For the Quarter Ending September 2024
North America
In the third quarter of this year, the sodium nitrite market in North America exhibited a mixed trend, with prices experiencing fluctuations throughout the period. In the early weeks of the quarter, sodium nitrite prices remained relatively stable. The prices were influenced by easing tensions in the Middle East, which contributed to a steady pricing environment for sodium nitrite.
However, low demand in downstream sectors, particularly within the food preservation and agrochemical industries, also helped maintain price stability during this period. However, in the last two months, sodium nitrite prices saw significant volatility, driven by supply challenges, weak industrial output, and cautious consumer behavior. Disruptions, such as plant shutdowns and logistical issues, further exacerbated the situation.
Rising geopolitical tensions and tighter supply, exerted increased cost pressure, pushing sodium nitrite prices upward. Domestic inventories of sodium nitrite remained low, prompting higher purchases to meet immediate demand. Additionally, the recent US economic activity appears robust, suggesting that the recession fears that emerged over the summer may have been exaggerated.
APAC
In Q3 2024, the Sodium Nitrite market in the APAC region witnessed a significant downturn, with prices experiencing a notable decline. This decrease can be attributed to various key factors influencing market dynamics. We observed a substantial -25% decrease in prices compared to the same quarter last year, indicating a significant shift in pricing trends. Moreover, the quarter-on-quarter decline of -7% further underscores the challenging environment for Sodium Nitrite pricing. Notably, within Q3 2024, there was a pronounced -10% decrease in prices between the first and second halves of the quarter, reflecting ongoing downward pressure on market values. China, in particular, saw the most significant fluctuations in Sodium Nitrite prices during this period. The market experienced notable price changes, with a consistent downward trend throughout the quarter. Seasonal variations, coupled with weakening demand and excess inventory levels, contributed to the overall negative sentiment in pricing. The latest quarter-ending price for Sodium Nitrite in China stood at USD 363/MT - EXW Qingdao, reflecting the prevailing downward pricing environment in the region.
Europe
In the third quarter of 2024, the Sodium Nitrite market in Europe noted mixed trends. In Q3 2024, the end-use FMCG sector experienced a challenging environment as consumers increasingly prioritized cost savings and sought more affordable options in the European region. Consumers continued to trade down and were mainly focusing on need-on-basis procurement. As a result, the revenue growth was also impacted as noted by most of the FMCG players. Consumers of Sodium Nitrite were mostly focusing on volume recovery as a primary driver for revenue, moving away from reliance on price increases. During this quarter, the freight charges also declined by considerable margins, which also led to imports of low-priced goods from the Asian markets. Overall, the underperformance in the major economies in Europe, particularly Germany had a major impact on the Sodium Nitrite market. Though towards the end of the quarter, few recoveries in the trade and economic activities of European nations were noted, however, it still could not provide adequate support to the Sodium Nitrite prices.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Sodium Nitrite market in North America saw an upward trend. Prices rose in the initial weeks due to increased consumer demand, particularly from the industrial, food, and beverages sectors as summer approached, where the demand for food preservation is the highest. The quarter was characterized by rising manufacturing costs, driven by higher prices for upstream raw materials and sustained demand from downstream industries.
In the mid-Q2 of 2024, Sodium Nitrite prices continued their upward trajectory due to increased demand and supply constraints. While the food and, beverages industries showed firm demand, the impact of upstream raw materials was also significant. Business confidence improved slightly during the quarter, but demand remained subdued in sectors other than water treatment. The weaker-than-expected Q1 GDP was largely attributed to softer net exports and inventory investment, which offset stronger domestic economic activity.
In the final month of the quarter, Sodium Nitrite prices increased further due to ongoing supply stress and robust domestic demand. Upstream prices continued to influence the market, while higher freight charges, driven by geopolitical tensions and supply concerns, also added pressure. Despite ongoing supply chain challenges, the U.S. economy showed positive signs with projections of high inbound cargo volumes, fostering optimism among industry participants about the future.
