Optimistic Outlook for Global Sodium Citrate Dihydrate Prices as Q4 2023 Approaches
- 06-Oct-2023 4:46 PM
- Journalist: Gabreilla Figueroa
Comparing the market trend of the previous month, the price values of Sodium Citrate Dihydrate as per the market participants would also remain on the upper end for the entire month of October. The demand for Sodium Citrate Dihydrate, a typical excipient used in pharmaceutical products, has recently increased as the global economy has improved and the pharmaceutical industry has grown. This suggests that price growth may continue to follow its upward trend throughout the beginning of the fourth quarter of 2023, and manufacturers had to keep enough stock of Sodium Citrate Dihydrate in their warehouses to keep up with the steadily evolving demand.
Additionally, one of the largest exporters of Sodium Citrate Dihydrate, namely China, has recently had to reduce production due to environmental regulations and power shortages, which had a detrimental effect on the availability of finished goods among retailers and is likely to affect the future availability of downstream product. The retailers also concentrate on unloading their previous stockpiles at a higher price than anticipated. This was further supported by depleting their stock of Sodium Citrate Dihydrate before the start of the following quarter so they could restock their shelves with fresher stock levels.
During the entire month of September, there was an increase in the prices of Citric acid. The rising cost of raw materials for Sodium Citrate Dihydrate, notably Citric Acid, was primarily a result of heightened demand during the latter half of 2023, driven by the Asia Pacific region being the world's largest Citric acid producer. Ascending costs of inputs, such as surging energy prices, kept the manufacturing activity on the upper side, resulting in an increasing Citric Acid price globally. Additionally, speculators raised their bets due to a strong trend in the spot market. Concurrently, limited supplies from major exporting nations played a significant role in the upward trajectory of Citric acid prices, which further kept the price trajectory for Sodium Citrate Dihydrate in the northerly direction.
Furthermore, the world's leading exporter, China, is on the edge of a temporary production slowdown due to upcoming events. This means arriving of impending occasions and holidays, there may be shipping delays, which will likely disrupt the Sodium Citrate Dihydrate industries' supply chains, i.e., the approaching Mid-Autumn Festival, which lasts for eight days, the Hangzhou Asian Games, and the National Day holiday are all anticipated to have an impact on the supply chain momentum in both the domestic and international markets for all the goods including in the pharma excipient sector such as Sodium Citrate Dihydrate. This is further projected to result in logistical imbalance because exporting finished goods could put pressure on the supply chain.