Sodium bisulfite, an adaptive chemical substance that acts as a reducing agent and preservative in water treatment, food processing, and textiles, experienced dramatic price hikes in September 2024. Demand in the market improved across all sectors, with water treatment facilities speeding up buying by 15% and food processors experiencing steady usage rates of 10-12% month-on-month. Supply shortages pushed prices up as manufacturers ran at 75-80% of capacity based on shortages of sulfur dioxide feedstock and increased procurement expenses (6-8% increase). Inventories were 20-25% below optimum, and manufacturers were compelled to institute customer allocation practices. Compromised production margins were caused by increased sulfur and natural gas prices even with increased selling prices. The September price hike aligns seasonally but is at the higher end, indicating structural as opposed to purely cyclical growth in demand. Overall expectation is for further price firmness up to November 2024, and then a further 4-6% gain. Shipping difficulties, especially on China-Southeast Asia routes with 8-10% hike rates, also made market economics and trading conditions more complex.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
