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.
For the Quarter Ending September 2023
North America
The Sodium Ascorbate market across the North American region, primarily within the United States, dropped for the entire third quarter of 2023. As the First half of Q3 commenced, the values of Sodium Ascorbate rose at a very moderate level. However, retailers in the area were focused on raising their domestic prices to sell their goods at a higher cost and gain their profit margins. However, irrespective of the price of feedstock Vitamin C (Ascorbic Acid), the market trajectory for Sodium Ascorbate continued to remain on the North side. Moving towards August, the cost of Sodium Ascorbate started to decline in the US market. This was further supported by the increased availability of Vitamin C, a crucial raw material, which significantly pushed prices down. Notably, China, one of the major exporters, is projected to have a heft number of stocks, resulting in a higher influx of supply from these countries at a higher rate, thereby exerting downward pressure on both the downstream and upstream material within the US. Moreover, this declining price trend continued until the final weeks of September, which resulted in a higher buildup of inventories discouraged by a significant reduction in newer orders from domestic buyers. Overall, with this, the cost of Sodium Ascorbate ends September at $ 2760 /MT.
Asia Pacific
The prices of Sodium Ascorbate started the first half of the Third quarter of 2023 on an optimistic side, with inquiries rising at a very modest level both within the domestic and from the overseas market. While with weaker upstream Vitamin C cost, its availability within the region was lower, making it easier for the manufacturers to produce the product at a lower cost and sell it at a higher rate. Apart from those, rising inquiries from the overseas market additionally kept the supply-chain momentum on the upper side as of July 2023. However, as we approached mid-Q3, i.e., in August, the prices of Sodium Ascorbate prices dropped again considerably, displaying a downward trend yet gain. Supporting this, the market of its upstream Ascorbic Acid (Vitamin C) across the Chinese nutraceutical market dropped, continuing a downward trend that began in the preceding month, further supporting the pessimistic market outlook for Sodium Ascorbate. Continuing this, On the production side, manufacturers focused on reducing their existing stock levels owing to persistent drop in global inquiries, resulting in an excessive accumulated stockpile. One of the factors supporting this was impeding Golden Week holidays in China, owing to which the suppliers and manufacturers would undergo a temporary shutdown of their units and lessen labor in the market, which might affect the trade momentum. With this, the cost of Sodium Ascorbate in China was assembled at $ 2650/MT.
Europe
The consumption of Sodium Ascorbate within downstream food and pharmaceutical industries witnessed a moderate increase in inquiries, keeping its prices on the north side in the first half of Q3-2023. This was further attributed to the rising cost of energy and increasing freight charges from China. Additionally, speculators increased their domestic selling prices within the spot market because more than enough supplies among the merchants were left. However, moving towards August, the European Central Bank looks increasingly likely to raise interest rates next month as consumer prices rose in Germany, demonstrating that inflation continues to threaten the eurozone areas. Also, according to preliminary data from the Federal Statistics Office, consumer prices rose 6.4% year over year this month. The primary cause of this CPI increase is attributed to the rise in the cost of necessities like food and energy. Food prices continued to grow above average with a 9.0% year-over-year increase. After government relief programs helped to keep costs down last summer, energy prices increased by 8.3% in comparison to the prior year. The prices of Sodium Ascorbate experienced a notable decline yet again. This was again on the back of a significant drop in purchasing activity, which continued to remain on the southerly side until September 2023. Furthermore, the Euro's value fell in relation to the Chinese Yuan, which discouraged merchants from increasing their stock of goods. The prices of sodium bicarbonate, which is used as a feedstock in the production process and supports this downward market trend, have fallen once more, which has helped to lower sodium ascorbate's price realization. With this, the cost of Sodium Ascorbate in Germany was assembled at $ 2730/MT in Germany at the end of September 2023.
For the Quarter Ending June 2023
North America
The prices of Sodium Ascorbate across the United States demonstrate a mixed price trajectory during the Q2 of 2023. The values went on a continuous downward side in the month of April, which was primarily due to a constant drop in downstream inquiries from pharmaceutical, food additives, and personal care sectors since the previous month. Owing to this fact of inventories that were still on the higher side, the market participants were forced to lower their prices. Furthermore, as May approached, the market for its upstream Ascorbic acid continued to remain on the south side. This moderate increase in Sodium Ascorbate prices was supported by marginal growth in its downstream inquiries during the entire month of May. Since zero-covid was eliminated, trade between Asia and the US increased. This resulted in slightly improved imports for pharmaceutical excipients, balanced with an abundance of Vitamin C and Sodium Ascorbate supplies to meet local needs. Furthermore, at the end of Q2, the prices slipped again. Numerous Analysts claimed that inflation in the United States might ease, and both market conditions and trade dynamics have improved in the US. Still, lower demand for Sodium Ascorbate and its upstream ascorbic Acid across the nation continues to compel the merchants to offer at lower prices. With this, the prices of Sodium Ascorbate in the United States were assembled at USD 3050/MT USP CFR New York in the US.
