For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Sodium Bicarbonate market in North America faced significant challenges, marked by a consistent decline in prices. The region experienced a notable 5% decrease compared to the same quarter in the previous year, along with a 1% drop from the previous quarter in 2024. This downward trend was largely influenced by oversupply, weakened demand, and ongoing economic difficulties, creating a subdued pricing environment.
In the USA, the market saw significant price fluctuations during Q2 2024, driven by supply-demand dynamics and production costs. Decreased production costs in major manufacturing and exporting countries reflected a broader trend of falling prices. Consequently, intense pricing competition led U.S. buyers to delay new purchases in anticipation of further declines, while companies liquidated excess inventories, exacerbating the oversupply and dampening buyers' willingness to accept higher prices. The situation was further complicated by stagnant Soda Ash prices, a key raw material, due to oversupply and weak global demand. As August approached, Sodium Bicarbonate prices declined again, as the market continued to grapple with oversupply and insufficient demand. The manufacturing sector experienced its fourth consecutive month of contraction, contributing to a negative market sentiment.
By the end of the quarter, the price for Sodium Bicarbonate (Food Grade) CFR New York settled at USD 418/MT, reflecting an average quarterly decline of 1.12%. Overall, Q3 2024 was characterized by a challenging outlook for the Sodium Bicarbonate market in North America, underscored by excess inventory, decreased demand, and economic uncertainties that necessitate careful monitoring in the months ahead.
Asia Pacific
In Q3 2024, the Sodium Bicarbonate market across the Asia-Pacific (APAC) region experienced notable pricing fluctuations, driven by a range of complex factors. Economic uncertainties, geopolitical tensions, and seasonal variations exerted significant pressure on supply chains and demand patterns, contributing to the volatility. Singapore, in particular, saw substantial price changes, reflecting broader regional trends. This marked a sharp contrast to the same quarter in 2023, which had seen a decline, underscoring the shift in market dynamics.
The third quarter of 2024 was characterized by three distinct pricing phases in Singapore’s Sodium Bicarbonate market. In July, prices showed consistent upward momentum due to limited inventories and strong demand. This bullish trend continued into August, with the month registering the highest price levels of the quarter, supported by increased production rates and a steady recovery in demand. However, September marked a turning point, with prices declining sharply as supply levels surged, demand weakened, and market sentiment turned bearish.
Throughout the quarter, broader economic indicators, including fluctuations in the Purchasing Managers' Index (PMI), geopolitical disruptions in key shipping routes (notably the Red Sea), currency movements, and raw material cost variations, particularly in Soda Ash, played a significant role in shaping the market. The supply situation shifted from shortages in July to oversupply by September, while demand, initially strong, softened considerably by the end of the quarter. The quarter concluded with the price of Sodium Bicarbonate (Tech Grade) FOB Jurong in Singapore at USD 266/MT, reflecting an average quarterly price increase of 0.02%. This period highlighted the market's sensitivity to global economic trends and local supply-demand shifts, illustrating the dynamic nature of the industry.
Europe
In the third quarter of 2024, the European region experienced a significant decline in Sodium Bicarbonate prices, with Germany exhibiting the most pronounced fluctuations. This downturn can be attributed to several interrelated factors, including oversupply conditions, diminished demand from key industries, and ongoing supply chain disruptions. These challenges contributed to a subdued market sentiment, resulting in a consistent decrease in prices throughout the quarter.
By the end of Q3, the price of Sodium Bicarbonate (Food Grade) CFR Hamburg in Germany was recorded at USD 338 per metric ton with an average quarterly decline of 3.11%, underscoring the prevailing downward trend in the region. This decline was influenced by reduced production costs among major manufacturing nations, leading to an increased supply as companies sought to liquidate accumulated inventories. This strategy was primarily aimed at mitigating storage costs and minimizing risks associated with product degradation.
As the quarter progressed, particularly in August, the market continued to witness price reductions. Key contributors to this trend included weak downstream demand and inflationary pressures that adversely affected purchasing power. The market landscape remained characterized by oversupply resulting from prior stockpiling, which exceeded current demand levels. Furthermore, falling soda ash prices exerted downward pressure on production margins, compounding the challenges faced by producers. Overall, the third quarter of 2024 was marked by a complex interplay of supply and demand dynamics within the German Sodium Bicarbonate sector, characterized by declining prices amid a cautious market environment. Stakeholders navigated a landscape shaped by excess supply and shifting demand patterns, reflecting broader economic uncertainties.
For the Quarter Ending June 2024
North America
In Q2 2024, the Sodium Bicarbonate market in North America exhibited a notable upward trend, driven by a confluence of significant factors. The quarter was characterized by a stable production output aligned with demand, ensuring adequate inventory levels. However, supply chain disruptions, including geopolitical tensions and logistical constraints, exerted additional pressure on transportation costs, thereby influencing market prices.
