For the Quarter Ending September 2024
North America
In Q3 2024, the Sodium Sulphate market in North America experienced a increase in First half of Q3 2024 while prices declined in the second half, heavily influenced by several key factors. The Initial rise was due to adequate demand to meet downstream industries.
Excess inventories in the market led to traders offering stocks at lower prices, creating a bearish sentiment. The unexpected rise in U.S. retail sales in August hinted at a solid economy, which pushed against expectations for an interest rate cut by the Federal Reserve, impacting market dynamics. Additionally, disruptions like Hurricane Beryl earlier in the quarter contributed to weak consumer spending data.
Specifically in the USA, the market saw significant price changes with a 7% decrease from the previous quarter. The second half of the quarter recorded a notable -5% price difference compared to the first half. These fluctuations reflect a challenging pricing environment, with prices ending the quarter at USD 216/MT of Sodium Sulphate DEL Louisiana. Overall, the pricing trends in the USA exhibited a negative correlation, influenced by supply-demand dynamics, economic indicators, and external disruptions.
APAC
In Q3 2024, the Sodium Sulphate market in the APAC region experienced a significant increase in the first half and then decline in the second half of Q3 2024 prices. Various factors influenced this downturn, including disruptions like plant shutdowns in Thailand and China due to typhoons. These disruptions caused short-term impacts on supply, leading to decreased pricing sentiments. Additionally, weak demand from downstream industries and a decrease in methanol prices contributed to the overall negative pricing trend. Japan, in particular, saw the maximum price changes in the region, with prices declining by 8% from the same quarter last year. The quarter recorded a 6% decrease in prices from the first to the second half, marking a substantial shift. The quarter-ending price in Japan stood at USD 112/MT of Sodium Sulphate FOB Tokyo, reflecting the prevalent decreasing sentiment in the market. These price changes indicate a challenging period for the Sodium Sulphate market in the APAC region, characterized by a negative pricing environment and unstable market conditions.
Europe
The Sodium Sulphate market in Europe during Q3 2024 witnessed an increase in first month of Quarter 3 amid rise in business activity and starting of new quarter and thereon decline in prices throughout Q3, with Germany experiencing the most significant changes. The market was influenced by factors such as high inventories, weak demand in downstream industries, and lower import prices from Asian markets. The European economy showed signs of slowing down, impacting retail sales and inflation expectations. In Germany, the detergent industry faced challenges due to economic uncertainties and rising production costs. Additionally, the ongoing Red Sea crisis disrupted global supply chains, leading to higher import values and supply chain complexities. Despite stable domestic production, the market grappled with insufficient stocks meeting downstream demand, further impacting prices. Plant shutdowns and disruptions added to the market volatility, contributing to the overall negative sentiment. Germany saw a stability in prices from the previous quarter, reflecting the subdued growth trend in the market. The quarter-ending price for Sodium Sulphate FD Hamburg was recorded at USD 255/MT, highlighting the continued downward trajectory in pricing for the region.
For the Quarter Ending June 2024
North America
In the beginning of Q2 2024, the prices of Sodium Sulphate showed a decreasing market trend. This development was due to lower downstream inquiries and traders selling stocks at lower prices to increase market transactions. "In Q2 2024, the Sodium Sulphate market in North America exhibited a notable uptrend in prices, driven by several key factors.
The quarter commenced with a robust supply-demand equilibrium, supported by optimal production rates in domestic plants. However, persistent inflationary pressures and elevated natural gas prices incrementally raised production expenses. Consequently, manufacturers augmented their selling prices to maintain margins. Additionally, increased restocking activities anticipated for the upcoming holiday season further propelled Sodium Sulphate prices. Focusing on the USA, the region experienced the most significant price fluctuations.
