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Sodium Lignosulphonate Price Shifts: Stability and Slumps Across Global Markets
Sodium Lignosulphonate Price Shifts: Stability and Slumps Across Global Markets

Sodium Lignosulphonate Price Shifts: Stability and Slumps Across Global Markets

  • 09-Aug-2023 6:20 PM
  • Journalist: Nina Jiang

Prices of Sodium Lignosulphonate have slumped by a median of almost 1% across China, the United States, and Saudi Arabia while remaining stable across India, even though prices of upstream soda ash exhibited mixed sentiments across all four countries.

Prices of Sodium Lignosulphonate depreciated by a margin of 1% in the United States even though prices of upstream soda ash showed an increment of 15%. This is largely due to the slump in the butter packaging industries as dairy production decreased. In the construction segment, demand from the downstream adhesive industry expanded as sales of single-family homes increased. The primary demand from the downstream food preservative industry also declined as FMCG organizations reported a decline in the sales of the second quarter of 2023, which consequently contracted demand for the food packaging segment.

In the Chinese market, prices of Sodium Lignosulphonate witnessed a bearish situation, with prices declining by 1%. This was particularly due to the depreciation in the prices of upstream soda ash by almost 2%. The demand for Sodium Lignosulphonate was recorded to be sluggish from the downstream marble adhesive industry as construction activities were primarily halted due to heavy floods. Primary demand from downstream dairy product packaging also slowed due to reduced activities in dairy farming as flood waters are not expected to recede for a month.

In the Indian market, prices of Sodium Lignosulphonate have remained stable throughout July, even though prices of upstream soda ash have declined by 10%. This was due to ample demand from the adhesive industry from the construction and consumer segments. The demand for food packaging and preservatives also increased as the food industry expanded. The demand, however, was not sufficient to change the market situation.

Prices of Sodium Lignosulphonate depreciated by 1% across Saudi Arabia due to slowed demand from downstream FMCG industries. Demand from downstream construction activities was largely absent due to the negative outlook amongst consumers due to sluggish economic conditions, evidenced by an increment in CPI from 109.37 to 109.58, and PMI expected to fall at the end of July.

To conclude, prices of Sodium Lignosulphonate have remained largely stable over the above regions, despite major variations being observed in the prices of raw materials. This is largely due to weak demand from FMCG and construction industries in the United States, Saudi Arabia, and China. Demand from India was the strongest among other countries but was insufficient to surpass the supply of Sodium Lignosulphonate. However, the overall demand for Sodium Lignosulphonate may increase if the inflationary behavior of stocking food supplies sets amongst consumers.

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