Asia Pacific
Across the APAC region, the prices of Sodium Ascorbate witnessed a mixed price trajectory irrespective of its upstream Vitamin C market, which continued to demonstrate a decremented trend throughout Q2 of 2023. The cost of Sodium Ascorbate started the second quarter with weaker prices and ended Q2 on a bearish note, but the demand surged at a moderate level during the middle of the second quarter. Due to the limited demand that has been successfully balanced with supplies among domestic Merchants as April draws to a close, the price of Sodium Ascorbate declined steadily until the start of May 2023. Also, the National Bureau of Statistics reports that the manufacturing Purchasing Managers' Index (PMI) decreased from 49.2 in April to 51.9 in March, resulting in a decline in manufacturing activity. Moreover, in May, the prices for Sodium Ascorbate increased to a level that resulted in balanced supply-demand activity. However, the spread chart between upstream ascorbic acid and downstream Sodium Ascorbate was widened throughout this month. Moving towards the end of Q2, the demand for Sodium Ascorbate decreased again, owing to which the merchants offered their product at discounted prices which further benefitted the foreign purchasers as they were able to get the product at a cheaper cost than expected owing to Yuan depreciation against US dollar. With this, the prices for Sodium Ascorbate in June were assembled at USD 2890/MT USP FOB Shanghai.
Europe
Throughout the second quarter of 2023, the prices of Sodium Ascorbate across the German market followed the market trend of the APAC region. A decrease in inquiries from the downstream pharmaceutical and food industries kept the market on the south side until the month of April. Additionally, the market for Sodium Ascorbate shrank with a consistent drop in its upstream Ascorbic Acid cost. Additionally, the market suppliers' substantial supply holdings and the moderate demand from end users' sectors for both Upstream Vitamin C and downstream Sodium Ascorbate resulted in weakening market sentiments. Moreover, during the middle of the second quarter, the prices of Sodium Ascorbate showed an upward trend in response to rising demand. A surge in trade activities from exporting countries will probably be the main factor driving the market in Germany. Also, German consumer prices increased by a less-than-expected 6.3% on the year in May. Furthermore, moving towards the end of Q2, the prices of Sodium Ascorbate dropped again and were assessed at USD 3000/MT USP CFR Hamburg. A significant drop in upstream Ascorbic acid values by around 5 percent additionally influenced the weaker market sentiments for this month.
For the Quarter Ending March 2023
North America
Throughout the first quarter of 2023, Sodium Ascorbate prices showcased an upsurged trend in the North American region. During the start of Q1, prices surged by more than 2 percent, supported by a significant surge in domestic inquiries from the pharmaceutical and food sector. Additionally, after the end of New Year's festivities, market participants focused on placing fresh quotations along with that increased the prices for remaining supplies in the domestic market. Besides this, costlier imports from China additionally reinforced the market trend of Sodium Ascorbate on the upper end. With this, the prices recorded during the month of February were settled at USD 4455/MT CFR New York.
Asia
Throughout the first quarter of 2023 in the Asia Pacific region, primarily in China, the Sodium Ascorbate prices demonstrate an upsurged trajectory. This price trend was attributed to a significant rise in inquiries from international and domestic markets. Moreover, the rise in its upstream Vitamin C cost additionally supported the positive market trend in China for Sodium Ascorbate. During January, the manufacturers increased their production capacity because of the arrival of CNY (Chinese New Year) to prevent the shortage or delay of shipments and stockpile their stocks to meet the overall local requirements. Besides that, the increase in container logistics indicates that the downward trend has finally come to a halt, which supports many players who export to foreign markets. Hence, the price of Sodium Ascorbate continued to maintain its inclined pricing trend until the end of Q1 and was recorded at USD 3700 /MT FOB Shanghai in February.
Europe
During the first quarter of 2023, Sodium Ascorbate prices in Europe followed a pattern like those in China. Prices increased by 4% at the start of the first month of Q1 because of a rapid rise in client queries combined with low supply levels. The general market trend during Q1 was further influenced by a reduction in inflation and eased trade activity. However, until the end of Q1, orders from end-user industries were above average, supporting robust demand and encouraging dealers and local retailers to keep their shelves stocked. With these figures, the price of sodium ascorbate was reported for the month of February as USD 4820/MT CFR Hamburg.
For the Quarter Ending December 2022
North America
North American region displayed a significant dip in the prices of Sodium Ascorbate during the fourth quarter of 2022. Due to China's Golden Week celebrations, the import from China remained low along with inquiries which supported the weaker market sentiments of downstream Sodium Ascorbate in the month of October. Following November, with weaker sentiments, the prices of Sodium Ascorbate witnessed were settled at USD 4255/MT CFR New York. Additionally, higher inventories among domestic merchants and steadfast demand from the downstream sectors for upstream Vitamin C in the United States supported the market sentiments of Sodium Ascorbate in the United States throughout the final quarter.
Asia Pacific
The cost of Sodium Ascorbate in the Asia Pacific region, primarily in China, demonstrated a dwindled trend throughout the final quarter of 2022 as a result of the weak demand from the downstream pharmaceutical sectors. During October, new export orders were at their "lowest level since August" owing to the continuous shrinkage of China's manufacturing industry. Ease in trade disruption, along with shipping charges during November, did not affect the market sentiments of Sodium Ascorbate as the demand remained low. With this, the prices for Sodium Ascorbate during mid-Q4 were settled at USD 3450/MT FOB Shanghai in China. Moreover, with declining demand, stockpiling of inventories among the market players, and the prices of Sodium Ascorbate remained on the lower end till the end of 2022.
