A Consistent Spike in Baking Soda Value, What's Cooking
- 16-May-2022 5:22 PM
- Journalist: Jai Sen
New Delhi, India: It's astounding to witness that, on the one hand, where the market scenarios are fluctuating every minute, the sentiments of Sodium Bicarbonate (Baking Soda) market have consistently been rising in the Indian market.
But why? What could be the best argument supporting this constant surge in the prices of Sodium Bicarbonate?
Experts are arguing about the several possible factors backing up this continuing increment in the Sodium Bicarbonate value. Feedstock, Freight charges, or downstream demand which is dominating the Baking Soda market. Let's find out.
After talking to several manufacturers and traders, ChemAnalyst researchers realized that it's not a single element causing the price hike of sodium Bicarbonate but rather a cumulative effect of different determinants.
The prices of Soda Ash (Sodium Carbonate), which is the feedstock of Sodium Bicarbonate, have been escalating over the last few weeks, eventually leading to the soaring prices of Sodium Bicarbonate. Meanwhile, the scarcity of trucks in China for delivering products to the ports has been propelling the logistics charges. China is one of the significant Sodium Bicarbonate exporters to India; hence the ripple effect of truck inaccessibility has been observed in India.
Besides, excessive downstream demand is adding up to the already exacerbating price value of Sodium Bicarbonate. As the number of bakeries and confectionaries is growing in the domestic market due to the introduction of several international bakery brands in India, the consumption of Sodium Bicarbonate has been rising.
Furthermore, consumers are gradually increasing their bakery consumption due to the proliferating western culture absorbance, which is a significant reason behind elevating Baking Soda demand. Online retail of bakery products also influences its sale because of the added convenience while purchasing.
According to ChemAnalyst, "The market of Sodium Bicarbonate would keep flourishing in the upcoming weeks. The prices are likely to surge as well due to the combined effect of Soda ash price rise, high freight charges, and enhanced downstream inquiry."