APAC
In Q2 2024, the pricing environment for Sodium Nitrite in the APAC region has been distinctly characterized by a downward trajectory. This quarter has seen significant price contractions, influenced by a confluence of factors impacting market dynamics. High inventory levels coupled with slower consumer inquiries have exerted substantial downward pressure on prices. The robust industrial activity, indicated by manufacturing PMI data, has not translated into heightened demand, as ample material availability has led to an oversupplied market. Concurrently, a sluggish procurement rate and substantial built-up inventories have stunted new supply needs, reinforcing a bearish market sentiment. Focusing specifically on China, which has experienced the most notable price adjustments, the market has been particularly volatile. Overall trends highlight a seasonally driven downturn, where warmer months typically see increased demand for food preservation chemicals; however, this year, the substantial existing inventories have mitigated the typical seasonal uptick. Compared to the same quarter last year, prices have plummeted by 30%, reflecting a sharp market contraction. From the previous quarter in 2024, there was an 8% decline, underscoring a continued negative trend. The first half of the quarter saw a 4% price drop compared to the second half, underscoring persistent downward pressure. Conclusively, the latest quarter-ending price for Sodium Nitrite in China settled at USD 423/MT EXW Qingdao, reflecting an overarching negative pricing environment throughout Q2 2024.
Europe
The European Sodium Nitrite market continued to face challenges in the second quarter of 2024. Throughout the quarter, prices remained on a downward trend, reflecting sustained subdued demand from downstream sectors such as food and beverages. The manufacturing industry in the Eurozone struggled, with new orders experiencing a notable decrease coupled with deterioration in the manufacturing PMI of major economies in Europe. In the last two months of Q2, prices continued to decline as low demand persisted, and consumer inquiries remained weak. The supply chain operations noted improved vendor performance due to limited market transactions and market sentiments remained negative. By the end, prices further dropped due to sustained subdued demand and decreased upstream raw material prices. Additionally, global trade faced challenges due to supply chain constraints caused by the Israel-Hamas conflict and drought in the Panama Canal. These factors led to delays and increased freight charges. Moreover, high interest rates increased the cost of financing significant purchases, adding to the market's challenges. Overall, the Sodium Nitrite market in Europe encountered continued downward pressure in Q1 2024 amid persistent demand weaknesses and external trade disruptions.
For the Quarter Ending March 2024
North America
The Sodium Nitrite market in North America experienced a mixed pricing trend in the first quarter of 2024. Initially, market sentiments were positive in January, driven by increased production rates and heightened demand from the downstream food and beverages industry. However, in the following two months of Q1, Sodium Nitrite prices plummeted due to a slowdown in demand in the same industry and subdued inquiries from both domestic and international market participants.
Uncertainties surrounding the economy eased further during this period while the industrial performance improved as suggested by the manufacturing PMI data. Additionally, consumer confidence noted improvement this quarter. However, global trade faced challenges due to supply chain constraints caused by the Israel-Hamas conflict and drought in the Panama Canal.
These factors led to delays and increased freight charges, impacting the Sodium Nitrite market. Moreover, high interest rates further exacerbated the situation by increasing the cost of financing significant purchases. As a result, the Sodium Nitrite market in North America encountered notable fluctuations in pricing dynamics during the first quarter of 2024.
APAC
In Q1 2024, the APAC region experienced a downward trend in Sodium Nitrite prices. Various factors influenced market prices during this quarter. The demand for Sodium Nitrite remained low in the downstream industries, particularly in the food and beverages sector, resulting in decreased procurement and sluggish market activity. Additionally, the market saw ample material availability, which further contributed to the downward pressure on prices. China, in particular, witnessed significant price changes during this period.
The market dynamics in China were weak, with low demand and surplus inventories leading to a decline in prices. The Lunar New Year holidays also affected market performance, as many factories operated at reduced capacity or remained closed, affecting production levels and demand. Comparing Q1 2024 to the same quarter last year, there was a substantial decrease of 29% in Sodium Nitrite prices.
Furthermore, the quarter-on-quarter comparison revealed a decrease of 17%. Within the quarter itself, prices declined by 6% from the first half to the second half. Overall, the pricing environment for Sodium Nitrite in the APAC region during Q1 2024 can be described as negative, with prices experiencing a consistent decrease throughout the quarter. As the quarter came to a close, the latest price for Sodium Nitrite in China was recorded at USD 460/MT - EXW Qingdao.