Europe
During the fourth quarter of 2022, the prices of Sodium Ascorbate followed a similar pattern to that of Asia Pacific. The market trend started on decreasing note and reached an assembly price of USD 4625 /MT CFR Hamburg in Germany during November because of declining demand from the end-user pharmaceutical industry and rising stocks among the market players as inquiries from the downstream sector for Sodium Ascorbate prices began to fall significantly in December, which was also supported by weakened upstream Vitamin C prices. Additionally, the inventories, with market players' however, remained larger, and their inquiries weaker during the Thanksgiving break.
For the Quarter Ending September 2022
North America
Prices for Sodium Ascorbate in the US domestic market fell sharply during the third quarter of 2022, from USD 5840/MT to USD 4440/MT from July to September. The factories that produce Sodium Ascorbate were compelled to decrease prices because of the immediate lockdowns in China, where the majority of pharmaceutical excipients are imported. As a result, the US Sodium Ascorbate market saw a decline in demand from downstream pharmaceutical and nutraceuticals industries. US imports significantly declined due to the shutdown of industrial facilities in China, some of which were shut down for maintenance throughout H2 of Q3. These factors had a substantial influence on the downward pricing trend of sodium ascorbate, which decreased by more than 25% on a quarterly basis.
Asia- Pacific
The price trend for Sodium Ascorbate in the Asia Pacific showed a downward trajectory throughout the third quarter of 2022. The prices of Sodium Ascorbate in China significantly decreased by around 25% in August and declined further by 5.3% in September. The major reason for this decline was a continuous drop in feedstock Ascorbic Acid prices. The manufacturers of Sodium Ascorbate have been keeping a close eye on the price trend of Ascorbic Acid. Only purchases for immediate consumption were observed from major suppliers; otherwise, demand from downstream industries remained weak during the entire quarter. In the Chinese domestic market, there was enough stock of Sodium Ascorbate with the local suppliers, and the price was lower than the production cost. Thus, the FOB Shanghai prices for Sodium Ascorbate in China were assessed at USD 3950/MT in September.
Europe
German Sodium Ascorbate price trend showcased a downward trajectory during the third quarter of 2022, with values for CFR Hamburg estimated at USD 6190/MT in July and later settled to USD 4940/MT in September. However, the quarter's downward price trend was backed mainly by the lowest price quotation from the significant importing country, China which seems quite beneficial for German buyers. Moreover, inventories of Sodium Ascorbate were sufficient to cater to the overall demand, resulting in lower Sodium Ascorbate prices in the domestic market. Also, demand from end-user pharmaceutical and food industries remained sluggish as the customer was buying as a necessity. Furthermore, Germany's logistical problems worsened the economic slump as transportation bottlenecks persisted this quarter.
For the Quarter Ending June 2022
North America
Sodium Ascorbate prices in the North American region continued to decrease throughout the second quarter of 2022 due to declining demand from the downstream pharmaceutical sector. Adequate inventories in the domestic market have substantially pressurized Sodium Ascorbate market sentiments to be on the lower side. Additionally, the zero covid policy in China amid the resurgence of COVID cases has abrupted the global supply chain and negatively impacted the price trends of Sodium Ascorbate in the United States. Domestic merchants and buyers were concerned about raw material Ascorbic acid prices due to the US's growing inflation, the geopolitical situation in Russia and Ukraine, and the wildly unpredictable oil prices. The prices for Sodium Ascorbate were assessed at USD 5940/MT in the United States at the end of the quarter.
Asia- Pacific
During the second quarter of 2022, the pricing trend for Sodium Ascorbate in the Asia Pacific showed a hostile trajectory. An increase in COVID-19 cases during the first week of April had many effects on the country's pharmaceutical markets; as a result, the Chinese government placed the essential production facilities on lockdown, which mainly hampered the activities. Some businesses were prepared to provide the products at a discount to get rid of supplies before they deteriorated. The domestic pharmaceutical and nutraceutical industries saw substantial quarterly intakes because local producers and consumers had ample inventory to fulfill demand. Thus, the FOB Shanghai Sodium Ascorbate prices in China have dropped sharply by 19.4% from the previous quarter, with values assessed at USD 5400/MT in June.
Europe
During the second quarter of 2022, the European Sodium Ascorbate market had negative sentiments. The war between Russia and Ukraine made it more challenging for exporting nations to conduct business, raising transportation costs and slowing commodities' flow into Europe. Throughout the whole quarter, demand from end-user pharmaceutical companies remained lower. Overall, the providers had enough inventory to meet all domestic demand. It was also more challenging to get the goods to the European market because China's "Zero Tolerance" policy and frequent lockdowns caused numerous cargo ships to become stuck at ports. With a quarterly declination of 22%, the CFR Hamburg prices of Sodium Ascorbate in Germany settled at USD 6310/MT in June.
