Contrary to market sentiments, Sodium Lignosulphonate prices are declining in India
- 21-Feb-2022 2:54 PM
- Journalist: Jai Sen
Global market has been witnessing inflationary pressure since a long time, due to rising crude oil prices and improved offtakes from downstream industries. Demand fundamentals from different sector has been improved post decline in pandemic related uncertainties across the globe, which has induced optimism among manufacturers and traders. Despite these market fundamentals, Sodium Lignosulphonate prices tumbled in different markets including India. As per ChemAnalyst data, decline of round 8% has been observed within a span of 4 weeks in India since mid of January.
Rising uncertainties due to geopolitical tension between Russia and Ukraine has been concerning key manufacturers, as they are tensed about trade activities in forthcoming months. Rising crude oil value also remained a major concern for key players, as it has increased their input cost. However, Sodium Lignosulphonate is not directly related to Crude oil, but rising crude prices affects energy as well as transportation cost. In addition, demand fundamentals for the product remained constant in the meantime, while availability remained ample enough to satisfy the current need. Similarly in India, due to ample stocks availability for the product, traders heard negotiating on the existing inventories, which resulted into significant fall in current market prices.
As per ChemAnalyst analysis, Prices are expected to remain dull for further couple of weeks in India, as traders have enough cargoes available to satisfy the current need of the country. Later, prices may climb up on the back of trade disturbance and regional scarcity. Furthermore, soaring crude oil value and escalating tension between Russia and Ukraine might also affect Sodium Lignosulphonate pricing dynamics across global market in near term, while construction sector may show further significant rebound in forthcoming summer season.