For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Sodium Lignosulphonate market in North America saw a significant decline in prices, particularly in the USA, which experienced the most pronounced impact. This downward trend was driven by several interrelated factors, including diminished demand from the construction sector, elevated inventory levels, and low feedstock costs. The sluggish construction activity, characterized by reduced homebuilding rates and weakened consumer confidence, directly resulted in decreased procurement of Sodium Lignosulphonate, as this product is commonly utilized as a concrete additive and dispersant in construction applications.
When comparing Q3 2024 to the same period last year, prices have fallen by 4.5%, indicating a persistent downward trajectory in the market. Additionally, the quarter-on-quarter analysis reveals a substantial 14% decrease, emphasizing a consistent decline in market values.
By the end of the quarter, Sodium Lignosulphonate was priced at USD 611/MT FOB Texas. This price point underscores the prevailing negative pricing environment and highlights the significant pressures exerted on market dynamics.
APAC
Throughout Q3 2024, the Sodium Lignosulphonate market in the APAC region experienced a notable decline in prices, driven by several key factors. A significant contributor to this downturn was the subdued demand from downstream industries, particularly within the construction sector. The construction industry, a major consumer of Sodium Lignosulphonate for its role as a concrete additive, faced reduced activity due to economic uncertainties. This decline in construction spending diminished the need for procurement, placing downward pressure on prices. Moreover, weak international orders further exacerbated the situation, as many regional markets struggled to secure contracts for construction and related projects. Low feedstock prices also influenced purchasing behavior, prompting buyers to consider more cost-effective alternatives, thereby stifling demand for Sodium Lignosulphonate. In China, where the most pronounced price changes occurred, the quarter recorded a 2% decline compared to the previous quarter. In contrast, prices surged by 17% compared to the same quarter last year, illustrating market volatility. By the end of the quarter, Sodium Lignosulphonate was priced at USD 262/MT FOB Qingdao, reflecting the prevailing negative sentiment in the pricing environment.
MEA
Throughout Q3 2024, Sodium Lignosulphonate prices in the MEA region displayed a consistent downward trend, driven by several key factors. A significant decline in demand from downstream industries, particularly within the construction and infrastructure sectors, resulted in reduced offtake. This, combined with an increase in product availability in the market, created oversupply conditions that exerted considerable downward pressure on prices. Furthermore, stable feedstock costs and the influx of competitively priced imports from various sources further contributed to the overall decline in Sodium Lignosulphonate prices. In Saudi Arabia, the market experienced the most pronounced price fluctuations during this quarter, recording a 4% decrease compared to the previous quarter. This notable reduction underscores the ongoing challenges faced by the market in maintaining price stability amidst shifting supply-demand dynamics. In contrast, when compared to the same quarter last year, prices for Sodium Lignosulphonate increased by 4.5%, reflecting a complex pricing landscape. The quarter concluded with Sodium Lignosulphonate priced at USD 698/MT CFR Jeddah, aligning with the overall decreasing pricing environment observed throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Sodium Lignosulphonate market experienced stable pricing due to several key factors. The primary driver was the balanced demand-supply dynamics observed throughout the quarter. Adequate inventory levels and consistent production rates helped prevent significant price fluctuations. Additionally, steady upstream Sodium Hydroxide prices maintained predictable production costs, supporting stable market conditions. The subdued activity in the downstream construction sector, a major consumer of Sodium Lignosulphonate, also contributed to the overall stable pricing environment. The construction industry's muted performance, influenced by high mortgage rates and economic challenges, led to a cautious procurement approach among traders and buyers, further stabilizing prices.
Focusing on the USA, the market showed a trend of stability, with Sodium Lignosulphonate prices remaining largely unchanged. Compared to the previous quarter in 2024, prices saw a slight decrease of 1%, reflecting a cautious market sentiment. There was a 0% decline compared to the same quarter last year, indicating a broader trend of price stabilization over the year. Interestingly, the price comparison between the first and second half of the quarter showed no significant change, reinforcing the stable sentiment.
By the end of the quarter, the price was recorded at USD 745/MT FOB Texas, underscoring the consistent pricing environment. This stability can be attributed to balanced supply chains, moderate demand, and subdued economic activity, painting a picture of a stable yet cautious market.
APAC
In Q2 2024, the Sodium Lignosulphonate market in the APAC region exhibited a pronounced upward trend, driven by several pivotal factors. A significant driver was the escalating production costs due to the rising prices of feedstock, notably Sodium Hydroxide. Moreover, logistical constraints and higher ocean freight charges exacerbated supply chain challenges, further inflating market prices. The construction sector, a major consumer of Sodium Lignosulphonate, showed robust activity levels, reinforcing demand in the first half of the quarter. This quarter's price increase is also attributed to strategic production planning and inventory management by manufacturers, who adjusted outputs to align with fluctuating market needs.