Focusing on the USA, the region witnessed the most pronounced price changes. Despite overall market stability, the USA experienced a robust increase in Sodium Bicarbonate prices due to strong domestic purchasing activity and increased freight charges. Seasonal demand fluctuations and heightened procurement from downstream industries further bolstered the market sentiment. Compared to the same quarter last year, prices surged by 8%, reflecting a positive pricing environment. However, from the previous quarter in 2024, there was a slight decline of 4%, showcasing a complex interplay of factors amidst the broader upward trajectory.
The latest quarter-ending price stood at USD 435/MT CFR New York for Food Grade Sodium Bicarbonate, marking a steady and favorable pricing environment. The overall sentiment for Q2 2024 has been positive, underpinned by strategic inventory management, stable raw material costs, and resilient demand.
Asia Pacific
In Q2 2024, the Sodium Bicarbonate market in the APAC region exhibited a generally positive pricing environment, driven by a confluence of factors. Key influences included robust demand from downstream industries such as pharmaceuticals, food processing, and personal care, coupled with constrained supply dynamics. Production costs were elevated due to increased raw material prices, particularly Soda Ash, and higher energy costs amid ongoing geopolitical tensions. The market also benefited from an upbeat sentiment following global economic improvements and favorable trading conditions, further compounded by a strategic approach to bulk purchasing by market participants ahead of anticipated price hikes.
Focusing on South Korea, which experienced the most significant price fluctuations in the region, the overall trends indicated a cautious optimism despite seasonal variances. The percentage change from the same quarter last year was -3%, reflecting a moderate decline, while the transition from the previous quarter marked a significant -6% decrease. This rebound was underpinned by heightened local demand and proactive stocking practices by downstream industries, ensuring stability amidst broader market volatility.
The quarter-ending price for Sodium Bicarbonate (Food Grade) in South Korea stood at USD 318/MT CFR Busan, encapsulating the fluctuating yet ultimately positive trend observed throughout Q2 2024. The pricing environment during this period, though challenged by external pressures, managed to stabilize and even demonstrate growth, signaling a cautiously optimistic outlook for the Sodium Bicarbonate market in the APAC region.
Europe
In the second quarter of 2024, the Sodium Bicarbonate market in Europe experienced rising prices, driven predominantly by several critical factors. One of the major influences has been the persistent disruptions in global supply chains, particularly the ongoing drought affecting the Panama Canal, which led to increased shipping costs. Additionally, geopolitical tensions in the Middle East further exacerbated logistical challenges, adding to the upward pressure on prices. Lower production costs from decreased Soda ash prices in exporting regions offered some relief, yet the overall market sentiment remained bullish due to the tight supply-demand dynamics.
Focusing on Germany, which recorded the most significant price changes, the overall trends revealed a steady upward trajectory in Sodium Bicarbonate prices. Seasonality did not significantly impact the pricing, as the market remained consistently buoyant throughout the quarter. The correlation between increased demand from downstream industries and reduced supply availability was evident, driving prices higher. Compared to the same quarter last year, prices have increased by 2%, reflecting a modest yet consistent growth. However, when compared to the previous quarter in 2024, there was a noticeable 5% decrease, indicating a recovery from earlier lows.
Concluding the second quarter, the price of Sodium Bicarbonate (Food Grade) in Germany stood at USD 372/MT CFR Hamburg. This consistent upward trend highlights a positive pricing environment, suggesting that despite various challenges, the market has been resilient and adaptive, ultimately benefiting from the supply-side constraints and strong demand.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Sodium bicarbonate market in North America experienced a generally declining trajectory. Market prices fluctuated, with a notable trend being observed. The latest quarter-ending price for Sodium bicarbonate CFR New York in the USA was USD 435/MT, showing an average quarterly decline of 0.28%.
Key factors affecting these prices included supply and demand dynamics. While there was a moderate to high supply of Sodium bicarbonate, demand from downstream sectors remained relatively low to moderate, resulting in a slightly weakened pricing environment. Global market dynamics, particularly changes in China's pricing strategies and reduced international demand, also influenced US market prices. The strength of the US dollar against other currencies facilitated advantageous import opportunities. Market players engaged in inventory management practices as the quarter ended, aiming to destock inventories and prepare for replenishment with fresh supplies, which helped optimize inventory levels and maintain market liquidity.
However, prices did increase steadily in January due to geopolitical tensions and trade disruptions. Export challenges, such as shipping lines rerouting ships to avoid the Red Sea, led to higher shipping costs, order cancellations, delays in container movement, and an uncertain outlook. Container freight rates also impacted industries reliant on maritime transport. Additionally, the prices of the raw material Soda ash were decreasing during this period.
Asia Pacific
Throughout the first quarter of 2024, the pricing of Sodium bicarbonate in the APAC region experienced notable fluctuations, culminating in Sodium bicarbonate FOB Shanghai in China priced at USD 286/MT by the quarter's end, reflecting a 2.50% average quarterly decrease.
