Dipping Sodium Citrate Dihydrate Prices in Q2 2023: A Close Look at the US and German Markets
- 07-Jul-2023 11:18 AM
- Journalist: Bob Duffler
As the second quarter of 2023 concludes, Sodium Citrate Dihydrate prices reduced even more than the previous month across both regions, which includes the United States and Germany. Several factors, such as weaker purchasing activity, higher stockpiling of products, and a significant dip in upstream Citric Acid cost, supported the pessimistic price trend for Sodium Citrate Dihydrate.
Sodium Citrate Dihydrate is used as a food preservative and flavoring agent in the food industry, while in the pharmaceutical sector, it works as an emulsifier. Demand for Sodium Citrate Dihydrate has declined since the last of the first quarter, i.e., from March, and continued to drop until the final weeks of June. This resulted in a rise in inventories among the merchants to the extent that they focused on clearing their stockpiles to prevent profit loss.
The US market also experienced a continuous decremented trend for Sodium Citrate Dihydrate during June. As per the trend, the volume of imports into the United States keeps decreasing, and American businesses struggle to sell off their excessive inventories. At the main US container ports, the import cargo volume also decreased. The Sodium Citrate Dihydrate market also mimicked the price trajectory of exporting nations, primarily the Chinese market, as the prices continued to depict a weaker market trend for Sodium Citrate Dihydrate throughout June 2023.
The market price of Sodium Citrate Dihydrate in Europe also demonstrates a decremented market similar to those in China, continuous lower operational costs coupled with lessened customer inquiries propelled the manufacturers to decrease their domestic prices lower than their range in the hope of preventing the degradation of product amid summer season. However, market participants had enough storage for Sodium Citrate Dihydrate, which was more than enough when concerned about the poor demand. Apart from that, when compared with the previous month, the Consumer Price Index in June for Germany jumped 6.8 percent in June from a year earlier, up from May's 6.3 percent.
However, the Manufacturing Purchasing Manager's Index fell to 52.0 in June 2023 from 54.3 in May 2023. This is the lowest reading since January 2023. Moreover, The appreciation of the euro against the US dollar in June 2023 had a mixed impact on the German market. This has made imported goods cheaper for German consumers owing to which the manufacturers are ready to sell their downstream products at a lower cost.
As per the analysis by ChemAnalyst, " it is anticipated that the price of Sodium Citrate Dihydrate in forthcoming months would continue to mimic the market trajectory of June 2023 and decline with the same rate. Trade activity from exporting nations to USA and Germany is likely to remain weak while merchants would focus on destocking the previous stockpiles to restock the new batch amidst the arrival of a new quarter.