Focusing on China, which experienced the most substantial price changes, the market dynamics were particularly influenced by seasonal demand fluctuations and heightened export activities. China saw a remarkable 22% year-on-year increase in Sodium Lignosulphonate prices, underscoring the strong market sentiment. Compared to the previous quarter in 2024, there was a 7% surge, indicating a steady rise in demand and supply pressures. The quarter concluded with the price of Sodium Lignosulphonate at USD 287/MT FOB Qingdao, showcasing a stable yet positive pricing environment. Overall, the quarter was characterized by a consistent upward trajectory in prices, driven by both intrinsic market demands and extrinsic supply chain factors, solidifying a positive sentiment in the Sodium Lignosulphonate market.
MEA
The second quarter of 2024 saw a notable increase in Sodium Lignosulphonate prices across the MEA region, driven by a combination of factors. Key influences included rising production costs, particularly due to higher upstream Sodium Hydroxide prices, and logistical challenges affecting supply chains. Additionally, increased demand from the construction sector, bolstered by regional infrastructural projects and economic initiatives, amplified market pressures. Persistent availability issues and heightened global freight charges further exacerbated the price surge, creating a robust upward pricing environment.
In Saudi Arabia, the Sodium Lignosulphonate market experienced the most significant price changes, reflecting broader regional trends. This quarter, characterized by an intense demand-supply imbalance, saw prices rise by 10% compared to the same quarter last year, underlining significant demand growth and supply constraints. The quarter-on-quarter increase of 4% from the previous quarter in 2024 further depicted the ongoing pressures in the market. Seasonality played a pivotal role, with the construction sector's peak activity season amplifying demand, while supply remained constrained due to logistical and production issues.
The first half of the quarter saw a smaller rise compared to the latter half, with prices climbing by 2% in the latter part, illustrating an acceleration in upward price momentum as the quarter progressed. The end-quarter price of Sodium Lignosulphonate stood at USD 750/MT CFR Jeddah, highlighting a sustained positive pricing trajectory. Reflecting on these dynamics, the pricing environment in Q2 2024 has been decisively positive, driven by robust demand and constrained supply, signaling a strong upward trend in market sentiment.
For the Quarter Ending March 2024
North America
The Sodium Lignosulphonate market in North America experienced an overall positive pricing trend in Q1 2024. Significant factors influenced prices, including limited stock availability and reduced production rates. These factors contributed to an increase in margins, with prices rising by 5% compared to the previous quarter in 2024.
Additionally, there was a negative price comparison between the first and second half of the quarter, indicating a slight decrease in prices during the latter half due to low demand and increased stock availability. The quarter-ending price for Sodium Lignosulphonate in the USA was recorded at USD 729/MT, DEL Louisiana, during March 2024 further confirming the decreasing sentiment in the market.
Meanwhile, disruptions in trade routes such as the Panama and Suez Canal affected global trade, leading to decreased product supplies. Despite these challenges, the US construction industry showed resilience, driven by improvements in the nation's GDP, which underscored the complex dynamics of global economic interactions. Additionally, there was a third consecutive month of acceleration in charge inflation as companies sought to offset rising costs by passing them on to consumers.
APAC
The APAC region Sodium Lignosulphonate market encountered challenges in the first quarter of 2024, characterized by slight fluctuations in prices towards the northward direction and limited supplies. The supply constraints significantly impacted prices as adverse weather conditions and limited stock availability disrupted production and decreased supply. Secondly, the demand for Sodium Lignosulphonate remained moderate, with the downstream industry showing only moderate interest in stocking. Lastly, attacks on ships in the Red Sea led to route redirections, resulting in increased transit time and freight costs, further impeding exporters in the region. In China, the largest market for Sodium Lignosulphonate, prices remained relatively stable throughout the quarter. The market experienced an economic slowdown and destocking in the downstream sector. Limited stock availability and cautious market sentiment also influenced pricing dynamics. Additionally, no plant shutdowns were reported during this period. The trend for Sodium Lignosulphonate prices in China remained stable at the end of the first quarter of 2024, with no significant changes observed. Prices remained consistent at USD 265/MT - FOB Qingdao during March 2024.
Europe
The increase in Sodium Lignosulphonate prices observed in the European market during the quarter ending March 2024 reflected moderate demand and a shortage of suppliers. Challenges faced by the European supply chain, including logistics disruptions linked to the Red Sea turmoil, influenced the Sodium Lignosulphonate pricing trend at that time. Reduced downstream production rates resulting from supply disruptions led market participants to approach potential changes cautiously. Despite subdued construction activities, limited supplies were noticeable in the German domestic market. Meanwhile, global crude oil prices surged, exceeding USD 87 per barrel, driven by factors such as tighter physical markets, an extension of OPEC+ production cuts, and geopolitical tensions. However, Sodium Lignosulphonate prices in the German market remained stable, attributed to a narrower demand-supply gap and limited stock availability amid rising input costs midway through the quarter. Supply concerns became more prominent in March 2024 as the Easter holidays approached, especially with German ports facing closures during weeks 13 and 14 due to the holidays. Additionally, the export value of Sodium Lignosulphonate increased in January 2024, indicating a shortage of inventories amid production rate cuts, further exacerbating Sodium Lignosulphonate prices during the quarter.
