For the Quarter Ending June 2024
North America
The second quarter of 2024 has been characterized by a significant upward trend in Sodium Percarbonate prices in the North American market. The faced supply constraints due to moderate to low manufacturing rates and intermittent labor shortages, exacerbating the disparity between supply and demand. During this period, were production cuts prompted by the hurricane season in the North American region. The impact of tropical storms led to widespread flooding and significant disruptions in transportation infrastructure, which severely hampered logistics and supply chains.
Additionally, the prolonged power outages caused by Hurricane Beryl further disrupted manufacturing operations across the region, exacerbating the supply constraints. Together, these elements created a challenging environment for the Sodium Percarbonate market in the USA, driving prices higher and highlighting the sensitivity of the market to both raw material costs and environmental disruptions.
Additionally, the chemical sector's fluctuating trade volumes, affected by global trade restrictions and refining activities, have added to the upward pressure on prices. The interplay of these factors prompted towards widened disparity between demand and supply thus supporting the price hike throughout the Q2.
APAC
In Q2 2024, the market for Sodium Percarbonate in the APAC region experienced significant price increases, driven by a confluence of market dynamics. This quarter has seen heightened demand from international markets, exacerbated by a surge in freight charges and overall inflationary pressures in raw material costs. Export orders have risen robustly, supported by a global restocking cycle that has strained supply chains and freight capacities, leading to significant rate increases. Additionally, the chemical sector's fluctuating trade volumes, affected by global trade restrictions and refining activities, have added to the upward pressure on prices. Focusing on China, which has witnessed the most pronounced price changes, the trend has been decidedly bullish. The Chinese manufacturing PMI, although slightly lower than its peak, indicates an ongoing expansion in factory activity, bolstering demand for chemical products like Sodium Percarbonate. The overall trend for the quarter has been marked by robust export growth, moderate domestic demand, and the influence of seasonal restocking cycles, particularly from European markets. Notably, there has been a marked correlation between rising freight costs and the price of Sodium Percarbonate, pushing prices up by 3% between the first and second halves of the quarter. Despite a recorded 1% decline from the previous quarter, the market sentiment remains positive, reflecting a sustained upward trajectory. The quarter concluded with a price of USD 800/MT for Sodium Percarbonate Coated FOB Ningbo in China, indicating a strong pricing environment bolstered by international demand and logistical constraints, without any significant disruptions or plant shutdowns reported during this period.
Europe
The second quarter of 2024 has been characterized by a significant upward trend in Sodium Percarbonate prices in the European market. This increase was largely driven by supply constraints due to moderate to low manufacturing rates and intermittent labor shortages, which exacerbated the disparity between supply and demand. Persistent trade uncertainties and supply chain disruptions also played a critical role. Ongoing conflicts in the Red Sea and port congestions have significantly delayed the export of various commodities, including Sodium Percarbonate, to Europe. These disruptions were compounded by a recent strike at Hamburg's port, following earlier warning strikes. These labor actions severely affected vessel operations, leading to congestion at container terminals and further complicating the timely delivery of goods to European markets. Together, these factors have created a challenging environment for the Sodium Percarbonate market in Europe, highlighting the market's sensitivity to both raw material costs and environmental disruptions. Additionally, fluctuating trade volumes in the chemical sector, influenced by global trade restrictions and refining activities, have added upward pressure on prices. The interplay of these factors has widened the disparity between demand and supply, thereby supporting the price hike throughout the second quarter.
