodium Ascorbate in the USA, indicating a predominantly positive pricing environment driven by supply-demand imbalances and external cost pressures.
Asia Pacific
The second quarter of 2024 witnessed an unequivocal upward pricing trajectory for Sodium Ascorbate Exp across the APAC region, driven predominantly by robust demand dynamics and constrained supply conditions. A confluence of heightened downstream consumption from the food, pharmaceutical, and nutraceutical sectors, coupled with continuous currency depreciation and escalating feedstock costs, significantly bolstered market prices. The surge in procurement activity mirrored the seasonal uptick in demand as warmer weather necessitated increased use of preservatives and vitamin C substitutes in various applications, further exacerbated by logistical disruptions and elevated freight charges. China epitomized this bullish market sentiment, recording the most substantial price changes within the region. The overall trend was markedly positive, influenced by a consistent influx of overseas inquiries and a strategic push by manufacturers to expand production capacities in response to mounting demand pressures. Seasonality played a pivotal role, with spring and summer months contributing to heightened consumer interest in skincare and dietary supplements containing sodium ascorbate. This seasonal demand surge, alongside geopolitical tensions and increased raw material costs, underpinned the continuous appreciation in prices. Overall, the quarter concluded on a strong note with the latest quarter-ending price at USD 3900/MT for Sodium Ascorbate in China, reflecting a persistently positive pricing environment throughout the period.
Europe
Q2 2024 has been a dynamic quarter for Sodium Ascorbate Excipient across the European region, marked by a persistent upward price trend driven by various significant factors. The increase in import costs heightened regional demand, and logistical constraints were pivotal in shaping market dynamics. A notable resurgence in demand from downstream sectors, particularly preservatives and supplements, coupled with logistical challenges from producing countries, contributed to constrained product availability. This scarcity was further exacerbated by ongoing disruptions in supply chains due to plant shutdowns for maintenance and operational inefficiencies in sourcing regions. The market sentiment was further bolstered by importers capitalizing on existing inventories amidst decreasing import availability, thereby fostering a bullish market environment. Germany, experiencing the maximum price changes, epitomized these trends. Persistent demand and constrained supply led to significant price escalations, reflective of the broader European context. However, the market witnessed a slight drop in the prices as quarter marks its ending in June. This was supported by need-on-basis purchasing which was somewhere balanced by the overall availability od inventories among the traders. The pricing environment remained overwhelmingly positive, characterized by a 30% increase from the previous quarter.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Sodium Ascorbate Excipient market in North America demonstrated intricate pricing dynamics, influenced by a multitude of factors. While prices increased overall compared to the same period last year, the most significant fluctuations were observed in the United States. Several factors contributed to this, including disruptions in the supply chain, geopolitical tensions, and rising costs of raw materials.
Seasonal demand due to the cold and flu season further drove prices up during the quarter. Additionally, market shutdown in exporting nations, particularly China ahead of the Lunar New Year holidays further hampered import momentum until mid-February 2024, keeping Sodium Ascorbate Excipient prices elevated throughout the quarter. Adding to this, rising freight and transportation costs further compounded logistical challenges, creating obstacles in obtaining the product which further affected the overall trade momentum thereby creating an imbalanced supply-demand outlook.
Hence,the analysis concludes with a month-over-month price change for Sodium Ascorbate USP CFR New York in the USA, reaching USD 3455/MT as of March. Overall, the pricing dynamics in Q1 2024 for Sodium Ascorbate in North America underscore the intricate balance between supply and demand, market sentiment, and external influences, highlighting the significant impact of events such as plant shutdowns on pricing trends.
APAC
In Q1 2024, the pricing dynamics of Sodium Ascorbate in the APAC region experienced notable fluctuations, with a focus on the Chinese market. Beyond the conventional factors, several nuanced influences impacted the market. The overall trend in China reflected an upward trajectory in prices, driven by a persistent rise in end-users and overseas demand from both domestic and international markets. Furthermore, witnessing this, the market situation in China was additionally characterized by limited supply supported by a temporary slowdown, with manufacturing units shutting down, a shortage of labor, and a weakening export momentum. However, upon the resumption of regular operations post-holiday, there was a notable uptick in both regional and international inquiries for Sodium Ascorbate, providing an added advantage to suppliers and manufacturers. Recognizing the potential for increased profitability, industry stakeholders strategically elevated prices to optimize their maximum profit margins. Additionally, a robust export market substantially supported the price of Sodium Ascorbate during the month. Moving forward toward the end of the quarter, the ongoing tensions in the Red Sea region and the resulting trade disruptions eased to some extent supported by a drop in freight charges and the reopening of the market. This reopening of the Chinese market after seasonal festivities marked a significant milestone, ushering in a resurgence of production activities across manufacturing units by market participants to fulfill renewed demand, and merchants adjust pricing strategies to compensate for previous profit losses. Ultimately, the final quarter's price for Sodium Ascorbate USP FOB Shanghai in China was USD 3300/MT in march 2024.