Middle East Africa
In the first quarter of 2024, the Middle East and Africa (MEA) region experienced a significant positive shift in the pricing of Sodium Lignosulphonate. The construction industry witnessed a surge in demand for Sodium Lignosulphonate, resulting in price increases. Limited availability of stocks also contributed to the price surge, as manufacturers had to adjust their prices based on inventory levels. Additionally, fluctuations in crude oil prices impacted the production costs of Sodium Lignosulphonate, further influencing market prices. Among the countries in the MEA region, Saudi Arabia experienced the most significant changes in Sodium Lignosulphonate prices. The construction industry in Saudi Arabia maintained strong demand, leading to a bullish market situation. The supply of Sodium Lignosulphonate was moderate, with limited availability of stocks. Despite these challenges, the market in Saudi Arabia demonstrated resilience, with manufacturers increasing prices to sustain their margins. In terms of price trends, the latest available price for Sodium Lignosulphonate CFR Jeddah (Saudi Arabia) in the first quarter of 2024 was USD 718/MT during March 2024. Imports in the Middle East were anticipated to decrease during the January-March period due to plant closures, reduced regional demand, and logistical challenges in shipping to destinations west of the Suez Canal. Nevertheless, imports were projected to rebound in the second quarter as plants resumed operations and regional demand improved.
For the Quarter Ending December 2023
North America
The Sodium Lignosulphonate market witnessed a relatively stable price in the USA in the fourth quarter of 2023. The US market grappled with prolonged economic uncertainties marked by escalating inflationary pressure and an economic slowdown, significantly influencing product pricing dynamics.
Recent analysis indicated partial improvements in some sectors, such as stability in the construction sector and a marginal seasonal rebound in automotive. However, these recoveries did not translate to chemical commodities' prices, as excess commodities and international demand remained pivotal in price fluctuations. Despite economic challenges, the arrival of the festive season generated optimism, with traders anticipating increased Christmas and Winter demand. Within this context, the Sodium Lignosulphonate market in the USA maintained price stability due to consistent demand in the downstream construction industry, despite overall economic slowdown and reduced operational activities throughout the quarter.
Simultaneously, destocking efforts persisted due to prolonged weak demand and cost considerations, leading companies to consistently decrease their purchasing activities amid elevated inflation. On the pricing front, manufacturers continued the trend of lowering factory gate charges, driven by competitive pressures and reduced input costs. The price of Sodium Lignosulphonate was assessed at USD 729/MT, FOB Texas (USA) during December 2023.
Asia
The APAC region experienced mixed trends in the pricing of Sodium Lignosulphonate during the fourth quarter of 2023. Several factors influenced the market and led to fluctuations in prices. In December 2023, the Sodium Lignosulphonate market in China experienced weakness, maintaining a stable price trend. The downstream demand in the construction industry showed a moderate increase, contributing to the overall market conditions. However, a lack of substantial growth in domestic and regional inquiries was a key factor leading to a recent pause in Sodium Lignosulphonate prices in the Asian market. Manufacturers and traders adopted a cautious stance, monitoring market momentum in response to supply chain challenges and anticipated low demand in the regional market due to concerns about high supply. Furthermore, recent attacks on ships in the Red Sea compelled companies to redirect routes via the Cape of Good Hope, South Africa. This shift was anticipated to result in a significant rise in transit time, freight, and insurance costs, posing additional challenges for exporters in Asia. The Chinese economy struggled to gain momentum for several months, despite government efforts to inject optimism through various policies. While some sectors received assistance from these policies, it was deemed insufficient to sustain the market for an extended period. Participants anticipated a significant long-term rebound, expected to occur in the New Year or during the Lunar holidays in the country. Meanwhile, Sodium Lignosulphonate prices fluctuated based on availability and international demand for the commodity. Finally, the quarter ended with the latest price of Sodium Lignosulfonate - FOB Qingdao in China at USD 245/MT.
Europe
In the fourth quarter of 2023, there was a decline in Sodium Lignosulphonate prices in the European market. European traders and manufacturers primarily focused on the reduced demand from the downstream construction industry, resulting in only modest price fluctuations despite concerns about freight disruptions at the end of the quarter. The extended transit time for imports was a notable factor, as highlighted by a producer. Additionally, the sufficient availability of inventories had a negative impact on prices. Germany experienced the most significant price changes, following a bearish trend for most of 2023. Efforts to reduce operating rates as a strategy to protect profit margins for producers and traders proved inadequate, given the competitive pressures from the import market. Despite production cutbacks, Sodium Lignosulphonate supplies continued to face challenges due to low demand in Q4 of 2023. Notably, the European Sodium Lignosulphonate market performed better than its global counterparts, prompting import suppliers to redirect shipments to the region during the global market downturn in November 2023.