In the Chinese market, these fluctuations were driven by a complex interplay of factors. February saw a significant decline in prices, attributed to the traditional Spring Festival and Lunar New Year closures, which curtailed demand from industries reliant on Sodium bicarbonate. Additionally, labor shortages in producing factories further limited output. To mitigate surplus stock before the holidays, aggressive pricing strategies were employed, compounded by logistical disruptions and accumulation of products in warehouses. Furthermore, the downward trend in raw material prices, notably Soda ash, added to pricing pressures. March continued the downward trend, influenced by currency devaluation, excess supply, normalized freight charges, and heightened market competition. Lower Soda ash prices further impacted downstream trading entities.
However, at the start of the quarter, increased demand for Sodium bicarbonate prompted a temporary price increase, driven by a desire to secure larger quantities and strategic bulk ordering. Manufacturers adjusted pricing strategies to maintain profitability amidst these dynamic market forces, emphasizing the need for adaptability and vigilance for all involved in the Sodium bicarbonate market.
Europe
The pricing dynamics of Sodium bicarbonate in the European market during the first quarter of 2024 have been influenced by various factors. By the end of the quarter, the latest price for Sodium bicarbonate CFR Hamburg in Germany stood at USD 375/MT, showing an average quarterly decline of 2.41%.
Overall, there has been a negative pricing trend, with prices showing a decrease compared to the same period last year. This decline is primarily attributed to significant price reductions seen in key exporting regions, notably the Asia-Pacific (APAC) region, which has had a notable impact on global Sodium bicarbonate markets. During this quarter, the market experienced a substantial price decrease due to reduced demand from downstream sectors and the Euro's depreciation against the USD, leading to higher costs of imported goods. Additionally, seasonal factors such as pre-Lunar New Year and spring holidays in exporting nations have prompted market participants to destock inventories at discounted rates, further contributing to the price decline.
Although there was an initial price increase in January, attributed to supply chain disruptions like shipping line rerouting and disruptions in the Red Sea region, prices decreased overall within the quarter compared to the previous one in 2024.
For the Quarter Ending December 2023
North America:
In the fourth quarter of 2023 (Q4), the North American Sodium Bicarbonate market underwent various influences on pricing. During the initial two months, the prices of sodium bicarbonate significantly decreased, driven by a surplus in the domestic market. s of the latest update, the price for Sodium Bicarbonate CFR New York in the USA for the current quarter stands at USD 440/MT, reflecting an average quarterly increase of 3.14%.
Adding to this, the key raw material for sodium bicarbonate, soda ash, experienced recent weaknesses. Moreover, sectors such as pharmaceuticals, textiles, and food, major consumers of sodium bicarbonate, increasingly adopted a just-in-time purchasing approach. Furthermore, sodium bicarbonate prices saw a decline due to suppliers accumulating excess inventory, a consequence of heightened production that disrupted the balance between supply and demand.
However, as the third month of Q4 unfolded, sodium bicarbonate prices experienced a substantial increase. Initially, the market witnessed a notable uptick in prices due to escalating input-cost inflation and a limited supply of sodium bicarbonate. This situation was exacerbated by a reduction in import volumes from key exporting countries. Additionally, there was an observed rise in production expenses and raw material costs, particularly for soda ash, the primary raw material for sodium bicarbonate production. These factors collectively contributed to the upward price trend throughout the quarter. A
Asia Pacific:
The APAC region's Sodium Bicarbonate market in the fourth quarter of 2023 experienced notable influences on market dynamics and pricing. Primarily, low demand persisted due to uncertain market conditions and limited product inventories at low-end manufacturing units. Factors such as diminished demand, rising raw material costs, and projected price increases in South Korea impacted the Sodium Bicarbonate market in the APAC region during this period. To address excess stock, market players responded to ample inventories and sluggish demand by reducing their quotes. However, prices did rise towards the end of Q4. The surge in raw material prices, particularly for soda ash, and increased production costs played a role in the price appreciation observed in the Indian domestic market. Furthermore, the anticipated rise in soda ash prices in South Korea, a key upstream component for Sodium Bicarbonate production, contributed to an overall price increase. This can be attributed to both the expected uptick in Sodium Bicarbonate prices and an improvement in buying sentiment. As of this quarter, the current price of Sodium Bicarbonate CFR Busan in South Korea stands at USD 344/MT.
Europe -
In the final quarter of 2023, there was a notable volatility in the pricing of sodium bicarbonate within the European market. This fluctuation was predominantly driven by an oversupply of the product at the onset of Q4, causing a decline in demand and subsequent price reduction. Furthermore, a decrease in imports from Asia, particularly China, suggested that local manufacturers were amassing significant inventories to cater to domestic needs. The combination of reduced international and domestic demand, along with surplus inventory among suppliers, led to a substantial decline in sodium bicarbonate prices in October.
Nevertheless, from November until the end of Q4, there was a consistent upward trend in prices. This surge was fueled by heightened demand from downstream industries, coupled with a modest improvement in overall market conditions. Market participants also made efforts to steer the market back towards a more standard course. Additionally, the prices of the raw material, soda ash, exhibited an ascending trajectory, contributing to the overall upward movement in sodium bicarbonate prices in Belgium.
