Sodium Chlorate Gains Stability in the West, Muted Demand Remains a Key
Sodium Chlorate Gains Stability in the West, Muted Demand Remains a Key

Sodium Chlorate Gains Stability in the West, Muted Demand Remains a Key

  • 10-Sep-2024 4:31 PM
  • Journalist: Nina Jiang

Sodium Chlorate prices have showcased an overall stability during August 2024 in the Belgian market, with persistently low import prices from China. Further, the demand for Sodium Chlorate from the downstream pulp and paper industries was on the decent but not appealing side leading to lower downstream inquires. Furthermore, the demand from the international market like Asia from paper and pulp producers remained muted.

In the FMCG and real estate sector, price increases were observed in tobacco, private rents, non-alcoholic beverages, hotel rooms, clothing, and restaurants, while motor fuels, household appliances, and natural gas saw declines. Overall inflation dropped in August compared to July, with this drop, Sodium Chlorate’s downstream market pulp prices in China, US and Europe eased down this month as rising inventories and supply availability amid summer slowdowns helped in price decline in mid-August. While some sellers described a balanced market for Sodium Chlorate’s downstream hardwood and softwood pulp, with one seller citing “decent customer demand,” the majority told of an influx of Sodium Chlorate inventory and supplies that brought down prices for Sodium Chlorate buyers. Contacts indicated that higher inventories and packed warehouses contributed significantly to the price reductions. One contact noted, “There is a need to move large quantities of Sodium Chlorate’s downstream pulp and paper stock,” highlighting the downward pressure on prices. In America, according to market player, in July, more mills came out of outages with flush tonnage at the same time that Chinese consumers bought virtually nothing from global suppliers, and prices for end products are low and imported pulp prices are high. China’s demand remained muted, contacts said.

In the U.S., Sodium Chlorate prices have remained stable, supported by no significant change in production costs amidst cheaper natural gas. U.S. retail sales exceeded expectations in July, rising by 1.0% after a revised 0.2% decline in June, which may help ease concerns about a potential economic slowdown, especially given the recent increase in unemployment rates. Stronger retail sales could temper expectations for a significant interest rate cut next month, with a quarter-point reduction now appearing more likely. Core retail sales, excluding categories such as automobiles, gasoline, building materials, and food services, grew in July, reinforcing the strength of consumer spending.

In the global market, chemical Sodium Chlorate’s downstream market pulp producer’s inventories remained steady at 43 days-of-supply in June, according to the Pulp and Paper Products Council (PPPC). However, since June, the price erosion that initially began in China has spread globally, indicating that producer inventories are trending upward. The shipment-to-capacity ratio, a key demand indicator, in June was below the year-ago figure, while it was above the figure in May.

ChemAnalyst projects that Sodium Chlorate prices are likely to rise in the Western market due to anticipated increase in energy costs, which may drive up production expenses. Additionally, heightened procurement activities from downstream industries are likely to contribute to this upward price trend.

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