Middle East Asia
In the fourth quarter of 2023, the Sodium Lignosulphonate market in the MEA region underwent various influences on pricing dynamics. Firstly, there was a moderate demand for the product, which remained stable throughout the quarter. The consistent demand found support from the construction sector, particularly in Saudi Arabia. Secondly, the supply of Sodium Lignosulphonate stayed at a moderate to low level, creating a slightly tight market. Thirdly, global crude oil values continued to rise, posing a potential threat of further inflation in the global market. In Saudi Arabia, the prices of Sodium Lignosulphonate CFR Jeddah remained stable, experiencing a slight decrease of 1% compared to the previous quarter. There was no significant price change compared to the same quarter of the previous year. Additionally, there was no notable price difference between the first and second halves of the quarter. In conclusion, the Sodium Lignosulphonate market in the MEA region witnessed stable demand, moderate to low supply, and the impact of rising global crude oil values. Saudi Arabia, as the focal country, demonstrated a stable price trend with a slight decline compared to the previous quarter. The most recent price for Sodium Lignosulphonate CFR Jeddah in Saudi Arabia for the current quarter was USD 682/MT.
For the Quarter Ending September 2023
North America
In the third quarter of October 2023, the North American Sodium Lignosulphonate market faced challenging conditions, primarily marked by a bearish trend. During this period, the price of Sodium Lignosulphonate in the United States saw a notable decline of around 2%. This price decrease was a result of several interconnected factors that collectively impacted the market negatively. Notably, the construction industry, a significant consumer of Sodium Lignosulphonate, experienced sluggish demand due to a variety of factors, including economic uncertainty and a slowdown in construction activities. This lacklustre demand combined with a relatively high supply of Sodium Lignosulphonate exerted further pressure on prices. One notable contributing factor to the challenging market conditions was the Panama Canal drought situation. This unexpected event disrupted export demand for Sodium Lignosulphonate, leading to a buildup of inventories at various ports. In response to the growing inventory issue, traders adjusted their pricing strategies, offering Sodium Lignosulphonate at more competitive rates to clear excess stock. Another critical element affecting the market dynamics was the ongoing labour shortage in the United States. The labour shortage was widespread, with the US Chamber of Commerce reporting that job openings exceeded pre-pandemic levels while labour force participation rates remained below their pre-pandemic levels. This labour challenge had a significant impact on the construction industry, further diminishing its demand for Sodium Lignosulphonate.
Europe
In the third quarter of 2023, the Eurozone Sodium Lignosulphonate market experienced a bearish trend. This downturn was exacerbated by the rise in interest rates, which had a discouraging effect on potential construction projects. Notably, there was a significant reduction in housing activity, particularly within the German construction sector, leading to a notable decrease in overall construction activities. Within this challenging landscape, the broader economic situation in the Eurozone was marked by mixed signals. The manufacturing sector showed signs of contraction, underscoring the difficult economic conditions towards the end of the quarter. Despite the decrease in input costs, businesses across the Eurozone continued to implement cost-cutting measures, including workforce reductions, reduced purchasing activity, and inventory management. As a result, many companies extended their production cutbacks, reflecting an overarching sense of caution and uncertainty that pervaded the economic outlook. The third quarter of 2023 in the Eurozone was characterized by the construction industry's decline, subdued housing activity, and a cautious business environment, as it grappled with a variety of challenges.
Asia
In the third quarter of 2023, the Sodium Lignosulphonate market in Asia, primarily focused on China, experienced a roller-coaster ride of fluctuating prices and market dynamics. Initially, the product's price decreased by 1% due to sluggish construction activities and falling prices of key feedstock components. This decline was exacerbated by heavy rainfall, which reduced demand and strained manufacturers' inventory management. However, the market's fortunes reversed in the latter two months of the quarter, with prices surging by 1% and 2%. This turnaround was attributed to increased global Sodium Lignosulphonate prices and heightened downstream procurement activities. Efficient port shipments and low refinery inventory contributed to this positive trend. The refined Sodium Lignosulphonate segment, in particular, saw increased demand from downstream industries, which drove prices upwards. Despite this recovery, challenges remained, as adverse weather conditions and intense market competition influenced the market landscape. Some downstream entities adopted a cautious approach, fostering a wait-and-see sentiment. The quarter's performance highlighted the market's sensitivity to external factors and its ability to adapt to changing conditions.
Middle East
In the third quarter of 2023, the Sodium Lignosulphonate market in the Middle East, with a specific focus on the Saudi Arabian market, exhibited a dynamic performance. Initially, during the first month of the quarter, the price of the product witnessed a 1% decrease. This decline was primarily attributed to the subdued state of the cement and concrete sectors, where construction activities were notably at a moderate to low level. Furthermore, the declining prices of the feedstock caustic soda had an additional impact on the decreasing prices of the commodity. However, the latter two months of the quarter saw a reversal in this trend, as the product's price increased by approximately 1%. This uptick can be attributed to global price increments. Market sources reported that the demand for the product remained relatively stable throughout this period, and the improved financial conditions in key global economies played a vital role in supporting the overall price uptrend within the country. Furthermore, the conclusion of the monsoon season in several Asian economies resulted in a notable decrease in inventory levels. During this timeframe, production activities remained temporarily halted, affecting the overall supply chain. In addition to these factors, demand for the product began to show signs of improvement, particularly from the construction and glass industries. This increased demand provided further support to the global price uptrend. As the quarter progressed, it became evident that the market was responsive to various external factors, making it a period of fluctuation and adaptation for the Sodium Lignosulphonate industry in the Middle East, particularly in Saudi Arabia.
