Solid Demand Fundamentals Reinforce the Sodium Sulphate Market Outlook Globally
- 22-Aug-2022 6:55 PM
- Journalist: Francis Stokes
In the global region, the chemical industry has been confronting substantial headwinds such as labor shortages, ongoing supply-chain challenges, continuing risks associated with the pandemic, political issues between the West and the European Nations, and has affected the price fundamentals of various chemicals, including Sodium Sulphate. However, the Sodium Sulphate market has gained momentum entering the third quarter of 2022, following the rising demand, industrial production, and capacity utilization.
In India, the price trends of Sodium Sulphate have demonstrated an inclination of nearly 8% on a month-to-month basis. One of the industry’s leading market players, Hindustan Unilever Limited (HUL), inaugurated a new downstream detergent manufacturing industry in the Hamirpur district of Uttar Pradesh, boosting the market fundamentals of feedstock Sodium Sulphate among the traders. Furthermore, the rising input costs have buffeted the profit margins of FMCG enterprises, leading them to pass on the price hike to the terminal consumers. However, as per the observed market scenario, the downstream demand has spiraled up with improved consumer spending despite high inflation and escalated interest rates.
Furthermore, Sodium Sulphate prices strengthened by approximately 4% in the Chinese market last month. The stimulating operating environment has levied its impact on the benchmark prices of Sodium Sulphate in the regional market. Similarly, in other countries like the USA, Japan, and South Korea, the price realizations of Sodium Sulphate have witnessed an uptrend owing to active inquiries from the downstream detergent manufacturing firms. However, the global macro-economic challenges coupled with uncertainty in the input materials costs have significantly impacted the operational expenses of Sodium Sulphate and accelerated the market outlook of Sodium Sulphate.
As per ChemAnalyst, the active demand from the downstream detergent sector will spur the market growth of Sodium Sulphate across the nations. However, the industry players anticipate that with raw material prices trending downwards in the global region, the upside risks to inflation will remain significant, pressuring the market outlook for sodium sulfate in the forthcoming weeks.