The escalating global freight costs played a pivotal role in shaping the market dynamics for Sodium Bicarbonate in Belgium. As a prominent importing region, Belgium mirrored the pricing trajectory of major exporting countries. Tensions in the Red Sea and the Suez Canal posed a potential threat to all ships passing through, leading to delayed shipments. The price of sodium bicarbonate CFR Antwerp in Belgium for the fourth quarter of 2023 stood at USD 430/MT, reflecting an average quarterly increase of 6.67%. This figure represents the quarter-ending price and illustrates the overall trend of rising prices in the country during this period.
For the Quarter Ending September 2023
North America
Sodium bicarbonate prices in CFR New York remained steady at $415/mt, closing the third quarter of 2023 on a positive note. This price stability showed a clear preference for higher price levels, with an average quarterly increase of 1.21%. During the quarter, the domestic Sodium bicarbonate market saw an upward trend, driven by increasing demand across various industries. Limited to modest inventory levels forced sellers to gradually raise their prices each month, contributing to the optimistic price trend in the United States. Additionally, currency exchange rate fluctuations between the US dollar and the Yuan led to higher import costs in the latter part of the quarter. While inflation slowed in the third quarter of 2023 due to changes in the US economy, the Federal Reserve's decision to raise interest rates kept market participants cautious. Warehouse costs, utilization, and inventory expenses surged at the beginning of July, causing commodities like Sodium bicarbonate to increase in price due to rising inventory management and storage expenses. Midway through Q3, prices decreased significantly due to lower demand from downstream sectors and sufficient inventories, impacting the market. However, by September, prices rebounded and reached their peak trajectory. In summary, it's likely that importing countries experienced a similar trajectory to exporting countries during this period.
Asia Pacific
In the third quarter of 2023, Sodium bicarbonate prices experienced a notable rise, jumping from $301 per metric ton in July to $332 per metric ton FOB Shanghai and from $322 per metric ton in July to $345 per metric ton CFR Busan by September. This trend pointed to a clear preference for higher prices, indicating an average quarterly increase of 5.10% and 2.32% respectively. China, the world's second-largest economy, had a slower growth rate than anticipated in the first half of 2023, which extended into the second half of the year, casting a negative shadow over the beginning of the third quarter. This was mainly attributed to worsening deflation, a high rate of youth unemployment, and weak foreign demand. Several factors contributed to the price surge of Sodium bicarbonate in China during this quarter, but the most influential factors were the strengthening of the Chinese Yuan (RMB) against the US dollar and increased local demand from end-user businesses. Concurrently, the prices of the raw material Soda ash in the Chinese market strengthened, driven by rising energy costs. Market dynamics showed supply constraints as acid factories maintained low inventories. Although maintenance companies gradually resumed production, demand did not show significant improvement, leading to considerable market pressure. The increased value of the Yuan and the weakening US dollar raised export costs, affecting both the local and foreign markets. Market participants meeting general demand kept their supplies relatively low, and manufacturing production remained stable throughout the period. The heightened demand and disruptions in the supply chain created an imbalance, resulting in upward pressure on prices. In the final weeks of September, just before the Golden Week holidays, both freight and manufacturing saw an increase due to a spike in demand and inquiries. Another contributing factor to the price surge was strategic bulk ordering by market participants seeking to replenish their inventories. The heightened demand prompted many buyers to expedite their Sodium bicarbonate procurement, intensifying overall demand pressures during the holiday season.
Europe
In the third quarter of 2023, Sodium bicarbonate costs followed a consistent trend, showing a slight decline from $310 per metric ton in July to $255 per metric ton FOB Izmir in September. This trend indicated a notable price decrease, resulting in an average quarterly drop of 6.99%. Consequently, the global Sodium bicarbonate market experienced an oversupply, causing a significant decline in its market value. Domestic traders, who had accumulated substantial reserves of Sodium bicarbonate, decided to lower their price quotes strategically to mitigate losses, further contributing to the overall market suppression. This price decrease can be attributed to a substantial reduction in the cost of its main raw material, Soda ash, in the preceding months. The lower Soda ash prices subsequently reduced production costs for Sodium bicarbonate manufacturers. This, in turn, made Sodium bicarbonate production more cost-efficient, with these savings passed on to consumers. Additionally, a stable demand forecast for Sodium bicarbonate played a crucial role in the price reduction. To stay competitive, the European domestic market adjusted prices to undercut major exporting countries, thereby influencing the Sodium bicarbonate market in the third quarter.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Sodium bicarbonate prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. Market trading fundamentals were impacted by weak demand and high inventories. In addition, the downward trend in prices further intensified due to the global drop in Soda ash raw material prices. Retail sales fell due to high inflation. Retailers have also struggled with bloating inventory they ordered to meet surges in demand during the outbreak, despite stagnant demand. The price was valued at the end of Q2 2023, representing an average quarterly decline of 6.80%. The biggest drop in US producer prices since the pandemic's beginning was caused by lower gas prices, which served to ease inflationary pressures. The cost of energy, a major input cost for soda ash production, has declined in recent months due to the slowdown in the global economy, and the decline in oil price further supported the lower trajectory of Sodium Bicarbonate.
