For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American Sodium Thiocyanate market exhibited mixed pricing dynamics, influenced by several interconnected factors that shaped the overall landscape. The arrival of delayed imports from Europe played a significant role in supply fluctuations, as shipments that had been postponed finally reached North American ports. However, logistical challenges posed by the hurricane season severely disrupted transportation networks, complicating the distribution of goods and leading to inconsistent pricing across the market.
Demand for Sodium Thiocyanate remained weak, primarily due to a contraction in the US manufacturing sector. This downturn resulted in declining output levels, which in turn affected downstream applications for Sodium Thiocyanate, contributing to a general sense of market uncertainty. Many suppliers had proactively stocked up in anticipation of potential disruptions from the hurricane season, allowing them to rely on existing inventories instead of seeking additional supplies, which further restrained demand. The construction sector, a key consumer of Sodium Thiocyanate, continued to face challenges throughout the quarter, with construction spending declining significantly. This reduction in activity led to decreased demand for the chemical, as contractors scaled back projects and delayed purchases. Additionally, players in the downstream chemical intermediate sector exhibited a cautious approach, adopting a "wait and see" mentality that discouraged bulk purchases. Many stakeholders hesitated to commit to new orders amid uncertainty regarding future market conditions, further contributing to the sluggish demand landscape.
Overall, these dynamics created a complex and challenging environment for Sodium Thiocyanate pricing and demand in North America during the third quarter of 2024, reflecting a market grappling with both external disruptions from natural events and internal economic pressures that hindered growth and stability.
APAC
In the third quarter of 2024, the Sodium Thiocyanate market in the APAC region experienced notable price increases due to a combination of strong demand from industries like construction and agrochemicals, alongside significant supply constraints. Delays in imports and disruptions in the supply chain contributed to the upward price pressure. Production levels of Sodium Thiocyanate remained low throughout the quarter, primarily due to disappointing sales in the downstream cement sector, prompting manufacturers to scale back output. Additionally, natural disasters, such as Typhoon Yagi, severely affected chemical production in China, leading to further shortages. China was the focal point of market activity, exhibiting the most pronounced price fluctuations. Seasonal factors, particularly the summer crop harvesting season, played a role in influencing demand. The correlation between demand and prices remained strong, indicating a stable market with positive sentiment despite challenges such as high freight costs and supply mismatches. By the end of the quarter, the price for Sodium Thiocyanate FOB Shanghai reached USD 1280/MT, marking a significant increase from the previous quarter. Plant shutdowns and disruptions also impacted market dynamics, underscoring the complexities faced by the industry during this period.
Europe
In the third quarter of 2024, the Sodium Thiocyanate market in Europe faced an overall bearish trend. Consumption of Sodium Thiocyanate as a chemical intermediate remained sluggish, largely due to a persistent downturn in the European chemical manufacturing industry and in the downstream construction sector. Furthermore, European contractors reported a lack of incoming projects, leading to destocking of construction materials, which resulted in improved supply levels of Sodium Thiocyanate in the domestic market and exerted downward pressure on prices. The cement manufacturing sector also struggled, with production declines further weakening demand for Sodium Thiocyanate. Compounding these challenges, supply disruptions occurred due to flooding at the beginning of the quarter and strikes in various regions, which hindered the circulation of the product. Additionally, exports to North America faced unfavourable conditions due to renewed geopolitical tensions, contributing to an accumulation of inventories at ports. This combination of reduced demand and supply chain disruptions significantly impacted the pricing environment for Sodium Thiocyanate in Europe throughout the quarter.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, the Sodium Thiocyanate market encountered a nuanced and dynamic landscape characterized by a blend of challenges and signs of recovery in later months. The market faced heightened freight charges that restricted the supply of Sodium Thiocyanate from Europe, complicating the overall market dynamics significantly. Meanwhile, demand from the cement industry experienced considerable downturns as construction spending continued to decrease due to rising mortgage rates, uncertainties surrounding election expenditures, and a broader decline in consumer confidence. Moreover, cement production across the United States continued to decline which imparted a downward pressure on the prices of the product.
