For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American sodium formate market witnessed moderate growth. Factors contributing to this trend include advancements in technology, increasing livestock production, and the use of sodium formate in animal husbandry. The expanding industries, de-icing applications, and the leather industry are driving the overall sodium formate market. Within North America, particularly in the United States and Canada, there is a growing demand for sodium formate from various sectors such as oil & gas, textile, and food & beverage. Sodium formate serves multiple purposes within these industries, including use as a food additive, anti-corrosion agent, and in dyeing and printing processes. Additionally, it is an effective de-icing agent for roads and runways, especially in regions with harsh winters. However, fluctuations in raw material prices and environmental concerns associated with production and disposal remain challenges for the market.
APAC
In the second quarter of 2024, the Sodium Formate market in APAC region witnessed steady decline. This versatile compound found applications across various industries, including leather tanning, de-icing solutions, and chemical synthesis. Despite stable demand, supply constraints posed potential challenges which led to the downward trend in the market. For specifically China, the market remained especially bearish with decline in the prices by approximately 17% compared to the previous quarter. While the first half of the quarter and second half of the quarter saw marginal decline of 2% the overall market sentiment was bearish as evident from the previous quarter trends. The price for sodium formate stood at USD 216/MT FOB Shangdong at the end of the quarter. China’s economic policies, environmental regulations, and industrial expansion significantly influenced market dynamics during this period. As the global economy continued to recover, Sodium Formate remained a crucial component for several sectors. Its cost-effectiveness and unique properties contributed to its sustained relevance. In conclusion, the, market remained bearish with steady decline in the prices.
Europe
During Q2 2024, the sodium formate market in Europe experienced steady growth. Industries across various sectors, including food and beverage, oil and gas, and textiles, continued to rely on sodium formate. In the food industry, it served as a food additive, enhancing preservation and stability. The leather industry also contributed to demand, using sodium formate in tanning and pickling processes. Stricter environmental regulations in Europe prompted industries to seek safer alternatives, and sodium formate emerged as a viable option due to its lower environmental impact. European countries relied on sodium formate for de-icing roads, runways, and other surfaces during harsh winters. BASF’s strategic moves, including the acquisition of alkoxylate production assets in Asia Pacific, positioned them well in the global market. Furthermore, monitoring regulatory changes and technological advancements will be crucial for the sodium formate market in Europe.
