Supply Disbalance Affecting Sodium Lignosulphonate Availability in India
- 30-Jun-2022 6:00 PM
- Journalist: Jai Sen
The ongoing Russia-Ukraine war has been affecting the supply chain in the global market for a long time, and traders have been facing snags in procuring cargoes from Russia or Ukraine. As per the latest market insights, the Sodium Lignosulphonate price in India has showcased mixed market sentiments owing to trade disbalance.
A trusted market source of ChemAnalyst revealed that the price of Sodium Lignosulphonate originating from Russia has been under tremendous pressure, while some traders have zero inventories for Russian material. After being asked about the price quotation for Russian material, the source revealed that procurers have to wait for more than 1-2 months for purchase, as cargoes might arrive by the mid of August 2022.
On the other side, traders are ready to negotiate over "China make" Sodium Lignosulphonate cheaper than the Russian material. However, several niche buyers opt for Russian material only due to its quality, but procurers are also choosing Sodium Lignosulphonate from China under the pressure of urgency.
As per the data, prices of Sodium Lignosulphonate remained stable during June 2022 in India, as despite the scarcity of Russian material, availability has been counterbalanced by Chinese-origin Sodium Lignosulphonate in India.
Since the Russia-Ukraine war escalated, supply chain activities in Europe have disturbed, affecting the availability of certain materials in the domestic as well as the Asian market. Furthermore, high raw material costs under the influence of extensive supply disbalance led to a steep rise in prices of several commodities, including Sodium Lignosulphonate in the global market.
In the US market, Sodium Lignosulphonate prices have also risen during the past couple of weeks, owing to stable demand amidst high inflationary pressure. However, the US market has been under the threat of recession, which may slow down the country's economic activities in the coming months.
As per the ChemAnalyst analysis, prices of Sodium Lignosulphonate are likely to rise further in the Indian market due to the scarcity of Russian material. Additionally, due to the conflict between Russia and Ukraine, prices are expected to trend upward in the US and Europe in the upcoming month.