The overall trend was marked by upward momentum, primarily influenced by seasonal demands from the textile and paper industries. Moreover, economic recovery and improved consumer confidence fuelled higher inquiries, fostering a bullish market sentiment. Despite a consistent pricing environment with a 0% change from the previous quarter, the second half of Q2 saw a 2% price increase compared to the first half. This surge signifies heightened procurement activities and a positive market outlook. Notably, the quarter-ending price for Sodium Sulphate stood at USD 214/MT DEL Louisiana, reflecting a stable yet progressive pricing environment. Despite no major plant shutdowns being reported, the market remained dynamic, characterized by a consistent upward trajectory. Overall, the pricing environment for Sodium Sulphate in Q2 2024 was decidedly positive, underpinned by strong industrial demand, strategic restocking, and inflationary production costs."
APAC
In the first month of Q2 2024, the prices of Sodium Sulphate showed bearish market trends. This development was due to adequate inventories in the market to meet downstream demand. Additionally, traders lowered the prices of inventories to increase market transactions. Furthermore, the market was set on destocking mode, leading to lower prices of inventories. In the consecutive months of Q2 2024, the Sodium Sulphate market in the APAC region experienced a notable upswing, driven by heightened demand from downstream sectors such as detergents, textiles, and cleaning products, alongside increased feedstock prices. Market dynamics were further influenced by supply chain constraints and robust industrial activities, all contributing to elevating prices. Energy costs, particularly influenced by fluctuating coal prices, played a critical role in shaping production expenses, thereby pushing Sodium Sulphate prices upward. Within this broader context, Japan's market demonstrated the most significant price changes. The quarter was characterized by a strong increasing sentiment, largely due to steady demand from consumer goods and manufacturing industries. Seasonality also played a role, with restocking activities peaking, especially during the lead-up to the holiday season. The correlation between price changes and seasonal demand spikes was apparent, with the market witnessing a marked improvement in consumer confidence and economic activities. A comparison of price trends within the quarter revealed a 2% increase between the first and second halves, reflecting sustained demand and limited supply disruptions. The quarter ended with Sodium Sulphate priced at USD 110/MT FOB Tokyo, signalling a positive pricing environment. Despite the previous quarter's 3% decline, the overall trend in Q2 2024 was bullish, driven by multiple factors, including steady industrial activities, rising feedstock costs, and seasonal demand peaks. The absence of major plant shutdowns further underscored a stable supply chain, contributing to the consistent price rise observed in the region.
Europe
In the first half of Q2 2024, the prices of Sodium Sulphate showed declining market trends. This development was driven by lower prices of imports from the international market, especially from China. Furthermore, the demand from the downstream industry, such as cleaning and detergents, was on the lower side.
In the second half of Q2 2024, the Sodium Sulphate market in Europe experienced a notable upward pricing trend driven by several key factors. The quarter was marked by increased restocking activities ahead of the European holiday season, which heightened demand and consequently exerted upward pressure on prices. Furthermore, higher production costs, notably due to rising natural gas prices, contributed to the overall increase. The European Central Bank's decision to lower interest rates stimulated economic activity, further bolstering demand from downstream industries such as textiles, laundry, and detergents. Supply chain disruptions in the Red Sea exacerbated the situation, leading to tightened vessel capacity and elevated freight rates. These logistical challenges, coupled with increased war risk insurance premiums, added to the cost pressures.
Germany observed significant price changes for Sodium Sulphate, showcasing the most pronounced trends within the region. The country's robust demand from the laundry and home care sectors, underpinned by strong organic sales growth reported by major firms like Henkel, amplified the price escalation. The correlation between rising demand and constrained supply due to geopolitical tensions in key shipping routes further amplified pricing dynamics.
Seasonal restocking activities in the first half of the quarter led to a sharp increase in prices, whereas the second half witnessed a slight moderation. Despite these fluctuations, the overall sentiment remained positive, reflecting an environment where demand substantially outstripped supply. The quarter concluded with Sodium Sulphate prices in Germany at USD 256/MT FD Hamburg, indicating a stable yet progressively increasing market. This pricing trajectory signifies a robust quarter for Sodium Sulphate in Germany, driven by both local and international market forces.