Housebuilding, a pivotal component of the construction sector, saw sustained reductions in spending throughout the quarter, exacerbated by persistent increases in mortgage rates. However, towards the end of the quarter, there was a notable resurgence in public construction spending, driven by renewed confidence among real estate associations. This late-quarter improvement helped bolster prices in the market.
Furthermore, demand conditions from the agrochemical sector remained subdued due to off-season conditions affecting harvests, adding to the overall complexity of the market dynamics. These combined factors illustrate a Sodium Thiocyanate market navigating through supply constraints, fluctuating demand scenarios, and specific sectoral challenges, ultimately shaping a multifaceted market environment during Q2 2024.
APAC
In the second quarter of 2024, Sodium Thiocyanate prices in the APAC region witnessed a significant decline, driven by several critical factors. Sluggish demand from the construction sector, compounded by increased freight costs and adverse weather conditions causing supply chain disruptions, contributed prominently to the price downturn. Particularly noteworthy was the reduced appetite from the downstream cement manufacturing industry amid a broader economic slowdown, exerting substantial downward pressure on prices.
China, experiencing the most substantial price shifts within the region, faced persistent market challenges. The overall trend remained negative, influenced by seasonal factors and a lacklustre performance in construction. Despite attempts to boost domestic demand, investment sentiment remained subdued, failing to bolster Sodium Thiocyanate prices. The stark correlation between reduced manufacturing activities and declining Sodium Thiocyanate demand was evident, with the Purchasing Managers' Index (PMI) indicating contraction below the expansion threshold.
Comparing the first half of the quarter to the latter, prices decreased by 3%, highlighting a consistent negative trend. While there were no major plant shutdowns reported, ongoing logistical bottlenecks and high inventory levels contributed to inventory management challenges.
As of the end of Q2 2024, the latest recorded price for Sodium Thiocyanate stood at USD 1120/MT, underlining the prevailing market conditions characterized by declining prices amidst challenging economic circumstances.
Europe
Throughout the second quarter of 2024, the European Sodium Thiocyanate market faced persistent challenges, characterized by a bearish outlook driven by unfavorable demand conditions in the downstream cement industry. The construction sector continued its downturn, compounded by off-season harvest conditions, which exerted downward pressure on market dynamics. These challenges were further exacerbated by export difficulties, contributing to inventory build-ups across European ports due to labor strikes and weather disruptions that disrupted product circulation.
Supply conditions remained particularly challenging in Germany, where severe weather, including widespread flooding in southern regions, severely impacted transportation infrastructure. The River Danube's water levels doubled, reaching over six meters, leading to the suspension of barge operations for approximately 13 days and significant delays in shipments. Rail networks in South Germany were also affected, further increasing transportation costs and logistical complexities.
The downstream cement industry, a key consumer of Sodium Thiocyanate, continued to face adversity. Production of building materials in Germany contracted sharply by 15.3% year-over-year in the first two months of 2024, following a 16.7% decline in 2023. Cement consumption figures indicated an 18.9% year-over-year decrease in the first four months of 2024, highlighting a capacity utilization rate of just 46% for cement producers on an annualized basis. Moreover, exports to vital markets such as the Netherlands declined by 11.2% year-over-year in early 2024, further underscoring the weak export outlook.
Overall, the European Sodium Thiocyanate market grappled with persistent challenges from subdued demand, logistical disruptions, and adverse weather conditions, shaping a complex and challenging market environment throughout the second quarter of 2024.
For the Quarter Ending March 2024
North America
The opening quarter of the month witnessed a largely bullish market situation for the prices of Sodium Thiocyanate. The North American Sodium Thiocyanate continued to drive by expensive imports of the product from the exporting European and Asian markets due to disruptions witnessed at key waterways and a high demand from the for the product as a de-icing agent during the initial months of this quarter.
Moreover, demand from the downstream cement sector also witnessed gradual upticks as weather conditions improved. The demand of the product as a chemical intermediate sector also remained favorable as the manufacturing sector across the US continued to expand which resulted in healthy consumption rates.