Europe
The European Sodium Nitrite market continued to face challenges in the first quarter of 2024. Throughout the quarter, prices remained on a downward trend, reflecting sustained subdued demand from downstream sectors such as food and beverages. The manufacturing industry in the Eurozone struggled, with new orders experiencing a notable decrease coupled with deterioration in the manufacturing PMI of major economies in Europe.
In the last two months of Q1, prices continued to decline as low demand persisted, and consumer inquiries remained weak. The supply chain operations noted improved vendor performance due to limited market transactions and market sentiments remained negative. By the end, prices further dropped due to sustained subdued demand and decreased upstream raw material prices. Additionally, global trade faced challenges due to supply chain constraints caused by the Israel-Hamas conflict and drought in the Panama Canal. These factors led to delays and increased freight charges. Moreover, high interest rates increased the cost of financing significant purchases, adding to the market's challenges. Overall, the Sodium Nitrite market in Europe encountered continued downward pressure in Q1 2024 amid persistent demand weaknesses and external trade disruptions.
For the Quarter Ending December 2023
North America
In Q4 2023, the Sodium Nitrite market in the USA showcased mixed sentiments due to various factors. Weak demand from downstream sectors, including food and beverages and other end-use industries, played a pivotal role in shaping market sentiments. Moreover, the influx of low-priced imports exerted downward pressure on prices, given the sluggish nature of consumer inquiries.
Nevertheless, the domestic market boasted ample material availability, contributing to constrained procurement and a subsequent price decrease of the product. In the United States, where the most notable price fluctuations occurred in the region, the market exhibited a bearish scenario. Weak demand persisted, accompanied by unfavorable market sentiments due to economic factors. The deteriorating business confidence led to minimal inquiries from downstream industries.
Furthermore, the practice of destocking was widespread during this month, influenced by consumer hesitancy to retain excess inventories. Simultaneously, the traditional year-end holidays typically resulted in decreased industrial activity. Consequently, manufacturing firms opted to either slow down their operations or temporarily suspend them, exacerbating the decline in demand.
APAC
The fourth quarter of 2023 (Q4) for Sodium Nitrite witnessed a stable market situation in the APAC region. The demand from the downstream food and beverages industry for Sodium Nitrite as a food preservative remained moderate, with no significant inflow of new orders from the overseas consumer market. However, competition from imports, primarily from China, affected domestic businesses, despite sluggish demand in the eurozone and the United States. The availability of Sodium Nitrite was sufficient to fulfill the domestic demand, and steady production rates were maintained by the domestic manufacturers. In China, the market sentiments were bearish, with a moderate to high supply of Sodium Nitrite and a drop in prices due to sellers adjusting their selling prices. The trend and correlation price percentage of Sodium Nitrite in China for Q4 2023 was -19%, with a percentage change of -11% between the first and second half of the quarter. The percentage change in price from last year's same quarter was -23%. The latest price of Sodium Nitrite - EXW Qingdao in China for Q4 2023 was USD 503/MT. Overall, the primary reasons that impacted the market for Sodium Nitrite throughout the quarter were the unstable market situation, moderate demand, and competition from imports.
Europe
In the final quarter of 2023, the European Sodium Nitrite market witnessed a bearish trend, with prices consistently moving downward throughout this period. In October, the decline in prices was attributed to subdued demand from downstream sectors, including food and beverages and other end-use industries. Manufacturing production in the Eurozone contracted significantly, marked by a notable decrease in new orders. Despite a slight improvement in the manufacturing PMI, it indicated a prolonged downturn in the sector. Moving into November, prices continued their descent, driven by persistent low demand from downstream industries. The consumer market observed ample material availability in the region. Despite a slight improvement in the PMI, manufacturing activities remained on a downward trajectory. The supply chain continued to ease, and vendor performance improved amidst ongoing subdued consumer demand and limited market transactions. December witnessed a further decline in prices due to sustained subdued demand. Downstream industries maintained weak consumer inquiries, resulting in negative market sentiments. The prices of upstream raw materials dropped, and factory gate deflation persisted. Year-end holidays and destocking efforts contributed to reduced industrial activity, prompting manufacturing companies to either slow down their operations or temporarily suspend them.