Europe
In Q1 2024, the pricing dynamics of Sodium Ascorbate in the Europe region showcased a notable increase, with Germany experiencing the most pronounced fluctuations. Beyond the conventional top influences, several factors contributed to this price surge. Firstly, the overall trend in the market was influenced by heightened demand from the downstream sector, driven by the peak season for colds and flu, as well as the holiday season and increased travel and social gatherings. This led to an increased need for immune-supporting supplements like Sodium Ascorbate. Secondly, the market situation in Germany played a crucial role, with challenges related to supply chain disruptions, geopolitical tensions, and trade disruptions impacting market sentiments. Rerouting shipping lines via the Cape of Good Hope due to tensions in the Red Sea resulted in increased shipping costs, order cancellations, delays, and uncertainty. Additionally, the Chinese New Year celebrations caused disruptions in China, affecting supply chains and logistics. Moreover, the rising cost of freights globally and a slowdown in export-import activities from major exporting nations added to the pricing dynamics until mid feb which however eased as march commenced. Furthermore, the optimistic market trend was supported by higher feedstock Vitamin C prices and increased exporting prices from major manufacturing units. Overall, the final quarter price for Sodium Ascorbate USP CFR Hamburg in Germany was mentioned as USD 3430/MT.
For the Quarter Ending December 2023
North America
The North American market for Sodium Ascorbate Exp. commenced the fourth quarter of 2023 witnessing an incessant drop until the middle of the fourth quarter while ended December demonstrating a significant rise. With the commencement of October, the continuous drop in demand was primarily driven by shifting consumer preferences and increased competition within these sectors. Secondly, this was further supported by an oversupply of Sodium Ascorbate in the market, as manufacturers in exporting countries possessed more than sufficient inventories on the back of heightened imports witnessed in prior months.
This pattern persisted until the closing weeks of November 2023. Moreover, due to a continual absence of new orders from both domestic and international channels, the Sodium Ascorbate industry in the country encountered challenges, prompting downstream players to further modify their prices to maintain their profit margins. Toward the end of the year, importers adjusted their inventories, reducing their need for additional import quotations. Meanwhile, concerning the market for its raw materials, specifically Ascorbic Acid (Vitamin C), the downward trend in the nutraceutical market, which had been ongoing from the previous month, continued, exacerbating the overall pessimistic demand outlook.
As December 2023 commenced, the pricing trend for certain excipients indicated a modest increase across the North American region, including Sodium Ascorbate. However, according to market experts, the market holds sufficient inventories of Sodium Ascorbate, aligning with the overall surge in demand for immune-boosting supplements during this peak winter month. Additionally, the rising costs of freight, fuel, and an ongoing sea trade dispute have further supported higher export prices, resulting in an overall increase in importing regions. Finally, support from the upstream feed Vitamin C prices contributes to the positive market outlook for Sodium Ascorbate in December 2023.
APAC
The Sodium Ascorbate export market in the APAC region during the fourth quarter of 2023 has been affected by several factors. Firstly, the overall demand for Sodium Ascorbate remained low until November 2023, primarily due to weakened demand from industries downstream and a lack of improvement in demand from both overseas and regional end-use sectors. Secondly, the market faced challenges in terms of supply, with high levels of existing stock and limited impact on the downstream sector. Lastly, the economic challenges faced by China, the largest market for Sodium Ascorbate, further contributed to the decline in prices. China's slow economic recovery, coupled with reduced interest from industries and a slowdown in export growth, led to a pessimistic market outlook for Sodium Ascorbate in the country. Additionally, as of November 2023, the official purchasing managers' index (PMI) fell to 49.4 in November from 49.5 in October, missing economists' forecast of 49.7. The 50-point mark demarcates contraction from expansion. The index has fallen in seven of the past eight months, with an increase only in September. The new orders sub-index contracted for a second consecutive month, while two other sub-indices for raw material inventory and employment also were lower keeping the overall market sentiments on South side. Lastly, towards the termination of the fourth quarter i.e., in December 2023, the prices of sodium ascorbate showed a discernible upturn after a protracted period of continuous decline in prior months. Increased downstream consumption and a spike in foreign inquiries were the main drivers of this slight price increase in exporting countries. This price increase was mostly caused by the increased demand for immune-boosting supplements in December, which happened to coincide with the cold and flu season in many parts of the world. Furthermore, a spike in demand brought about by the ongoing holiday season and the growing use of sodium ascorbate in the preparation of food and beverages kept exporting prices high.
Europe
The fourth quarter of 2023 was challenging for the Sodium Ascorbate export market in Europe and continued to follow the market trajectory of exporting nations. Until mid Q4 i.e., November there was a decline in demand from the food and pharmaceutical industries, driven by changing consumer preferences and intensified industry competition. This resulted in a decrease in prices as retailers offered significant discounts to attract customers and reduce inventory levels. Supporting this, the seasonal transition in Germany from summer to winter in November is a plausible explanation for the decrease in Sodium Ascorbate prices. Anticipating this seasonal decline in demand, Sodium Ascorbate manufacturers offered discounts in November to clear their existing inventory before the end of the year. This strategy helps them avoid holding onto unsold stock and frees up storage space for potential production adjustments based on winter demand patterns. Nonetheless, moving ahead towards the end of December 2023, The prices of Sodium Ascorbate in the German market experienced a substantial surge, marking an increase of more than approximately 5 percent. Market experts attributed this price rise to several factors. The change in pricing dynamics holds substantial consequences for market experts and traders who strategically amassed stocks in anticipation of an anticipated surge in demand from their respective end-user sectors. The initial expectation was rooted in the anticipation of a heightened influx of inquiries from the downstream sector, prompting proactive stockpiling of excipients. However, the market sustained a firm and resilient sentiment due to elevated freight charges resulting from supply disruptions caused by the Red Sea trade dispute, leading to rerouting activities. As a significant importing region, Germany adjusted its pricing trajectory to align with that of major exporting countries such as China, resulting in an optimistic market trend.