For the Quarter Ending March 2024
North America
the pricing environment for Sodium Sulphate in North America during Q1 2024 has been bearish, with prices declining due to oversupply. Overall, the market has experienced a bearish trend, with prices declining compared to the previous quarter. This can be attributed to an oversupply of inventories in the market, leading to reduced prices for remaining supplies. However, there are expectations of a potential reversal in this downward trend.
In the USA, Sodium Sulphate prices have seen a moderate decrease in January 2024. This decline is mainly due to the oversupply of inventories and the increase in feedstock Sodium Chloride prices, suggesting a potential deceleration in demand within the downstream Sodium Sulphate sector. Despite this, there has been consistent demand from downstream sectors such as the pulp and paper industry, which has helped sustain prices.
Looking ahead, there is a growing anticipation of price increases in Sodium Sulphate. Factors such as the rise in feedstock costs, sustained demand for premium paper, and the likelihood of market restocking are expected to drive these price increases. Additionally, the projected surge in demand for old corrugated containers (OCC), new double-lined kraft corrugated cuttings (DLK), and mixed paper in the US is anticipated to maintain upward pricing pressure. The latest quarter-ending price for Sodium Sulphate in the USA is USD 204/MT DEL Louisiana.
APAC
In the APAC region, the pricing environment for Sodium Sulphate in Q1 2024 has been influenced by various factors. Overall, prices have experienced a decline due to factors such as increased inventory levels and reduced demand from downstream sectors, particularly the pulp and paper industry. This has resulted in an overall low demand situation. Additionally, the prices of imports from key markets like China have been lower, leading to discounted rates for Sodium Sulphate in the domestic market.
Looking specifically at Japan, the pricing trends have followed a similar pattern. Prices have witnessed a decrease due to elevated inventory levels and subdued demand from the pulp and paper industry. However, there is an expectation of an uptick in prices in the coming months, influenced by rising prices of the raw material, Sodium Hydroxide. Despite the overall low demand, there is sustained demand from the bleaching paper industry and detergent sector.
In terms of seasonality and correlation, the pricing trends in Q1 2024 have been influenced by factors such as rising energy prices, leading to higher production costs. The downstream bleaching industry has maintained strong demand, contributing to continuous inquiries from downstream sectors. Additionally, market expectations include a potential surge in prices due to restocking activities.
Overall, the pricing environment for Sodium Sulphate in Q1 2024 can be characterized as bearish, with moderate supply and low to moderate demand. However, there are indications of potential price increases in the future, driven by various factors such as rising feedstock costs and market restocking activities. The latest quarter-ending price for Sodium Sulphate FOB Tokyo in Japan is USD 104/MT.
Europe
The Sodium Sulphate market in Europe during Q1 2024 has experienced a mixed pricing environment, with significant factors influencing market prices. Overall, prices have shown a slight increase compared to the same quarter last year. However, there has been a decrease in prices from the previous quarter in 2024. The decline in Natural Gas prices has resulted in reduced production costs, leading to lower Sodium Sulphate prices. Additionally, the presence of elevated inventories in the market has contributed to discounted rates for Sodium Sulphate. Low import prices from China have also influenced market prices. In Germany, the pricing trends have been more pronounced. Prices have shown a slight increase from the previous quarter, indicating a positive pricing environment. However, there has been a decrease in prices compared to the same quarter last year. This suggests a more stable pricing environment in Germany. It is important to note that the market is poised for a resurgence in restocking activities, which is expected to drive increased demand from the downstream industry. Demand from the detergent, pulp, and paper industry is projected to remain robust. In conclusion, the Sodium Sulphate pricing environment in Europe during Q1 2024 has been relatively stable with some fluctuations. While prices have shown a slight increase from the previous quarter in Germany, there has been a decrease compared to the same quarter last year. The market is expected to see increased demand and potential price increases in the coming months.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Sodium Sulphate market in North America experienced mixed dynamics. While demand from downstream industries like detergents and pulp and paper remained relatively weak, there were indications of expansion in the manufacturing sector, as reflected by the Purchasing Managers' Index (PMI) standing at 48.20. The market also saw a downward trend in prices due to weak cost support from the feedstock Sodium Chloride, high inventory levels, and the ongoing destocking activity.