APAC
The market price of Sodium bicarbonate declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 4.28%. China's import and export activities were mixed. Exports decreased by 3.9% year-on-year, while imports increased by 1.9%. China CFR Shanghai Sodium bicarbonate price chart market showed a downward trend in prices as negotiations progressed. Bearish demand and lowering offtakes from the pharmaceutical and nutraceutical end-user industries kept the market situation feeble. Also, the currency fluctuation further influenced the market trajectory. Moreover, the depreciating raw material soda ash prices further supported the depreciating trend. Due to large inventories of Sodium bicarbonate, suppliers have had to reduce prices to reduce existing inventories. Some market participants are reducing inventories to reduce inventories and improve cash flow. Meanwhile, a new feedstock soda ash factory which is owned by Inner Mongolia Berun Group and started production in late June. This also kept the market feeble for sodium bicarbonate.
Europe
In the second quarter of 2023, the demand for Sodium bicarbonate decreased, leading to a decline in market prices. Sodium bicarbonate prices fell by an average quarterly declination of 5.48%. The availability of domestic supplies and a decrease in demand in the local as well as in the international market impacted commodity prices. The persistent inflation and rising interest rates have negatively affected inquiries in the downstream sector, leading to high inventories and limited sales. As a result, producers in Germany have reduced their plant operations to reduce excess stock in the country, and the producer price index, as per the Eurostat, recorded a decline of 1% from April to May 2023. Despite these challenges, European energy prices have remained favorable for the energy-intensive Sodium bicarbonate industry. The rising cost of energy is another major challenge for the German economy. Germany is heavily reliant on imported energy, and the rising cost of energy is putting a strain on businesses and consumers. Sodium bicarbonate price performance is heavily influenced by weak buying momentum and overstock. Tariffs between China and the West Coast of the United States have recently returned to pre-pandemic levels, significantly easing congestion, and as a result, ocean freight prices have also fallen, affecting general market conditions.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Sodium Bicarbonate market witnessed price fluctuation in the North American region. Prices were witnessed to be on the lower end till the termination of the first month of Q1 2023 because of weak domestic demand, according to market fundamentals. The fact that domestic retailers had ample inventories among themselves also influenced the market scenario negatively. The slowing Sodium Bicarbonate market, brought on by falling feed Soda ash prices, also affected the production cost. At the end of the first quarter, Sodium Bicarbonate values were accessed at USD 498/MT with an average quarterly declination of 2.42%. Additionally, the consolidated prices trajectory for Soda ash further supported the negative trajectory with low production costs. Low freight costs further added to the already feeble market situation.
APAC
The market prices for Sodium Bicarbonate relinquish significantly in the first quarter of 2023 as a result of a decline in consumer demand from the downstream food, pharmaceutical, and nutraceutical industries. The prices were accessed at USD 331/MT FOB-Shanghai at the termination of Q1 2023, with an average quarterly declination of 2.20%, respectively. With the commencement of Q1, the prices were recorded to be stable, with consistent demand and stable production costs. The price of Sodium Bicarbonate was weak and consolidated, and the downstream market demand was general. It is comprehensively estimated that the price of Sodium Bicarbonate will be dominated by weak consolidation operations in the later stage, depending on the downstream market demand. Also, in terms of raw material soda ash, recent prices were consolidated, supporting the depreciating trajectory.
Europe
In the first quarter of 2023, the prices for Sodium Bicarbonate in the European market showcased a varying trajectory. At the end of the first quarter of 2023, Sodium Bicarbonate values were accessed at USD 432/MT CFR Hamburg with an average quarterly declination of 1.94%. With the commencement of Q1, the prices were recorded on a positive note with new production activities and stable feedstock Soda ash prices. Later at the start of March, due to lackluster demand from the domestic market, the market fundamentals showed that Sodium Bicarbonate prices depreciated throughout the month. The availability of sufficient inventories on the shelves of domestic merchants had combinedly impacted the market situation. Decreasing feed Soda ash prices additionally influenced the production cost keeping the Sodium Bicarbonate market feeble. Decreased freight costs further reduced the arbitrage gap and supported the negative trajectory.
For the Quarter Ending December 2022
North America
In Q4 2022, Sodium Bicarbonate's domestic North American market exhibited an erratic trend. Due to increased demand from end-user businesses, sodium bicarbonate prices increased in the first half of the quarter. Due to the high inventory level on the market, prices declined in the first part of Q4. Due to limited demand from local shops and consumers, stockpiling of the products encouraged a decrease in the product's price. Prices climbed in the final month of the quarter due to an increase in the cost of raw materials in China's domestic market, which it largely imports. In addition, prices continued to fall in the second part of Q4 2022 because of weak demand and a glut of available goods. As the quarter ended, the prices for Sodium Bicarbonate were assessed at around USD 538/MT for CFR New York in December.
