U.S. Sodium Chlorate Market Faces Headwinds, Seasonal Recovery Expected in Upcoming Quarter

The U.S. sodium chlorate market is going through a slower growth, hampered by tepid domestic demand and changing global trading conditions. Demand from the paper and pulp sectors was slow, and particularly, low for bleaching applications. Although domestic consumption has not increased significantly, sodium chlorate producers have benefited, albeit marginally, from export opportunities, particularly to Southeast Asia and India. These countries have warranted greater attention by sodium chlorate producers reflecting global trends in recovered fibre shipments. Notwithstanding the ongoing challenging conditions, players in the market have a cautiously optimistic outlook for the fourth quarter driven by demand for higher-graded packaging paper and a tighter supply chain of recycled fibre.

From a production standpoint, sodium chlorate production remained steady with no meaningful plant shutdowns reported among existing U.S. facilities. However, buying activity was dampened by the low price of hydrogen peroxide and...