Additionally, the high interest rate in the region dampened the purchasing power of downstream consumers. No major plant shutdowns were reported during this quarter. The decline can be attributed to the surplus of inventories in the market and the continued destocking activity. The prices of natural gas, a key component in production, remained rangebound, leading to lower production costs.
However, the weak demand from downstream industries and the high interest rate limited the market's growth potential. In summary, the Sodium Sulphate market in North America faced challenges in the fourth quarter of 2023, with weak demand from downstream industries and high inventory levels. Prices declined due to the surplus of inventories and destocking activity. The United States, being the largest market in the region, experienced a decrease in prices, influenced by the same factors. The latest price for Sodium Sulphate in the USA at the end of the quarter was USD 198/MT DEL Louisiana.
APAC
The Sodium Sulphate market in the APAC region during the fourth quarter of 2023 experienced a decline in prices, primarily driven by lower demand from the downstream industry. This decrease in demand was seen in sectors such as detergent, pulp and paper, and cleaning, leading to a bearish market situation. The moderate supply of Sodium Sulphate was supported by stable imports from international markets, although inventories remained high. The Japanese market, in particular, saw a decline in prices due to weakened support from the feedstock Sodium Chloride and lower demand from the downstream industry. The PMI value for the Japanese market indicated a contraction in the manufacturing sector. No plant shutdowns were reported during this quarter. The pricing trend for Sodium Sulphate in Japan showed a decrease of 7% from the previous quarter, with a comparison of -4% between the first and second half of the quarter. The price of Sodium Sulphate in Japan at the end of the quarter was USD 114/MT FOB Tokyo.
Europe
The Sodium Sulphate market in Europe during the fourth quarter of 2023 witnessed several significant factors that influenced prices. Firstly, the prices of Sodium Sulphate declined due to lower production costs resulting from decreasing prices of natural gas. Additionally, the market had high inventories, leading to discounted prices. The demand from the international market remained stable, further contributing to lower prices. In terms of supply, the plants operated at a moderate capacity, saturating the market with inventories. However, no plant shutdown was reported during this quarter. Among European countries, Germany experienced notable price changes. The prices of Sodium Sulphate in Germany increased due to growing demand from the downstream industry, particularly the cleaning sector. The Purchasing Managers' Index (PMI) for the German market indicated a contraction in the manufacturing sector but showed a slight improvement compared to the previous month. The inflation rate in Germany decreased, contributing to positive market sentiments. The price trend for Sodium Sulphate in Germany during the fourth quarter of 2023 showed a bullish market situation. The supply remained moderate, while demand from downstream industries was expected to be moderate as well. The forecasted pricing trend for Sodium Sulphate in Germany indicated a slight decrease in prices for the next quarter. In conclusion, the Sodium Sulphate market in Europe experienced a decline in prices due to lower production costs and high inventories. Germany saw an increase in prices driven by demand from the cleaning industry. The market trend in Germany was bullish, with moderate supply and demand. The quarter ending price for Sodium Sulphate in Germany was USD 266/MT FD Hamburg.
For the Quarter Ending September 2023
North America
The sodium sulphate market increased in the North American region throughout Q3. This development was due to driven by heightened demand and low inventory levels in the market, leading to inventories being offered at premium rates. However, despite this uptick, demand from downstream industries, including the detergent sector, remained relatively weak. In the United States, indicators such as consumer sentiment and industrial output suggested contraction, particularly in manufacturing, where the PMI fell below the 50-point threshold in September. Despite these challenges, the supply of Sodium Sulphate is anticipated to stay resilient, aiming to establish a stable market dynamic. Furthermore, the PMI value was stated below 50, indicating contractions of the manufacturing sector throughout Quarter three. Furthermore, natural gas prices have shown increased trends as of this quarter. In the upcoming months, the prices of Sodium Sulphate are likely to increase due to the increase in prices of Feedstock Sodium Chloride. Additionally, from the production front, the prices of Natural gas are expected to rise.