APAC
During the fourth quarter of 2022, China's domestic sodium bicarbonate market experienced widespread fluctuations. Prices were decreased as a result of China's manufacturing activity unexpectedly returning to a declining range at the end of December. The manufacturing sector's supply and demand sides recently resumed contracting after recovering from expanding the previous month. As we enter the second half of Q4 of 2022, China's economy is still difficult to manage due to elements whose effects were unanticipated, such as complex economic policies and a spike in Covid cases in the country, which slightly boosted costs for the second month in the quarter. Domestic producers and traders had access to enough supplies to satisfy domestic demand. In China's domestic market, prices declined for the entire 2022 first quarter. Towards the end of the quarter, the prices for Sodium Bicarbonate were assessed at around USD 355/MT for FOB-Shanghai in December.
Europe
Prices for sodium bicarbonate fluctuated throughout Europe during the fourth quarter of 2022, which was accompanied by a decline in demand from end-user sectors and shaky market dynamics, such as those in the food additives industry. Large inventories in the European housing market during the first half of Q4 supported the downward trend. Additionally, since local producers and merchants were compelled to lower their asking prices because of the product's widespread availability on the market, prices continued to decline in the second half of Q4. Due to a rise in demand from end-user industries, prices were raised at the conclusion of the quarter. Prices for Sodium Bicarbonate were estimated in December to reach about USD 460/MT for CFR Hamburg toward the conclusion of Q4 of 2022.
For the Quarter Ending September 2022
North America
In Q3 2022, the domestic Sodium Bicarbonate market in North America showed a declination trend. The "zero-covid tolerance" regulation implemented in China, a large supplier, has severely limited the supply of a variety of food chemicals to the United States from the previous quarter, including Sodium Bicarbonate. Due to the heat wave and power shortage, many production facilities in China had to shut down during the second half of Q3, and some sites that made food chemicals were undergoing maintenance, which had a detrimental impact on the US trade. The reduction in demand in the nation was attributed to a number of issues by various businesses and industries, including inflation, supply restrictions, rising interest rates, and increased uncertainty regarding the economy's future. In terms of demand, the US's decreasing trajectory has mostly been caused by a lack of consumer demand. In the months of July through September, the CFR New York prices declined from $589/mt to $527/mt.
APAC
In the third quarter of 2022 Sodium Bicarbonate market saw a declining trend throughout the Asia Pacific region, with FOB Shanghai discussions in the domestic Chinese market decreasing from $412/mt to $349/mt between July to September. Low raw material costs, subdued consumer spending, and slow end-user industry demand are a few of the variables that have driven this price trend. During the first half of Q3, big suppliers only placed orders for immediate use due to the weak offtakes and the underwhelming downstream demand. When the markets resumed operations in the final week of July after the shutdown, several manufacturing facilities underwent maintenance, which impacted the availability of Sodium Bicarbonate for domestic and foreign suppliers. Extreme weather and power outages have a further detrimental effect on China's market dynamics. China's demand also continued to be weak.
Europe
Between July and September, the prices for Sodium Bicarbonate in Germany decreased from $495/MT to $451/MT CFR Hamburg, signaling a downward tendency for the third quarter of 2022. During this quarter, there was also a lackluster demand from the food and beverage end-user market. The logistical issues brought on by continued transportation delays and lengthy port congestion this quarter worsened Germany's economic crisis. The ongoing port restrictions in China and the unrest in Russia and Ukraine have worsened the business climate in Europe. On the demand front, offtakes in the end-user industries during this quarter ranged from modest to stable.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the market trend of Sodium Bicarbonate in the North American region remained static due to consistent offtakes in the downstream industries, including food and beverages and pharmaceuticals. As the USA was already struggling with high inflation and Supply constraints, the comeback of COVID -19 in China's commercial hubs during the last week of April worsened the supply of Sodium Bicarbonate in the country. Throughout the entire quarter, local traders and purchasers were concerned about the high prices of food additives and raw materials due to geopolitical upheaval in Russia and Ukraine and the volatile nature of oil prices.
APAC
The Asia Pacific Region's Sodium Bicarbonate market demonstrated an upward trajectory during the second quarter of 2022. China's domestic food and beverage industry had a strong end-user demand throughout the quarter. Given that China is the world's top supplier of food additives, the covid outbreak effectively delayed the delivery of the product in the foreign markets, leading to soaring freight prices and supply and port bottlenecks. China's "irrational" Zero Covid policy, which hampered the production and shipping of everything from necessities to commodities, hurt supply chains. The dismal results demonstrated how much China's economy has slowed due to intermittent lockdowns in some of the nation's most important economic hubs. Restrictions on transportation and logistics networks caused product distribution across the nation and to important foreign shipping ports to be hindered.
Europe
The domestic market trend for Sodium Bicarbonate in the European region increased during the second quarter of 2022 despite the geopolitical conflict between Russia and Ukraine. The crisis made it harder for exporting nations to do business even while it raised transportation costs and hindered the flow of commodities into Europe. Due to suppliers having enough inventory to meet all domestic demand, end-user industries, including the food and beverage industries, experienced strong offtakes during the entire quarter.