For the Quarter Ending September 2023
North America
In Q3 2023, the Sodium Nitrite market in the USA showcased mixed sentiments due to various factors. In the initial days, the prices declined due to a poor demand outlook and a reduction in offered quotations by the major exporting nations. Additionally, the manufacturing data suggests a further drop in manufacturing activities amid poor growth of new orders and export sales. August saw a further plunge in the prices of the product as higher interest rates and ongoing summer vacations in most of the European nations weigher upon the demand outlook of the product. However, in September there was a slight improvement in the business outlook and new orders came in, though at a slower pace. Additionally, the demand conditions in the downstream food, beverages, and other end-use industries saw further development as inquiries from the European market also arose, post the vacation month. However, in this time period, the overall market transactions were lagging and purchases were mainly on a demand basis.
APAC
The Sodium Nitrite market in Asia demonstrated bearish sentiments in the third quarter of this year and the prices overall declined in China due to a range of factors. In the first month, the prices surged due to increased demand from the downstream food and beverages industry whereas, amid slow manufacturing activities in the region, a supply-demand imbalance was registered. In the next two months, the market sentiments dwindled and the prices declined week-on-week, amid built-up inventories of the product in the domestic market and the consumer market demonstrated reluctance for newer purchases. Additionally, the manufacturing PMI also remained under the 50-point benchmark, indicating towards drop in industrial activity amid slow growth in new orders and export sales. September’s Sodium Nitrite market observed slight improvement as both supply and demand prospects saw development. In September, China’s official manufacturing PMI crossed the 50-point threshold pointing towards development in industrial activity amid government efforts to stimulate the economy. On the demand side, the inquiries also improved amid the stocking practices done ahead of the mid-Autumn holidays.
Europe
In the third quarter of 2023, the Sodium Nitrite market in Europe demonstrated mixed sentiments and the prices fluctuated throughout this period. In the initial weeks of Q3, the inflationary pressure impacted the business activities in the region and the consumer demand remained weak amid uncertain economic conditions as high interest rates took a toll on the business conditions. August marked a slight improvement in market sentiments, as there was a modest price increase, attributed to a boost in demand from the downstream industries. However, the supply side was lacking amid low operating conditions among the manufacturing firms. Come September, Sodium Nitrite prices in the domestic market increased slightly. This was due to steady demand and rising production costs driven, in part, by fluctuating natural gas prices in Europe. The manufacturing activities were slow in the region as post the vacation season, the rebound in the market activities was poor due to which, the inventories of the product were low in the domestic market.
For the Quarter Ending June 2023
North America
Prices of Sodium Nitrite showed a floating trend in the second quarter of 2023. In the months of April and May, the prices in the North American market moderated compared to the ending price of the month of March 2023 because inventory levels went up because of cheap imports from Asian countries like China and India. The demand from the downstream industries improved slightly, but consumer sentiments remained suppressed overall due to tight monetary policy. In the month of June, we observed an increase in the price of Sodium Nitrite in the American markets because of the increased demands from the downstream food processing and packaging industries as summer raged in the US and bullish consumer sentiments. Inquiries reveal that inventory levels were at the lower end, and the investors’ sentiment remained ‘low’ because of high-interest rates, reduced investments, and expectations of further rate cuts. The supply chain remained resilient. Import performance from Asian countries shows negative growth in the month of June 2023.
APAC
Prices of Sodium Nitrite showed a floating trend in the second quarter of 2023. In the month of April, in the Chinese market, the prices remained stable, as observed in the previous month of March 2023, with slight variations weekly. The demand outlook remained sustainable in the region as improvement in the consumer industries from the downstream food and beverages industry was registered. In terms of production, the domestic manufacturers increased the output rates to meet the rising consumer demand in the region. From the end of April till the end of the quarter, a bearish trend is observed. A 14% drop in price is observed from April to June. Inquiries with the market participants reveal a high inventory of available stocks, higher production in the previous months, and reduced demands from overseas destinations were the main factors affecting the drop. NBS Manufacturing PMI registered a fall in the month of May 2023, triggering bearish sentiments in both investors and consumers. In India, a bearish trend was observed throughout the second quarter. Inquiries from market participants revealed that overseas demand from North America and Europe has declined significantly. High-interest rates and inflationary pressures in North America have led to a decline in the demand for downstream food and preservative industries. Prices of Sodium Nitrite FOB Qingdao were settled at USD 605/MT in the month of June 2023.