Asia-Pacific
Throughout the third quarter, Sodium Sulphate prices exhibited a bearish trend primarily influenced by the reduction in sulfuric acid prices, which adversely impacted the product's overall cost structure. The decrease in demand from both downstream and end-users was evident, reflecting the slow pace of economic recovery. Market participants observed a bearish trend in both export and domestic consumption volumes, driven by deflationary concerns in China. Despite these challenges, a positive development emerged with increased industrial activity, as reflected in the expansion of the Purchasing Managers' Index (PMI) to 50.60 in September. However, the market grappled with the persistent challenge of high unemployment. On the supply side, resilience was noted, although export prospects to European and North American markets dwindled due to inflation and monetary tightening, resulting in reduced consumption. Looking ahead, there is an anticipation of price increases in the upcoming period, driven by the backdrop of increasing prices of feedstock Sodium Chloride and rising international demand due to the arrival of festival season.
Europe
Throughout the third quarter, Sodium Sulphate prices exhibited an upward trend, driven by a growing demand from the downstream industries like the detergent industry. In the German market, despite the Purchasing Managers' Index (PMI) indicating a contraction in the manufacturing sector, there was a slight increase from 39.1 to 39.6. Additionally, the inflation rate, which stood at 4.5% in September, showed a decrease from the previous 6.1%, contributing to positive market sentiments. Notably, there were no significant disruptions observed in the German market's supply chain, which led to adequate inventory levels in the market. However, there were challenges on the production cost front as the cost of natural gas used in LNG production increased during this period. There is an expectation of increasing Sodium Sulphate prices in the German market due to the rising prices of imports. The demand from the downstream industry is anticipated to remain robust, and the production cost is expected to be influenced by the continued higher prices of natural gas.
For the Quarter Ending June 2023
North America
In the North American continent, the prices of Sodium Sulphate witnessed a marginal price decline throughout the entire second quarter of 2023, noting an overall decline of USD -2/MT (-1%) on the back of weak demand mentioned from the downstream detergents, paper pulp, and pharmaceuticals industry where it is used as a laxative agent. Furthermore, the cost pressure from the feedstock sodium chloride is also expected to remain weak, and the limited change in the demand pressure from the downstream industries was noted. Additionally, in the presence of stable domestic production, inventories remained reasonable as reported by the market participants in May. The consumer procurement activities and the consumption rates from the chemical industry had been on the stable side. Further, this deflation in prices of Sodium Sulphate is supported by weak freight charges and tripping feedstock costs. Further, the upstream Sulfuric acid market prices also persistently declined in Q2 along with the falling offers of crude oil, which indirectly impacted the prices of the feedstock Sulfuric acid and thereby impacted the Sodium sulfate prices.
APAC
In the Asia pacific region, the prices of Sodium sulphate inclined in the first half of the second quarter from April to mid-May which later declined from mid-May to June in the presence of stable to poor demand pressure received from the downstream detergents, paper pulp, and pharmaceuticals industry where it is used as a laxative. In Chinese market specifically in the months of April and May the prices of Sodium sulphate have inclined in the presence of optimistic demand from the downstream industries. Additionally, the reduced crude oil availability as OPEC+ announced production cuts till the end of the year, starting from the first week of May, further surged the production cost of Sodium Sulphate, thereby increasing its market value. Furthermore, the prices of Sodium sulphate witnessed a decline of 6 % in the last month i.e., June of Q2, owing to the weak cost pressure from the feedstock Sodium hydroxide. Furthermore, minimal change in the demand pattern from the downstream detergents, paper pulp, and pharmaceuticals industries facilitated the price decline of Sodium sulphate.