The downstream construction sector overall across the United States witnessed a healthy performance as indicated by the number of house completions, heightened commercial construction activities and real estate developers being more active during the months of February and March 2024, except in the month of January 2024 when the construction sector witnesses a typical slowdown as peak winter season prevails.
Asia
The first quarter of 2024 has seen mixed trends in Sodium Thiocyanate pricing in the APAC region. Overall, prices have been influenced by various factors such as supply constraints, demand from the construction and chemical intermediate sectors, and the impact of seasonal fluctuations. In China, the largest market for Sodium Thiocyanate, prices have experienced significant changes. The market has been bullish, with limited supplies and moderate demand. This has led to price increases, particularly due to expensive imports and restocking activities. The Chinese Lunar New Year has also played a role in driving up prices, as private construction improves during this time. The correlation between supply and demand has been evident, with low inventories leading to price increments. The construction sector, although slowly recovering, has not shown sufficient momentum to drive significant price changes. Meanwhile, the chemical intermediate sector has experienced moderate growth, supported by improvements in production and new orders. Looking at the quarter-on-quarter comparison, prices have generally increased due to high demand from restocking activities and the use of Sodium Thiocyanate as a de-icing agent. In conclusion, the pricing environment for Sodium Thiocyanate in the APAC region has been positive overall, with price increases observed in both India and China. Supply constraints, improving industrial activities, and seasonal factors have influenced market prices. The latest quarter-ending price in China was USD 1190/MT FOB Shanghai.
Europe
The opening quarter of this year saw a largely mixed market for the prices of Sodium Thiocyanate. The demand for Sodium Thiocyanate remained robust during this period as a de-icing agent attributed to snowy conditions. Moreover, significant challenges have also been reported with the existing supply chain system which are primarily attributed to the strikes by Union Workers, resulting in limitations in logistics and transportation. However, the demand for the product from the chemical intermediate sector remained primarily low due to continued downturns witnessed in the manufacturing sector which eventually led to slow consumption of the product. Also complementing the low demand was the underperformance of the construction activities which resulted in the low demand for the product from the cement industry. Export conditions also remained highly unfavorable due to the persisting crisis at the Red Sea, which resulted in European suppliers receiving low orders from the international market due to elevated freight charges. This gradually led to stockpiling of the inventories.
For the Quarter Ending December 2023
North America
The Sodium Thiocyanate market faced challenges at the onset of the fourth quarter of 2023, influenced by adverse conditions in the United States' agriculture sector.
The impact of droughts, attributed to the El-Nino effect, resulted in suboptimal cultivation of winter crops, thereby diminishing the demand from the insecticide manufacturing industry. However, as the fourth quarter progressed, there was a notable improvement in the market dynamics of Sodium Thiocyanate, marked by increased consumption.
The positive transformation in Sodium Thiocyanate market conditions was particularly evident in the construction industry across the United States and Mexico. The construction of hotels in the United States and the escalating momentum of nearshoring activities in the Mexican market contributed to this improvement. Despite these positive trends, a softer turnaround in the U.S. manufacturing Purchasing Managers' Index (PMI) in November introduced a mild shortage of the product. This shortage, compounded by the acute depletion of existing inventories in circulation, resulted in a subsequent increase in product prices.
APAC
The pricing dynamics of Sodium Thiocyanate in the APAC region exhibited a varied pattern, marked by an initial 4% increase in October 2023, followed by a subsequent depreciation of approximately 4.2% in November 2023, and ultimately, a 12% upswing in December 2023. In October 2023, the Chinese market experienced an upward trajectory primarily attributed to heightened consumption in the downstream construction and chemical intermediate sectors of the industrial chemical manufacturing industry. The increase in China's Purchasing Managers' Index (PMI), surpassing the threshold limit, indicated growth in the non-manufacturing industry. These favorable conditions prompted domestic manufacturers to sell existing inventories at elevated prices, facilitated by positive procurement activities among traders. However, the months of November saw distress in the Chinese manufacturing and construction sectors. Despite various policies implemented by Chinese authorities, the construction industry continued to struggle, and manufacturing activities remained in contraction throughout November and December 2023. The decline in product prices in November 2023 can be attributed to diminished demand as product consumption stalled. Subsequently, in December 2023, the persistent contraction of manufacturing industries in China resulted in a 12% surge in product prices, driven by tight supply conditions exacerbated by adverse weather conditions. The assessed prices of Sodium Thiocyanate stood at USD 1180/MT FOB Shanghai at the conclusion of the last quarter of 2023.