Europe
Prices of Sodium nitrite observed a bullish trend in the second quarter of 2023. In the German market, the prices showed a bullish trend after a floating Q1. The inventory levels remained adequate and supplemented by the imports from the Asian markets of India and the US. The price decline between the previous quarter and the month of April is attributed to colder temperatures in the regions of Southeastern Europe and Germany which negatively affected the demand for sodium nitrite. Researchers estimate that a 30 percent fall in the price was observed. Inventory levels were sufficient to cater to the needs, and the second quarter saw an increasing trend where the prices rose by 22.22 percent in the month of June. Demand for Sodium Nitrite from the downstream food industries increased as summer rages Europe with record temperatures. Inquiries reveal that inventory levels are lower than expected. Based on previous trends, the demands may ease in Q3 of 2023.
For the Quarter Ending March 2023
North America
In the North American market, the Sodium Nitrite market observed a mixed pricing trend in the first quarter of 2023. The market sentiments for the product were in positive territory in the first month of Q1 2023 amid increased production rates and a surge in demand from the downstream food and beverages industry. In the two months of Q1, the market prices of Sodium Nitrite plummeted owing to weaker demand in the downstream food and beverages industry and suppressed inquiries from domestic as well as international market participants. Amid looming inflationary pressure, uncertainties regarding the economy and the collapse of two banks in the US resulted in a weaker consumer demand outlook.
APAC
The market prices of Sodium Nitrite showcased mixed market sentiments in the Chinese domestic market. In January, the market prices plummeted amid a weaker demand outlook from the downstream food and beverages industry due to Lunar New Year festivities in the region. In February, the prices increased since the conclusion of the Lunar New Year holidays as the market participants replenished the material available in the domestic market. Also, the demand outlook improved in this period. In March, the prices dropped owing to weaker demand from the downstream food and beverages industry as adequate inventories were present in the region, enough to cater to the end-use consumer demand. Thus, the offered quotes for Sodium Nitrite FOB Qingdao settled at USD 706 per tonne at the end of Q1 2023.
Europe
The overall pricing of Sodium Nitrite in the European market demonstrated mixed market sentiments in the first quarter of 2023. The product's prices increased in the first month of Q1 due to the lack of market competitiveness in the region as the Asian market activities remained at lower levels in this period. In February, market prices began to fall as inflationary pressures and uncertainties regarding economic conditions affected consumer sentiments, resulting in limited purchases. Overall prices fell further in March due to reduced procurement from the downstream food and beverages industry. Also, the manufacturing PMI fell amid weaker demand and a drop in input costs in the European region this month, resulting in bearish market sentiments for Sodium Nitrite in the region.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Sodium Nitrite market in the North American region has observed considerable pressure amidst the swindling market dynamics. The region observed a restricted export outlook at the start of the quarter, especially for the European nations. At the same time, the Mexican and Canadian players have actively participated in arbitrage practices. However, the last month of the quarter presented several new challenges to the US Sodium Nitrite market as the operating rates dropped considerably amidst the blizzard storm in the region, pressurizing the value and supply chain at the same duration. At the same time, the power outages by the quarter end have impacted the operations at the downstream industries. As a ripple effect, the FOB Houston discussions for Sodium Nitrite were settled at USD 597 per tonne in November 2022.
Asia Pacific
Overall, the Sodium Nitrite market in the Asia Pacific region showcased mixed sentiments based on sub-regions and seasonal duration for the supply-demand outlook in the domestic market. The far east Asian markets, especially China, have observed considerable challenges amidst the dull demand outlook coupled with challenges that occurred amidst adjusting the operating rates at the manufacturing facilities followed by the market slowdown. At the same time, the Southeast Asian market observed a supply glut in the early period due to the festive season. In contradiction, the second half observed a surge in the availability of the material in the domestic market provoked by the destocking practices followed by price competitiveness in the region. As a ripple effect, the FOB Qingdao discussions for Sodium Nitrite were settled at USD 653 per tonne during the quarter ending December 2022.