Europe
The prices of Sodium sulphate witnessed an overall bearish trend in the second quarter of 2023, noting a marginal price decline of USD -2/MT (-1%) from the first week of Q2 up until the last week of Q2 on the back of weak demand mentioned from the downstream detergents, paper pulp, and pharmaceuticals industry where it is used as a laxative. The weak production cost of the feedstock sodium chloride is due to the weak demand pressure registered from the downstream industries. Additionally, the inventories remained reasonable in the presence of stable domestic production, as reported by the market participants in the second month of Q2. Although during April, the downstream paper and detergent industries were doing good in the market, the prices of Sodium sulphate still decreased in the German market, backed by an excess of inventories. A similar trend followed till the last week of May, which was further supported by decreasing freight charges. However, a growth of +2.4 % was witnessed in the month of June as an increase in consumption of Sodium sulphate in the paper and detergent industries was observed positively, owing to the seasonal trend.
For the Quarter Ending March 2023
North America
Sodium Sulphate showcased optimistic market momentum in the North American market during the first quarter of 2023. The industrial production and sales of detergent and paper industries improved during the quarter, which boosted demand for Sodium Sulphate in the market, and a rapid spike in pricing trend was seen. Additionally, the level of inventories was lesser than what was required to cater to the available demand along with a lagging supply rate, which caused the instability in the demand-supply ratio, hence surging the value of Sodium Sulphate. Consequently, the assessed price of Sodium Sulphate in the USA was USD 180/MT FOB USGC during March, which was 23.3% higher than in December.
APAC
During the first quarter of 2023, the market for Sodium Sulphate in the Asia-Pacific region had positive market momentum. The quarter saw an improvement in the industrial production and sales of the paper and detergent industries, which increased market demand for Sodium Sulphate and resulted in a sharp rise in price. Additionally, the level of stockpiles was lower than what was necessary to meet the demand, and the supply rate lagged, which led to an unstable demand-supply ratio and an increase in the price of Sodium Sulphate. As a result, the evaluated price for Sodium Sulphate in Japan in March was USD 118/MT FOB Tokyo, which was 5.4% more expensive than in December.
Europe
In the first quarter of 2023, the European Sodium Sulphate market had strong market momentum. The quarter saw improvements in the paper and detergent industries' industrial production and sales, which raised market demand for Sodium Sulphate and caused a substantial increase in price. Furthermore, the stocks were not at the appropriate level to fulfill demand, and the supply rate was slow, which caused an unstable demand-supply ratio and an increase in the price of Sodium Sulphate. Because of this, the assessed price for Sodium Sulphate in Germany in March was USD 265/MT FD Hamburg, 10.4% more expensive than in December.
For the Quarter Ending December 2022
North America
During Q4 2022, the prices of Sodium Sulphate rose in the North American market, with prices ranging at USD 125/ton FOB USGC in November 2022 as per ChemAnalyst Research Team Data in the USA. In mid-November, strengthened global downstream demand and a stronger dollar pushed goods exports to a seven-month high, suggesting trade could have more substantial economic growth. The feedstock Crude Oil prices decreased, affecting Sulphur's market sentiments and cost pressure. The delineation of the Sodium Sulphate market was observed to be elevated with the rise in prices, and orders of the product were high enough to keep a balance with the downstream consumption of the product.
Asia
The prices of Sodium Sulphate increased in the Asian market during Q4 of 2022, with costs ranging from USD 96/ton FOB Shandong in October in China. Enterprise inventory levels continued to remain low, the supply of Sodium Sulphate was tight, and enterprises mainly completed orders from existing customers. According to market observers, despite high inflation, the downstream demand has spiraled up with strengthening consumer spending. In spite of the decrease in freight costs, the region supplied more Sodium Sulphate to importing countries. The geopolitical tensions and pandemic in China have induced supply chain disruptions and caused a shortage of Sodium Sulphate in the domestic as well as international market.
Europe
The demand from the downstream fertilizers market plummeted due to weakness in utilizing the product in the region, and procuring Sodium Sulphate in the European market needed to be more vital to raise Sodium Sulphate inventories with the traders and suppliers. The buying trend from the end-users has remained weakened in the market, decreasing the prices of Sodium Sulphate. The more inventory and sufficient supply of Sodium Sulphate push the price down further. Low-cost pressure from the weakening crude oil prices drives the Sodium Sulphate price downward in the region. Detergent demand weakened from the regional market affecting the buying sentiments. The market value of Sodium Sulphate was hovering at USD 164/ton FOB Hamburg in December within Germany, as per ChemAnalyst Research Team data.
