Mixed Sentiment Prevails in Asian Sodium Nitrite Market as Weak Demand Persits
- 26-May-2023 1:58 PM
- Journalist: Xiang Hong
The Sodium Nitrite market in the Asian region has shown mixed sentiments in the second month of Q2 2023 as demand remains weak. Market participants noted that downstream demand from the pharmaceuticals, textile, food, and beverages sectors was observed to be sluggish in May 2023 due to unfavorable market conditions.
In China, market prices of Sodium Nitrite continued to decline this month due to suppressed demand and uncertainties in the overseas consumer market. Recession fears and confusion about interest rate hikes in the US economy have contributed to this situation.
The spot market prices for Sodium Nitrite in Qingdao were USD 761 per tonne in the week ending May 5, 2023, representing a 1.1% increase from the previous week. However, in the second week of May, prices dropped by 4.7% to USD 682 per tonne due to a weaker demand outlook from the food and beverages industry. Prices further decreased by 4.0% to USD 655 per tonne in the week ending May 19, 2023, due to surplus inventories in the regional market. Despite moderate domestic production rates, market participants believe that inventories of Sodium Nitrite were sufficient to meet the limited consumer demand.
Meanwhile, in the Indian markets, the prices of Sodium Nitrite initially declined, and later in mid-May, the quotations stabilized in the region. In the week ending on May 5, the prices quoted for Sodium Nitrite Ex-Vapi were USD 840 per ton, and the market fundamentals for the commodity were balanced. However, in the next two weeks, the demand side deteriorated amid ample inventories in the region, and the downstream consumers in the textile, pharmaceutical, food, and beverages industries slowed the product purchases. In the second week, the spot prices plummeted by 6.2%, settling at USD 881 per tonne.
According to ChemAnalyst, the Sodium Nitrite market is expected to be driven by increased consumption of convenience snacks in Western countries, and its rapid spread to other countries and incline in the spot market prices are foreseen shortly.