For the Quarter Ending March 2022
North America
In North America, prices of Sodium Bicarbonate continued to surge during the Q1-2022, on account of enhanced consumption in food and beverage industries. Growing number of bakeries and confectioneries propelled the prices of Sodium Bicarbonate upward. Furthermore, the escalated prices of upstream, Soda Ash also contributed heavily to the price hike of Sodium Bicarbonate in the considered territory. Besides, skyrocketed crude oil prices and freight charges further fuelled the Sodium Bicarbonate prices. Conclusively, the assessed prices of Sodium Bicarbonate were at USD 1480/Tonne FOB Illinois in the month of March.
Asia Pacific
The Asia-Pacific region witnessed an upward trajectory in the prices of Sodium Bicarbonate during the 1st quarter of 2022. The prime reason driving the Sodium Bicarbonate market is robust demand from food and beverage industry. As the consumption of baked and fried food increased in the Asian Countries, so is the offtake of Sodium Bicarbonate. Additionally, shortage of cargoes and congestion on ports, restricting the shipment of goods, further added to the already augmenting price value of Sodium Bicarbonate. Moreover, surged crude oil prices owing to the ongoing conflict between Russia and Ukraine and enhanced feedstock prices supported the price hike of Sodium Bicarbonate. In the domestic market of India, the prices of Sodium bicarbonate landed at USD 497/Tonne Ex-Mumbai in the month, March.
Europe
In Europe, the prices of Sodium bicarbonate were soaring throughout the 1st quarter of 2022 by approximately 4.5%, backed by firm downstream demand. The European countries like Germany, Russia, and the United Kingdom were showcasing strong demand for liquid detergent, in turn, enhanced the consumption of Sodium Bicarbonate. Furthermore, intensified fuel prices due to the war tensions between Russia and Ukraine, further increment in logistic charges, and congested ports contributed to the price hike of Sodium Bicarbonate. Growing prices of Soda Ash (feedstock) also supported the overall rise in Sodium Bicarbonate Prices.
For the Quarter Ending December 2021
North America
Sodium Bicarbonate prices kept rising in the fourth quarter of 2021 across the North American region on the back of the firm offtakes from the food and beverage, pharmaceutical, and other downstream industries. The disrupted supply chain and increased raw material costs have supported the market trend in Q4. Soaring freight charges along with prolonged transport issues and the sudden spread of the Omicron variant of the coronavirus have further exacerbated the increased prices of Sodium Bicarbonate across the North American region.
Asia
During the 4th quarter of 2021, the market trend of Sodium Bicarbonate continued to showcase positive sentiments across the North American region. In the Chinese domestic market, on the back of the firm offtakes, the prices of Sodium Bicarbonate were assessed at USD 452/mt FOB Qingdao in the first week of October. In India, Ex-Mumbai Sodium Bicarbonate prices rose significantly in quarter four and shot up from USD 378.04/mt to USD 415.11/mt from October to December. A hike in the production cost due to inflationary pressure also contributed to the price escalation in the country. Due to the consistent demand from the Indian domestic market, Sodium Bicarbonate manufacturers revised their offers in order to sustain their profit margins. The prices are expected to remain stagnant in Q1 2022, as the demand fundamentals from the domestic market are not going to change any time soon in the country.
Europe
In Europe, the market trend of Sodium Bicarbonate remained firm throughout the 4th quarter. A hike in demand was observed from the downstream manufacturers in Q4 2021. The increased commodity prices, skyrocketing freight costs, high feedstock prices, supply bottlenecks, and the emergence of the Omicron have exacerbated the Sodium Bicarbonate market in the European region. In terms of demand, strong offtakes from the pharmaceutical and food and beverage industries were observed during this quarter.
For the Quarter Ending September 2021
North America
In North America, Sodium Bicarbonate prices witnessed an uptrend in the third quarter of 2021. In the US, demand from the feed, food and pharmaceutical industry remained firm throughout this quarter.Despite ample supplies of Sodium Bicarbonate, a hike in the pricing trend was observed backed by the spike in the values of its raw materials. In addition, many production units in the US remained closed as a repercussion to Ida hurricane that made landfall in the Gulf Coast of the US in August end that directly impacted the supply chain of feedstock which consequently surged the prices of Sodium Bicarbonate in this timeframe.
Asia
In Asia, Sodium Bicarbonate prices soared during the third quarter of 2021 backed by the firm demand from the downstream industries. In addition, delayed imports backed by several factors such as clogging on interoceanic trade routes, unavailability of the shipping containers along with the coronavirus zero-tolerance protocol measures led to the scarcity of the feedstock which also contributed to the pricing trend of Sodium Bicarbonate. In India, Sodium Bicarbonate market outlook appeared bullish due to the robust demand and tight supply fundamentals that kept the pricing trend high throughout this quarter. Moreover, rising production cost due to the freight congestion coupled with inflation compelled manufacturers to make positive revisions to sustain profitability. Therefore, Sodium Bicarbonate price witnessed a significant hike and settled around USD 374.07/MT Ex-Mumbai.