Europe
The Sodium Nitrite market in Europe has remained consolidated during the fourth quarter of 2022. The overall market outlook has improved considerably over the past few months after the market activities resumed. Although several new challenges were enforced in the domestic European markets due to the high inflation, the interest rates were high. Further, coupled with the high energy prices across Europe, as a ripple effect, the production cost has surged tremendously, forcing the producers to adjust the operating rates to sustain adequate netbacks. In response, the FD Antwerp discussions for Sodium Nitrite were assessed at USD 817 per tonne in October 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the Sodium Nitrite market in the North American region remained balanced. There is no delay or disruption amidst the hurricane season. In contrast, the offtakes for Sodium Nitrite remained consistent to avoid further disruptions as the possibility of a hurricane is still hovering over the market dynamics. Therefore, the DDP USGC discussions for Sodium Nitrite were assessed at USD 897 per tonne during September 2022.
Asia Pacific
Overall the Spodium Nitrite market in the Asian domestic market witnessed mixed sentiments during the third quarter of 2022. The market dynamics in the Southeast Asian markets have remained stagnant to bearish amidst the off-season due to the monsoon. At the same time, the Northeast Asian markets remained unclear and witnessed supply constraints after the Chinese market faced power rationing followed by the energy reforms. As a ripple effect, the Ex-Bhiwandi discussions for Sodium Nitrite were assessed at INR 72810 per tonne during September 2022.
Europe
The Sodium Nitrite market for Sodium Nitrite was remained dull in the third quarter of 2022. This market trend is majorly attributed to the silent market practices due to the prolonged holidays. In response, the demand for Sodium Nitrite remained dull in the domestic market. In addition, the demand slightly rebounded in September as market activities resumed. As a ripple effect, the DDP Antwerp discussions for Sodium Nitrite were assessed at USD 911 per tonne in September.
For the Quarter Ending June 2022
North America
The demand for Sodium Nitrite surged, backed by the high inflation rate in the US market due to the War, which caused an upward trend in the prices of Sodium Nitrite throughout Q2-2022. Sodium Nitrite inquiries had been consistently increasing from the food preservatives and pharmaceutical industries. As a ripple effect, prices of Sodium Nitrite saw a rise with active demand from the downstream sectors. In the USA market, Force Majeure at primary Chlor Alkali chemical plants such as Olin and Westlake in the US system crippled the availability of raw materials such as Sodium Hydroxide, which conclusively impacted the price movement of Sodium Nitrite in the North American region. Sodium Nitrite prices showed an overall surge of 3% in this quarter in the USA in the month of June.
APAC
Sodium Nitrite prices showcased an upward trend throughout Q2 2022 due to the firm demand from the downstream food preservatives and pharmaceuticals amidst heat waves in Asian countries and fear of COVID 19 pandemic. Moreover, a significant rise in the energy prices caused upward pressure on the input costs for the products and enterprises indulged in passing the cost burden to the consumers to sustain maximum profit margins. Demand enhanced as the quarter concluded, backed by the high inflation rate due to War and supply disruptions from China amidst lockdown restrictions. Sodium nitrite prices maintained a rising trajectory in the second quarter of 2022.
Europe
Sodium Nitrite supplies remained tight throughout Q2 of 2022 due to a consistent increase in transportation costs amidst high inflation rates. The conflict between Russia and Ukraine resulted in production cuts and high energy values in the European region. In addition, high raw material Sodium hydroxide costs impacted the price movement of Sodium Nitrite in the regional market. Demand from food preservative and pharmaceuticals industries increased after commercial and business activities resumption, resulting in consistency in Sodium Nitrite's offtakes since the first quarter. The price of Sodium Nitrite showed an inclination of nearly 2% in Germany in June.
For Quarter Ending March 2022
North America
The demand for Sodium Nitrite surged throughout diverse sectors, which caused an upward thrust in the prices of Sodium Nitrite in Q1-2022. Sodium Nitrite inquiries have remained steady from the food preservatives and pharmaceutical industries in Asia. As a ripple effect, prices of Sodium Nitrite witnessed a rise with active demand from the downstream sectors. In the US market, supplies were balanced due to higher inventory levels to fulfill the growing inquiries. Prices of Sodium Nitrite were assessed at USD 1070/MT CFR-US Gulf in the USA in the month of March.