For the Quarter Ending June 2023
North America
Sodium Lignosulphonate prices kept on rising in the US market throughout this quarter. As per the data, a significant rise of around 7.6% was observed in the US market during Q2 2023 on the back of a rise in international demand amidst moderate to low offtakes from the domestic market. Further, according to sources, the price of Sodium Lignosulphonate has been consistently stable for a very long time, with only minor fluctuations occurring on a weekly basis. Due to steady offtakes in the midst of high inventory levels, the price fundamentals for the product in the US remained stable overall in the middle of the quarter. Additionally, Russian product supplies have been sluggish globally, and traders anticipate cargoes to arrive in one to two months. In the meantime, Chinese material is meeting demand. The US domestic construction sector showcased a surprising rebound during May 2023. However, as per the recent analysis by FRED, construction activities in the USA remained slow during June, which has been affecting the pricing dynamics of the product. Thus, projecting a decline in the coming quarter.
APAC
In Asia, Sodium Lignosulphonate prices showcased mixed sentiments throughout the second quarter of 2023. The prices sustained an overall uptrend in India but rose only in May for China. The data shows A significant rise in the price of Sodium Lignosulfonate has been observed during this week due to low availability in the country amidst depressed demand after the impending threat of lockdown. International demand remained ample enough to support the overall uptrend in the country, as there was a lack of Russian material in the market; this gap was filled by Chinese traders. According to NBS data, the value-added industry growth rate declined from 5.6% (April 2023) to 3.5% (May 2023). On the other side, in India, expensive imports from the international market, including the USA and China, affected the pricing dynamics of the product in the country. From the demand perspective, the quarter started with an overall firmness in demand, which was a seasonal phenomenon (arrival of summer). However, traders were getting cargoes at either lower or stable prices, but in lieu of low domestic availability, traders didn’t let the trend trace other ways.
Middle East Asia
The Saudi Arabian market fluctuated marginally during the mid of the quarter on the back of expensive imports from overseas. As per the data, Sodium Lignosulphonate prices rose marginally during the month of May 2023 owing to the rise in prices across the global market. The data shows, during the month of May, Sodium Lignosulphonate prices rose globally, thus affecting the price trend in the Saudi Arabian market. Furthermore, during April 2023, on the occasion of the Ramadan festival, procurement, as well as production activities, were slowed down, which eventually led to a decline in inventories level. Therefore, during the festive season (after Eid) market started to rebound, and traders started their procurement activities in the country, which led to a rise in the prices of Sodium Lignosulphonate in the domestic market of Saudi Arabia. Additionally, the price rebound had not much relation with the domestic demand, and traders were pinning their hopes on the arrival of a seasonal wave of consumption. Sodium Lignosulphonate prices were assessed at around USD 675/Mt in the Saudi Arabian market on a CFR basis.
Europe
European Sodium Lignosulphonate prices remained rangebound throughout the quarter due to expectedly low consumption from the domestic downstream industries amidst ample supplies of the product in the region. As per the market sources, demand fundamentals for the product remained low throughout the quarter, as key European economies, including Germany and UK, heard to sbe on the edge of recession. However, some experts believed that Germany was already in a recession and likely to be in it till the end of this year. Nevertheless, no official release was present to prove this fact. On the other side, demand for the product remained low in the European market due to consistently low economic activities exacerbated by violence erupting in France and the ripple effect of the US economic slowdown. Thus, all these factors not only affected the price trend of construction-related raw materials like Sodium Lignosulphonate but other commodities too. However, Regional freight charges remained high during this quarter, too, affecting prices of several commodities, including construction raw materials.
For the Quarter Ending March 2023
North America
Sodium Lignosulphonate prices saw a downward trend throughout Q1 2023 under the influence of low demand and muted queries from international markets. Instead of an abundance of supplies in the regional market, the prices were not seen inclining in the North American region. Market sources revealed that traders were getting cheaper cargoes due to pessimism hovering around the globe related to the recession, especially in USA and Europe. Furthermore, demand remained lackluster from the construction sector, and traders had already procured enough cargo. Sodium lignosulphonate prices were assessed at USD 624/MT during March, i.e., end of the quarter.
APAC
Sodium Lignosulphonate prices saw a downward trend in the first quarter of 2023. As per the data, Sodium lignosulphonate prices fell effectively and hovered around USD 217/MT during March on a FOB basis. Ample product availability in the country has affected the pricing dynamics of several commodities, including sodium lignosulphonate, in the regional market during Q1. Demand for the product remained moderate, and a marginal improvement in demand was overserved in the later part of the quarter In comparison to the previous months. However, enough availability didn’t let the price of the product show any positive price variation during the quarter in the region.