For the Quarter Ending September 2022
North America
During Q3 2022, the prices of Sodium Sulphate increased during the middle of the quarter and then drastically fell by the end of the quarter. The US manufacturing activities tumbled in July as more factories dialed back production in the face of shrinking orders and rising inventories. The labor shortages and disrupted global trade dynamics have fuelled the market growth during August. The orders from the downstream domestic and international markets decreased somewhat because of the slowdown in demand, which caused a negative market attitude and delivery delays. The prices ranged at USD 100/ton Sodium Sulphate FOB USGC during the end of the quarter.
Asia
The prices of Sodium Sulphate fluctuated in the Asian market during the third quarter of 2022, as per pricing data. The increased queries from the downstream detergents pushed the domestic manufacturers to raise quotations for Sodium Sulphate in the region. The prices of upstream Sulphuric Acid and Sodium Chloride fluctuated, putting cost pressure on the products' values. The input materials' market values impacted the variable production costs, exerting significant upward pressure on price realizations in China. Labor shortages and the production cost of raw materials affected the market sentiments. In July, the price hovered at USD 110/ton of Sodium Sulphate FOB Shandong.
Europe
The prices of Sodium Sulphate in Europe followed a similar fluctuating trend as that of the Asian market during the third quarter of 2022. The increased spot offers due to input price inflation for Sodium Sulphate weakened the buyers' sentiments at the beginning of the quarter. Europe's largest economy was buffeted by the sharp increase in energy prices, affecting the market sentiments of Sodium Sulphate among the major manufacturing firms. The substantial increase in input cost and output charges has provoked the market players to improve their quotations. As a ripple effect, the prices of Sodium Sulphate settled at USD 160/ton FD Hamburg by the end of the quarter.
For the Quarter Ending June 2022
North America
The spot offers for Sodium Sulphate have been observed to be on a bullish run throughout the second quarter of 2022. The supply turmoil unleashed by Russia's invasion of Ukraine has severely impacted trade activities across the globe. On the upstream price front, the Sulphuric Acid Costs have also surged by approximately 8% towards the end of Q2, prompting enough cost pressure on the market values of Sodium Sulphate. As a result, a consistent surge has been observed in manufacturers' quotations. As per the market players, the supply shortages have constrained production capacity as the input costs and output charges have escalated at substantial rates. In addition, the surge in material tariffs and increased fuel and transportation charges have driven up the operating expenses and supported the escalated values of Sodium Sulphate.
APAC
During the second quarter of 2022, the Sodium Sulphate market observed mixed demand fundamentals. In India, prices stagnated in the first half of Q2 and rose substantially amid hiked input costs. The leading market players have revised their quotations, witnessing the unprecedented surge in raw material prices. The ongoing summer season has brought on workforce shortages and further inflicted the price dynamics of Sodium Sulphate. In addition, the ongoing hostilities between European nations have further unleashed the supply turmoil and accelerated the cost of upstream Sulphuric Acid raw materials. The closure of key manufacturing industries of Sulphuric acid has provoked supply-side concerns for the product, elevating the reliance on other nations. Thus, the upstream cost pressure has strengthened the realization of Sodium Sulphate among local traders towards the end of the second quarter.
Europe
The price trends of Sodium Sulphate oscillated in the domestic region of Germany in the second quarter of 2022. The ongoing hostilities between European nations have severely obstructed energy supplies in the major economies of Europe. The curbed natural gas supplies from Russia have prompted the input supply-side concerns for Sodium Sulphate and pushed the manufacturing costs upwards. The substantial increases in input costs and output charges have led the market players to increase their quotations for domestic and overseas orders. However, the increased spot offers due to input price inflation for Sodium Sulphate have weakened the buyer's sentiments and caused a headwind to the demand outlook. Altogether, the rising upstream costs and stable inquiries from the downstream detergent sector have propelled the Sodium Sulphate contracts to escalate further in the regional market.