Asia Pacific
Sodium Nitrite prices showcased strong sentiments throughout Q1 2022 due to the firm demand from the downstream food preservatives and pharmaceuticals amidst resurgence of Covid 19 in several Asian countries. However, significant demand drop was observed in February, but demand accelerated as the quarter concluded, backed by the strong demand in the downstream industries. Moreover, Sodium Nitrite prices showed a surge due to the increased inflation in the Chinese market amid production cuts as a result of strict covid restrictions. Prices of Sodium Nitrite were assessed at USD 630/MT EXW Qingdao in China.
Europe
Sodium Nitrite supplies remained tight throughout Q1 of 2022 due to consistent rise in freight charges amidst container shortage. The conflict between Russia and Ukraine resulted in production cuts and extended energy crisis in the European region. Demand from rubber and dye industry surged after the resumption of commercial and business activities, which led to the increase in the offtakes of Sodium Nitrite throughout the quarter. Prices of Sodium Nitrite were assessed at USD 1030/MT CFR Hamburg in Germany in the month of March.
For the Quarter Ending December 2021
North America
Sodium Nitrite market outlook in North America remained firm backed by the consistent demand from the domestic as well as overseas market. As Sodium Nitrite demand remains nearly same across the year, limited availability of its raw material led to the continuous surge in its prices. Production rates in USA remained optimum in lieu of the favorable demand from the food and preservative sector in the holiday season. Sodium Nitrite prices after following an upward curve for the three consecutive months reaching USD 980 per MT in December.
Asia Pacific
In the Asia Pacific region, market dynamics of Sodium Nitrite remained mixed during the fourth quarter of 2021. Disturbed production activities in China largely benefited Indian key players of specialty chemicals. A market respondent revealed that they witnessed great demand for Sodium Nitrite in the Indian market, as imports were either halted or getting delayed. Thus, Sodium Nitrite cost increased rapidly in October on the back of high demand and larger demand supply gap. However, by late-December prices largely stabilized as the operating rates in China reached normalcy. Sodium Nitrite prices in December thus eased and settled at USD 980 per MT Ex-Mumbai.
Europe
In Europe, Sodium Nitrite market remained firm during the fourth quarter of 2021 owing to the reduced plant operating rates due to the extended energy crises. Although the demand for the product in the regional market remained firm from the food and preservative sector. However, as the freight rates gradually eased in Q4 they restricted any steep hike in the prices of the product. By the end of the quarter, prices of the product also eased following the normalcy in the availability of cargoes.
For the Quarter Ending September 2021
North America
In Q3 2021, Sodium Nitrite market outlook appeared strong backed by the improved demand from the domestic as well as overseas market. Moreover, spike in the prices of raw materials also contributed to the hike in the pricing trend of Sodium Nitrite. Furthermore, production levels remained low during the mid of the quarter because of the severe climatic condition in the USA which directly impacted the regional as well as global market dynamics in this quarter.
Asia Pacific
In the Asia Pacific region, market dynamics of Sodium Nitrite varied from country to country during the third quarter of 2021. In India, an overall surge in the prices of Sodium Nitrite was observed following the spike in the feedstock values as well as the constraint availability. In India, Sodium Nitrite is primarily imported by China, thus, a proliferative trajectory in prices in the product was seen. Factors such as the lower production rates in China due to power deficit conditions as well as delayed imports due to the congestion on several ports of China contributed to the pricing trend of Sodium Nitrite in India. Moreover, firm demand from the food and beverage industry and high freight charges also supported the hike in the prices of Sodium Nitrite in this quarter. However, in September, a slight dip in the values of Sodium Nitrite was seen backed by adequate supplies after the ease in the trade dynamics. Ex-Mumbai, monthly average prices of Sodium Nitrite were accessed at USD 794.20 per MT in September showcasing a significant hike since July.
Europe
In Europe, Sodium Nitrite market remained firm during the third quarter of 2021 backed by the sturdy demand from the downstream sectors including textiles and food preservatives. Moreover, tightened supply of the raw materials and the hike in their prices further led to the increment in the values of Sodium Nitrite in Q3. Besides, an improvement in the offtakes from the downstream manufacturers was also witnessed in this timeframe after the revival in the market activities. In addition, soaring freight costs further sent ripples to the values of Sodium Nitrite in Europe.