Middle East
The sodium Lignosulphonate prices in the Middle Eastern region were assessed at 652/MT on a CFR basis during Q1 2023. During the slowed economic activities and wavering offtakes, the Sodium Lignosulphonate demand in the construction sector remained muted. Ample supplies remained a major factor behind this price movement during this order. Furthermore, the price of feedstock Sodium Hydroxide also remained low to moderate and hovered in a stable range. A smooth flow of cargo was observed in the European market during Q1. Furthermore, market participants maintained a negative pricing momentum for the first quarter due to weak demand fundamentals and muted spot activity globally amidst competitive market circumstances and high stock levels.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, Sodium Lignosulphonate prices in North America remained to fluctuate. According to the data, the price of Sodium Lignosulphonate initially dropped in October and November as a result of a largely domestic product supply and weak domestic downstream sector demand. According to market sources, the product demand from the construction industry downstream remained low, which allowed dealers to cut their prices because they had been rising in the previous quarter. Prices for Sodium Lignosulphonate were estimated to be USD 741/MT in the US market.
APAC
In the fourth quarter, the APAC region's Sodium Lignosulphonate price trend showed a continuous fall. On a FOB Qingdao basis, the Chinese market prices were said to be circling around USD 200/MT. In the Chinese market, where there was little activity, the price of Sodium Lignosulphonate fell as a result of the negative market sentiment. The pricing dynamic changed in accordance with the downstream demand as the region's demand for the building industry remained moderate. The Indian market, on the other hand, remained stable to soft over this timeframe since the product's fundamentals of demand remained low.
Europe
Prices for Sodium Lignosulphonate in Europe remained low in Q4 due to a global slowdown in the downstream construction sector. Market activity for Sodium Lignosulphonate was seen to be minimal due to the persistently weak demand. However, because of high input costs and consumer inflationary pressure, prices remained constant for the firm throughout the fourth quarter. The dynamics of supply and demand remained severely depressed in the meantime, implying a drop in prices for the entire quarter. As a result, despite a modest demand from the regional market, the price of Sodium lignosulphonate remained stable.
For the Quarter Ending September 2022
North America
The price of Sodium Lignosulphonate (SLS) in the North American region saw an increment in the third quarter of 2022, supported by rising demand and a plentiful supply in the domestic market. During the initial quarters of quarter 3, the downstream paper industry's demand remained unchanged. However, the region was concerned due to logistical issues and rising feedstock costs, which pushed prices up. During Q3, the oil additive segment's consumption volumes and those from the feed industry both stayed constant.
Asia
In the third quarter of 2022, the price of Sodium Lignosulfonate stayed on a firm note in the Asian market due to steady demand from the downstream construction industry. The primary force behind the price volatility was the decline in demand from local merchants in the Indian market. The cost of raw materials had declined, further supporting the reduction in the product price. Order from the construction sector remained stable to firm in the international markets, directly impacting the prices of Sodium Lignosulphonate in India. During the latter half of the quarter, the supply situation turned bearish as manufacturers reported lower amounts of Russian imports. Hence inventory level was limited.
Europe
Due to plentiful product supply in the nation and low to stable domestic demand, a slight price decline in Sodium Lignosulphonate was seen during this quarter. According to market sources, the recent actions taken by various governments to reduce inflation and the effects of the global economic recession have caused international dealers or procurers to be cautious about future acquisitions. In Europe, there was little demand for Sodium Lignosulphonate from sectors like paper and building. Construction activities in the area were slowed down; in some places, output levels were shallow due to the weather. However, for European producers, rising feedstock costs remain a significant worry, followed by increasing freight and production expenses.
For the Quarter Ending June 2022
USA
Sodium Lignosulphonate market dynamics sustained an uptrend during Q2 2022 in the USA, owing to high inflationary pressure amidst stable demand from the country's construction sector. A steep rise in the price of several commodities was observed during the past few months under the steep increase in upstream natural gas costs. It observed that natural gas prices witnessed a steep price escalation during the quarter's final month, which compelled manufacturers to raise their product prices to sustain profitability. However, despite high inflationary pressure, Sodium Lignosulphonate prices remained stable during June 2022 due to ample inventories amidst mild demand from the domestic market. As per the ChemAnalyst data, the Sodium Lignosulphonate price hovered around USD 846/MT during May 2022.
Asia
Sodium Lignosulphonate prices kept on tracing an uptrend throughout the second quarter of 2022 in the Asian market owing to global market disturbances amidst stable offtakes from the domestic market. According to the ChemAnalyst market sources, Indian traders revealed that, under the influence of feeble offtakes during the first half of the quarter, they were trying to keep the prices stable to sustain offtakes from the niche buyers. Further, under the influence of intense heat, the Indian construction sector has slowed marginally, leading to low product consumption across the domestic market from a particular segment. Meanwhile, the Chinese market remained disturbed due to the sudden rise in pandemic cases in the country, which shut down the country's economic activities and reduced offtakes from the downstream construction and paper industry. ChemAnalyst data shows Sodium Lignosulphonate price hovered around USD 903/MT in India during May 2022.
