Global Sodium Bicarbonate Prices Likely to Rise in September 2023
- 07-Sep-2023 3:09 PM
- Journalist: Nicholas Seifield
Based on available data, it is anticipated that Sodium Bicarbonate prices will experience a global uptrend during the month of September and beyond. This upward price movement follows a rebound observed at the conclusion of August, wherein Sodium Bicarbonate prices regained their upward trajectory. This resurgence in the pricing of Sodium Bicarbonate is attributed to several factors, including heightened raw material costs, escalated manufacturing expenses, increased production rates, surging market demand, and a noticeable supply gap.
At the outset of August, the inventory of Sodium Bicarbonate was deemed adequate; however, the pricing of the underlying raw material, soda ash, exhibited resilience. The operational capacity of soda ash remained relatively steady, and the prevailing trade environment can be characterized as moderate. Recent developments indicate an upswing in demand for downstream soda ash acquisitions, leading to an expansion in supply-demand dynamics. Consequently, we anticipate a predominately robust Sodium Bicarbonate pricing trajectory in the latter stages, subject to downstream market demand, which may subsequently contribute to price stabilization.
At the commencement of the previous month, August, the prevailing market rate for raw material soda ash stood at 2,060 RMB/ton, while by month-end, the average market price had escalated to approximately 2,890 RMB/ton, reflecting a notable price surge of 40.29% in the Chinese market and in relation to demand dynamics, key downstream sectors, including pharmaceuticals, textiles, and food, exhibited a favorable inclination towards Sodium Bicarbonate as of the conclusion of August. The pricing trend for Sodium Bicarbonate has been notably robust in recent times. This phenomenon can be attributed to a twofold development: firstly, there has been a noteworthy constriction in the supply of Sodium Bicarbonate from manufacturers; secondly, the upstream precursor material for Sodium Bicarbonate, soda ash, has experienced substantial price escalation. Furthermore, the demand for Sodium Bicarbonate has witnessed an upswing in various sectors, such as pharmaceuticals, textiles, and food, prompting increased procurement activities. Consequently, this has fostered a more favorable shipping sentiment compared to previous periods.
In the context of the business environment, the utilization of raw materials, specifically Soda ash, exhibited positive indicators. As of September 1st, market conditions were conducive to trading activities, with data reflecting an approximate 81% operational capacity for soda ash. Notably, there was an upswing in the price of soda ash earlier in the current month. Various enterprises undertook maintenance activities, leading to a constrained supply of soda ash and delayed delivery timelines. Nevertheless, the overall delivery situation remained within acceptable parameters, and downstream businesses proactively replenished their soda ash stocks. Data also indicates that soda ash manufacturers currently hold an inventory of approximately 140,000 tons, whereas enterprise inventories remain relatively limited. Consequently, sourcing soda ash in the market has become challenging due to this scarcity of available goods.