Europe
In the European Market, Sodium Bicarbonate observed surge in the pricing trend during the third quarter of 2021. Demand outlook remained firm throughout the quarter following the improvement in its offtakes from the downstream industries after the resurgence of industrial and commercial activities. Moreover, delayed imports and high freight charges led to the increment in the values of Sodium Carbonate in this timeframe.
For the Quarter Ending June 2021
North America
Sodium Bicarbonate prices showcased a stable rise during this quarter, bolstered by firm offtakes from the downstream end user segments and rising feedstock prices. On the demand side, strong offtakes of the product from the regional pharmaceuticals sector were reported throughout the quarter, while in other segments demand showed a staggering rise driven by industrial rebound. In addition, major manufacturers of Sodium Bicarbonate revealed that they received strong demand from the automotive and photovoltaic cell market. Therefore, a considerable rise in the price of this product was observed during Q2 2021, in USA.
Asia
The Asian market witnessed mixed sentiments for Sodium Bicarbonate during this quarter, which varied country over country. In China, Sodium Bicarbonate maintained buoyancy throughout the quarter amid volatile demand condition, while the prices maintained firmness taking support from the factors like inflation and soaring raw material prices. Meanwhile in India, prices primarily fluctuated with the demand fundamentals, which were changing rapidly due to the resurgence of pandemic in the country. However, several Indian manufacturers raised Sodium Bicarbonate offers by a significant percentage to absorb the sharp surge in the overall production cost. Tata Chemicals raised its ex-works offers for Technical Grade Sodium Bicarbonate to USD 275.61/mt in June, up by about USD 13/mt from its last revision.
Europe
The European Sodium Bicarbonate manufacturers also reported stable demand while the availability remained adequate enough. In Europe, the demand for Sodium Bicarbonate remained sturdy from the pharma segment, for the production of antacid, while other sectors remained modest. Demand for the food grade material also reported strong gains with rising inflation also a factor affecting the regional demand. On the other side, prices of this product primarily affected by strong demand from the automotive sector of the region, as European automotive sector showcased more offtakes in comparison with other regions.
For the Quarter Ending March 2021
North America
Sodium Bicarbonate demand maintained an overall stability throughout the quarter across North America. The demand side was majorly driven by food, pharmaceutical and animal feed segment, while other segments like water treatment, Industrial chemicals remained comparatively low performing in the region. However, in the midst of stable demand, the supply remained limited across the region, which was due to the limited availability of raw materials like Ammonia and weather-related constraints. Freezing fallout in USA curtailed the production activity across several downstream sectors that reduced the availability pf the key raw materials.
Asia
The Asian market demonstrated mixed sentiments for Sodium Bicarbonate in Q1, with demand largely varying country over country. However, the overall demand for the Asian market remained stable with prices fluctuating in limited range. In China, the price of Sodium Bicarbonate depicted an overall downward trajectory, backed by stable demand with abundant availability reported across the country. While in India, prices fell during February which later resumed strength in March. The reason behind this was improved production activities in the midst of modest demand. The prices of Sodium Bicarbonate hovered around USD 300/MT and USD 261.8/MT in China and India respectively during the month of February.
Europe
The European market experienced stability in demand for Sodium Bicarbonate during Q1 2021, bolstered by steadily improving economy post recovery from pandemic during March. Raw material availability remained a matter of concern in the region with several reasons, like curtailed transportation activity after unfavourable weather scenario reduced imports from USA and critical shortage of shipping containers exacerbated the tightness in overseas supply. However, demand from the downstream segments like animal feed and pharmaceutical sector maintained stability, which primarily supported the overall market in this quarter.
For the Quarter Ending December 2020
North America
Sturdy demand from end-use industries like chemicals, pharmaceuticals, water treatment in Q4 as people remained highly aware for hygiene and cleanliness after buzz of resurgence of Coronavirus in several parts of Europe. Its demand is expected to stay strong supported by the government initiatives to increase the R&D activities in the region. The pharmaceutical companies contributed to the high demand of sodium bicarbonate in this region in Q4,2020.
Asia
Since Asia Pacific Region is dominating region from manufacturing of Sodium bicarbonate, it witnessed incredible gains backed by its consistent increment in its usage after Covid-19 Outbreak. For the quarter ending December one of the largest players of Sodium Bicarbonate based in India, reported that it has witnessed a sharp increment in its imports. Although the local demand for countries like India and China remained in a stable to firm range, consistent increase in export demand from pharmaceutical sector provided a strong push in its market fundamentals. Consequently, Sodium Bicarbonate prices for the quarter ending December averaged at USD 280 per MT in India.
Europe
Demand for Sodium Bicarbonate in Europe remained in a stable to firm range buoyed by its consistent usage in pharmaceutical and healthcare sector. As in Europe, the packaged food material demand increased due the threat of new coronavirus which further enhanced the demand for Sodium Bicarbonate from food industry. In line with the slight upward push in the demand fundamentals for Sodium Bicarbonate in Europe its prices also increased marginally in the regional market.
