Global Sodium Citrate Prices Continue to Tumble At the End of Q4 2022
- 28-Dec-2022 3:24 PM
- Journalist: Robert Hume
Since the third quarter of 2022, the price of Sodium Citrate has been declining on a global scale, and as December 2022 approaches, the market trend is continuing in this direction. One of the main causes of the continually falling price of sodium citrate is the decreased upstream cost of citric acid and the stagnant downstream demand.
The supply chain interruption in Germany starts to subside in December, bringing some respite to nearby enterprises. However, as inventories continued to rise despite a decline in operating rates, the smoother product flow coupled with falling demand may further degrade the market's fundamentals rather than bring about balance. Businesses had stocked up on practically all commodities, including Sodium Citrate, due to supply chain shock and zero COVID rules in China. As a result, market participants had to sell the products at lower prices to avoid losses. However, Sodium Citrate prices have decreased by 1.87 percent to till date.
Sodium Citrate's market momentum in the U.S. likewise has a similar tendency throughout the year 2022. The manufacturers were primarily concerned with disposing of their stocks to ramp up fresh outputs in the upcoming months as the continuous destocking season of previously accumulated inventory took place in December. However, markets are anticipated to remain closed in the final weeks of December as the holiday season approaches, and less end-user demand keeps the prices on the weaker end. The weakening price trends of Sodium Citrate are further reinforced by the diminishing price tendency of its upstream Citric Acid market, which is likely to remain frail. Therefore, in line with the previous month's pattern, the price of sodium citrate in December shows a decrease of about 0.98 percent.
According to ChemAnalyst, it is anticipated that the price of Sodium Citrate might improve as the new year approaches. Both regions' downstream demand might pick up speed, which would boost output rates. Additionally, after the holiday season, domestic markets will open again, supporting prices upward in January 2023.