The cost of Sodium Ascorbate remained fragile with the start of November due to a persistent reduction in its feedstock Vitamin C price in both China and Germany, where China is its significant exporter. The weaker market activities of Sodium Ascorbate continued since the mid of the first quarter, i.e., in February, and followed till November. Additionally, lower downstream demand from the Food and Pharmaceutical sector kept its cost downward.
The price of Sodium Ascorbate decreased by 2.63% this month in Germany. As Germany is getting dressed up for the festive season with the launch of a magical four-week festivity starting on November 27 and ending on Christmas Eve, owing to which the customer demand remained low. Furthermore, both countries had enough stock of Sodium Ascorbate with the local suppliers to meet the immediate orders.
Besides that, Chinese economic activity fell below expectations in November, as disruptions caused by COVID-related lockdowns continued to chip away at growth and worsened sentiment among manufacturers, which in turn reinforces the current market sentiments of Sodium Ascorbate in China. Additionally, the prices of Sodium Ascorbate in China decreased by 4.17% in November, even more than in the previous month, and are expected to decline further by around 2% in December
In both the regions compared with October, prices remained unchanged in terms of the trend. Global suppliers started stockpiling inventories in advance, leading to ample product availability to cater to the downstream demand admits of a further market shutdown during the Christmas holidays. As a result, many end-users from the Pharmaceutical, Nutraceutical, and Food sectors started maintaining their inventory levels with them.
According to ChemAnalyst, “In upcoming months also, the prices of Sodium Ascorbate will continue to showcase a downward trend as demand from end-users will not improve. Weak buying sentiments are likely to remain in both Countries. Also, sufficient stock in the market on the back of decreased production costs in the exporting country might keep Sodium Ascorbate prices in the downward direction in both regions.”