Middle East
Stable demand from the regional market and rising inflationary pressure on global key players have compelled them to raise their product prices. Sodium Lignosulphonate price kept rising this quarter, owing to an acute increment in product cost. The middle eastern region has been facing inadequate availability of shipping containers for a long time, which has put a further price burden on traders, diminishing their profit margins. However, it was observed that trade activities tumbled effectively since China's lockdown started, injecting optimism about ease in global freight charges. Consequently, In Germany, the Sodium Lignosulphonate price was assessed at around USD 775/MT in May 2022.
For the Quarter Ending March 2022
North America
North American market primarily influenced by rising inflationary pressure on manufacturers due to high raw material cost coupled with anticipated disturbance in trade activities all across the region. Sudden escalation in crude oil value, as Russia announced special military operations on Ukraine, prices of several commodities skyrocketed under the pressure of soaring upstream cost. Traders were getting anxious regarding steep rise in prices of several commodities, due to looming threat of supply disruption in the global market, as operation may get halted due to ongoing war near Black Sea. Thus, post witnessing steep rise in prices, Sodium Lignosulphonate prices assessed around USD 757/MT during February. However, further price escalation is expected in next quarter under the influence of rising tension between two countries.
Asia Pacific
Consistent price revisions have been observed in Sodium Lignosulphonate in Asian market since January 2022, primarily driven by inflationary pressure amid stable to firm offtakes from the domestic market. Construction activities in China bounced back during the January-February month, owing to ease in coal related hurdles and dual energy policy restrictions in the country. Despite of spring festival in the country, builders maintained overall inventory level to sustain uninterrupted construction activities in the country. Sodium Lignosulphonate price heard hovered around USD 260/MT on Spot purchases in China during February. In the meantime, taking pressure from rising input cost in the global market on the back of hike in prices of imported commodities, Sodium Lignosulphonate prices rose effectively throughout the quarter in India. Expensive imports coupled with rising freight cost remained prime factors behind these significant hikes in prices across Indian market.
Middle East
Huge burden of Inflation has been on construction sector since the Russia Ukraine conflict escalated. Middle eastern Sodium Lignosulphonate players witnessed frequent price revisions under the influence of changing demand supply pattern coupled with oscillating global crude oil value. As per the ChemAnalyst data, consistent hike in price of Sodium lignosulphonate was observed during first two month of this quarter which later declined by the mid of March. This fall was driven by changed market dynamics in China, led to a fall in global crude oil value coupled with widened demand supply gap. Sodium Lignosulphonate price was assessed around USD 763/MT CFR basis during February.
For the Quarter Ending December 2021
North America
Despite firm offtakes from the domestic market Sodium Lignosulphonate price kept it downtrend continue throughout the second half of the quarter in USA. North American construction sector has been robust since a long time, that supported the consistent offtakes from the domestic market, which supported the price uptrend during first half of Q4. However, export activities from USA to other countries especially Asian remained dull, which resisted any price uptrend. Furthermore, Sodium Lignosulphonate availability remained ample to US market, which also supported this sharp decline in domestic market. Thus, Sodium Lignosulphonate price stood around USD 771/MT during December.
Asia
Construction activities in China resumed effectively during December again after a prolong period of speculations, which restarted the demand for construction chemical in the country. However, before the actual demand arise, prices kept on rising due to unavailability of material in the country. Further, during November, construction sector declined due to their own flaws, which has now started showing optimism. Thus, these resumption in construction activities has opportune traders to raise their offers, which stood around USD 275/MT FOB Qingdao during December. Meanwhile in India, post resumption in industrial activities, in effect of decline in new pandemic cases in India, Sodium Lignosulfonate price escalated unexpectedly till the end of October. In addition, spiralling freights cost, and crippling container availability also exacerbated the overall price scenario in the country. However, monsoon season led to a steep decline in demand during November and December, and prices slipped radically in domestic market.
Europe
European construction industry revamped during the month of November, as supply contains seems to be temporarily vanished. During November, demand fundamentals for most of the construction related chemicals improved significantly including Sodium Lignosulphonate. However, spiralling freight price and rising input cost eventually led to steep rise in prices of Sodium Lignosulphonate during this quarter. In addition, exorbitant hike in energy prices remained a major concern for regional market players, which was compelling them to pass on this price burden on consumers. Thus, Sodium Lignosulphonate price rose effectively throughout the quarter across European market.
For the Quarter Ending September 2021
North America
In the North American region, the prices of Sodium Lignosulphonate (SLS) witnessed a marginal increment in the 3rd quarter of 2021 backed by the increased demand and abundant supply in the domestic market. Production of SLS has been strong since the second quarter. In terms of demand, it has been stagnant from the downstream paper industry during the first half of quarter 3. However, logistical problems and soaring feedstock costs caused concern across the region, thereby pressuring prices to go northwards. Consumption volumes from the feed industry remained stable along with the oil additive segment during Q3. In the first week of August price of SLS was assessed at USD 765/MT FOB Texas.
Asia
The Asian market observed a significant rise in the prices of Sodium Lignosulphonate during the third quarter of 2021 on the back of the consistent demand from the downstream construction sector. In India, the pricing trend traced an upward trajectory in the last week of August, supported by modest to firm demand from the domestic market, while facing domestic scarcity. Post resumption in industrial activities, in the effect of a decline in new pandemic cases in India, Sodium Lignosulfonate prices escalated unexpectedly in India and shot up from USD 908/MT to USD 1072/MT in Q3 2021. In addition, skyrocketing freights costs, and crippling container availability also exacerbated the overall price scenario in the country.
