German Sodium Nitrite Prices Sustain Downtrend Amid Sluggish Demand
German Sodium Nitrite Prices Sustain Downtrend Amid Sluggish Demand

German Sodium Nitrite Prices Sustain Downtrend Amid Sluggish Demand

  • 30-Nov-2023 3:48 PM
  • Journalist: Harold Finch

Hamburg, Germany: The Sodium Nitrite market in Germany has displayed a persistent downward trend in November, and the prices of Sodium Nitrite have been tumbling week-on-week. Sodium Nitrite prices have been falling owing mostly to sluggish demand from downstream sectors such as food and beverages. The current market environment attributes a decrease in the frequency of product buying due to prolonged economic uncertainty.

The chemical sector in Europe, especially Germany, has forcefully switched toward cost-cutting measures, prompting several corporations to shut down manufacturing sites owing to continuous weak demand for their goods like Sodium Nitrites. Furthermore, the chemical giants in the United States have suffered due to lackluster demand for Sodium Nitrite amid poor domestic consumption.

Despite a minor increase in output in the third quarter of 2023, Germany's chemical industry major sees no signs of a reversal before the end of the year. The German chemicals sector, the country's third-largest business, which employs around half a million people, is still struggling as clients hesitate to place new orders as long-term economic uncertainty keeps raw materials and energy costs high. In July-September, the organization reported a 6.1% reduction in yearly production volumes, including pharmaceuticals and specialty chemicals such as Sodium Nitrite, while revenue fell 13.8%.

Additionally, the world's largest chemical company reported a hefty loss for the third quarter of this year, compared to the previous year, whereas the revenue dropped by 28% in this period. The German conglomerate attributes the decline in total sales volumes to drastically lower pricing for commodities supplied by its materials, chemicals such as Sodium Nitrites, and many other divisions, as well as decreased overall sales volumes in both domestic and international markets.

Furthermore, the value of exports and imports in the European Union fell further in the third quarter of this year. In the third quarter of 2023, EU imports and exports declined by 4.6% and 1.2%, respectively, resulting in an EU trade balance surplus of around €18 billion. The greatest recent surplus (€6.9 billion) came in the third quarter of 2021. Rising energy costs caused a massive trade imbalance between the fourth quarter of 2021 and the first quarter of 2023, overshadowing surpluses in other product categories.

According to the ChemAnalyst database, the Sodium Nitrite market is anticipated to fall further in the coming weeks. According to industry experts, the Sodium Nitrite market's sluggish demand is also projected to persist in the first quarter of 2024. As per the industry experts, the government's electricity price package would be inadequate to increase market competitiveness.

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