Europe
The Sodium Thiocyanate market in the European region faced persistent challenges during the fourth quarter of 2023. Although prices exhibited a marginal increase in October 2023, driven by moderate demand from the insecticide sector coinciding with the barley crop harvest season, they subsequently declined throughout November and December. This downturn was attributed to subdued performance in the construction industry and chemical intermediate sector, as manufacturing activities continued to contract. The primary demand from the construction sector remained low, with the industry experiencing retrenchment for the thirteenth consecutive month. Notably, housebuilding emerged as the weakest segment within the construction sector, and other sub-sectors, including civil engineering and commercial buildings activities, also witnessed significant downturns. The contraction in manufacturing activities across the Eurozone further dampened demand from the chemical intermediate sector and solvent industries, resulting in a decline of approximately 1.1% in industrial chemical production. Overall, as the fourth quarter of 2023 drew to a close, the market situation for Sodium Thiocyanate in the European region continued to deteriorate.
For the Quarter Ending September 2023
North America
The assessment shows that Sodium Thiocyanate prices in the US market witnessed a decline during the third quarter of 2023 owing to unrestored demand from the domestic chemical intermediate segment. As per the data, demand fundamentals for the product have remained low in the meantime. Furthermore, it was observed that the downstream sectors struggled to show any sign of improvement during this quarter, but the prolonged labor shortage in the country suppressed the industry from thriving. However, prices of most of the Dye and pigment-related raw materials were falling consistently in the market, and Sodium Thiocyanate remained no exception in this case. However, PPI rose from 235.094 (July) to 235.795 (August), data released by FRED shows, impacting the overall recovery. In the H2 of Q3 2023, the US Sodium Thiocyanate market experienced price stability, largely attributed to unchanged demand from the downstream pigment sector. This was complemented by the steady domestic supply of sodium thiocyanate throughout the month.
Asia
Sodium Thiocyanate price trend remained bearish throughout the quarter in the Asian market on the back of a sudden rise in supplies amidst low demand in the regional market. As per the data, Sodium Thiocyanate prices declined by around 10% in China as well as in India during the third quarter of 2023. Further, imports of the product in India from China improved during the middle of the quarter by around 150% and declined again by 30% by the end of the quarter. The steep rise in supplies during the middle of the quarter severely affected the product’s availability in India and thus reduced queries for September. Therefore, product prices kept falling throughout this timeframe, while Chinese domestic consumption remained underwhelming, supporting this pricing trajectory. However, from an economic perspective, according to the data released by NBS China, PMI improved from 49.3 (July) to 49.7 (August), and it supported the pricing uptrend for several chemical commodities, but not in this case.
Europe
Sodium thiocyanate prices within the European market recorded a decline in July and August. This price downturn was primarily attributed to the subdued economic prospects coupled with lackluster demand in the market. Several Asian traders revealed that exports to Europe remained low during this period due to plummeting consumption, affecting their profitability. These factors collectively weighed on market sentiment for Dye and pigment-related raw materials across Europe. Nevertheless, it is noteworthy that industrial activities within the region demonstrated resilience during this timeframe. As indicated by Eurostat, the Industrial Production Index, which stood at -1.3% in July, showed an improvement to 0.6% in August 2023. On the other hand, regional economic activities, particularly in Germany, remained relatively stable and subdued throughout this period. Data released by Deutsche Bundesbank Eurosystem revealed that producer prices of industrial products sold on the domestic market held steady at 147.1 in September after a revision from 147 in July.