Middle East Africa
In Middle East Africa, the pricing trend of SLS continued to rally upwards during the 3rd quarter under a strong pull from the demand side and surging raw material cost. As per the market experts, the concrete admixture market remained challenging in Q3 despite global demand recovery post-COVID due to continued supply constraints in key raw materials and high freight costs. Translating gains in the Sodium Lignosulphonate pricing, several downstream concrete admixture producers increased their prices for various construction chemical product lines. In September, CFR Jeddah offers have been settled at USD 700 per MT due to underlined factors.
For the quarter Ending June 2021
North America
Sodium Lignosulphonate (SLS) market showcased mixed sentiment in this quarter across North America region, bolstered by improved offtakes from the downstream manufacturers. Initially, during the month of April and May, prices kept rising due to supply shortage of upstream in USA. However, prices dragged normalcy in June with improvement in production activities from the US Gulf coast. In addition, in the meantime, manufacturers revealed that their margins declined due to market competitiveness and soaring feedstock cost. Thus, prices of SLS were accessed at USD 805/MT during the last week of June in USA.
Asia
Sodium Lignosulphonate market remained firm throughout the quarter across the APAC region during Q2 2021. In China, strong economic rebound pushed up the demand from the domestic construction sector. Meanwhile in India, prices declined during the month of May, under the pandemic mayhem in the country, that reduced the overall consumption of SLS. In May, sudden implementation of lockdown restrictions dented the overall demand from the construction chemical intermediate segment, which later improved during the month of June. Thus, prices of SLS revolved around USD 808.4/MT during June 2021 in India.
Europe
European market also had firm sentiments for Sodium Lignosulphonate during this quarter, backed by stable offtakes from the domestic construction sector. The demand from the downstream segments improved week over week, as the economic activities rebounded from the dull sentiments caused by pandemic. However, rising feedstock prices, followed by soaring freight and production cost also remained a major concerned for European manufacturers in the meantime.
For the Quarter Ending March 2021
North America
North America had a firm demand for Sodium Lignosulphonate, dominated by paper and food segment of the regional market. Despite plants turnarounds and shortage of the feedstock chemicals amidst winter chills, supply remained consistent and satisfying all the need. However, prices showed a significant improvement during this quarter as the competitive market conditions led it to rise from USD 760/MT (January 2021) to USD 780/MT (March 2021) across Texas, USA. The raw material rates, extended small gains in the quarter but limited availability remained the key price driver.”
Asia
Prices of Sodium Lignosulphate (SLS) received firm support from the global uptrend as the product availability from the overseas stood restrained by a combination of factors during Jan-Mar period. Lack of Chinese shipments due to Lunar year holidays was heard tightening the powdered SLS supply throughout Asia which had already been on a bullish note due to soaring freight and currency fluctuations. Demand, majorly driven by the recovering construction sector led the prices to rise and reach USD 305/MT in the Chinese Market during March. Similarly, in Indian markets prices rose by more than 7% within the quarter and hovered around USD 569/MT.
Europe
The European market registered low demand for Sodium Lignosulphonate market from segments like paper and construction. Rapid surge in COVID cases and strict lockdown restrictions slowed down the construction activity of the region, even some places faced low production activities due to weather conditions. Traders indicated towards tightness as major European plant went offline, forcing buyers to plan for alternatives amidst widening demand-supply gap.
For the Quarter Ending December 2020
North America
A large number of small-scale industries are involved in the manufacturing of sodium lignosulphonate like Flambeau. Due to ease in lockdown, the paper and pulp industry regained stability, and the production of by-products Lignosulphonates consequently increased. Following the ease in availability of raw material, the production of Sodium Lignosulphonate also strengthened. The import of Sodium Lignosulphonate from European countries also increased, and the prices were observed to have increased in Q4 2020 in comparison to Q3 2020.
Asia
Demand for Sodium Lignosulphonate in the Asian market in Q4 2020 increased in comparison to the Q2 and Q3 2020 because of an appreciable increase in demand for concrete mixture and cement segments. As the construction industry regained stability in Q4 2020, the growth of Sodium Lignosulphonate increased in Asian countries like China, India, South Korea, Taiwan, etc. China being one of the leading traders of Sodium Lignosulphonate also experienced growth in its export demand across the region. Even though the petroleum industry was heard under pressure, owing to the oil and drilling activities, prices of Sodium Lignosulphonate have remained range bound.
Europe
Stuck by a new strain of Coronavirus, Europe imposed a partial lockdown in November in several part of the region due to which the paper and pulp industry remained closed. Owing to strict trading and travelling restriction and non-availability of raw material, the supply of the product was observed to be negligible. As an alternative, Calcium Lignosulphonate is being used in the end-use industries due to the easier availability of the raw material Calcium Hydroxide in comparison to sodium hydroxide.