For the Quarter Ending June 2021
North America
In the second quarter of 2021, demand of the Sodium Nitrite surged across various sectors. The restoration of the industrial infrastructure in the US Gulf coast improved the supply chain of various commodities. Sodium Nitrite enquiries were consistent from the food additives and pharmaceutical industries and as a ripple effect, the prices of got the significant support and discussion at FOB Texas were assessed at USD 625 per tonne in April. In the US market, supply was balanced as the operating levels remain sufficient to meet the rising enquiries, along with a strong restocking sentiment ahead of the upcoming hurricane season in US.
Asia Pacific
Despite the second COVID wave in India the supply of the Sodium Nitrite remained firm in the Indian market during the second quarter of 2021. Consumption remained healthy with consistent intakes from the downstream manufacturing industries. Demand remained stable from the downstream food preservatives and pharmaceutical industry. However, significant demand drop was observed in May, but demand accelerated as the quarter concluded. In China, the pricing trend observed a multi-fold hike due to the rising inflation rate in the Chinese domestic market. Ex-Work Qingdao discussions were assessed at USD 725 per tonne in June.
Europe
Sodium Nitrite supply-demand fundamentals were balanced during the second quarter of 2021. This was epitomized by the stable pricing for Sodium Nitrite throughout the quarter. Production rates improved with increased feedstock availability as the quarter progressed. Demand numbers remained healthy as the consumption volumes from downstream food preservative and pharmaceuticals industries stayed consistent with marginal growth. Furthermore, demand growth has been due to the effective mass vaccination programmes which boosted the economic growth and therefore realized in improved intake numbers.
For the Quarter Ending March 2021
North America
Sodium Nitrite supplies in the North American region were tight during the first quarter of 2021, due to restricted availability of the key upstream raw material as the rare climate calamity disrupted the production activity across the region in Q1. Enquiries improved amidst improved demand from the dye manufacturer and ample consumption from the food additive and pharmaceutical industries. Critical shortage of the feedstock due to several shutdowns supported the price uptrend with CFR New York prices for Sodium Nitrite in March is USD 740 per tonne.
Asia-Pacific
Strong demand during the first quarter of 2021 was buoyed by constant offtakes from the downstream dyes, and food preservatives industries despite slowdown in market activities as the second wave of COVID hit several nations towards the end of the quarter. Global supply disruptions served as tailwind for regional manufacturers amid consistent demand for Sodium Nitrite from pharma industries. Sodium Nitrite imports in India on account of the unprecedented supply chain disruptions caused due to macroeconomic factors and surging freight charges. Market offers were firm throughout the quarter with price of Sodium Nitrite assessed around USD 761 per tonne for March deliveries.
Europe
The European region encountered a steep rise in the prices of Sodium Nitrite during the first quarter of 2021, amid curtailed supplies due to the reduced imports from the USA. Shutdown of a key raw material facility in the Germany declared prompted shortages in the second half of the quarter followed by the transportation lag in the Antwerp-Rotterdam–Amsterdam route which further diminished the product inventories. Demand however surged as the offtakes were improved from the downstream segments during Q1.
For the Quarter Ending December 2020
North America
The supplies improved during the Q4 with consistent improvement in demand from the paints and coating sector. Besides, continuous increment in the prices of feedstock, particularly Ammonia, led to the uptrend in the prices of Sodium Nitrite in US, during the second half of the final quarter of 2020. Furthermore, the demand surged with persistent rise in consumption from the pharmaceutical and food & beverages industry followed by the recovery in export potential.
Asia
During the fourth quarter of 2020, in the initial days’ supply remained sufficient but by the end of quarter the supplies were getting tighter, due to an upward market price trend. The demand from downstream sectors like food and beverages surged as the major economies in the region started to recover after restrictions were eased. Prices of upstream products and feedstocks were temporarily stable, which brought certain positive support to the price of Sodium Nitrite in the region. Due to the healthy demand against tighter supply, CFR China Sodium Nitrite prices were assessed at USD 700 per tonne levels in mid-December, whereas in India prices averaged at USD 697/tonne throughput the quarter.
Europe
Sodium Nitrite supplies remained tight throughout Q4 of 2020 due to consistent increase in freight charges amidst container shortage. The prolonged supply shortage was further exacerbated by the scheduled turnaround at the BASF plant in Antwerp Belgium. Demand from the rubber and dye industries improved after the resumption of industrial and commercial activities, which led to the improvisation on the consumption of Sodium Nitrate, throughout the quarter.
