US Sodium Citrate Dihydrate Prices Show Optimistic Trend Amidst Rising Demand And Supply Disruption

After a month-on-month declining trend, the Sodium Citrate Dihydrate prices experienced a slight improvement during the entire month of August 2023. This upward trend has been significantly reinforced by rising domestic inquiries resulting in a higher import from exporting nations.

The growing popularity of health and wellness products and subsequent rising consumption of Sodium Citrate Dihydrate in various industrial and pharmaceutical sectors has kept its market on the upper side during August 2023 as Sodium Citrate Dihydrate is used in various pharmaceuticals, including antacids, laxatives, diuretics, and to neutralize the stomach acids. At the same time, its major use as a flame retardant and a corrosion inhibitor resulted in its higher demand from Textile and metalworking industries throughout this month. Furthermore, rising demand for Sodium Citrate Dihydrate has resulted in higher inquiries for its feedstock Citric Acid from China, being one of the major exporters to the US considerably throughout the final weeks of August.

Citric acid is a natural preservative and flavoring agent that is often used in health and wellness products, such as dietary supplements, energy drinks, and cosmetics. The growing popularity of these products is driving demand for citric acid. This has significantly affected the supply chain momentum. China, a prominent player in the Sodium Citrate Dihydrate production sector, has encountered disruptions in recent months due to challenges such as higher power consumption owing to disrupted weather and logistical complexities resulting in delayed shipment. Consequently, this disruption has curtailed the global supply of Sodium Citrate Dihydrate, leading to upward pricing pressures. The freight charges associated with goods transport have also witnessed a recent surge. This was attributed to geopolitical tensions in the global market, such as the conflict between Russia-Ukraine.  This, in turn, further affected the overall supply dynamics for both upstream Citric Acid and downstream Sodium Citrate Dihydrate.

Furthermore, early August remains the warmest month in the United States. The Southwestern states, Texas and Louisiana, are experiencing the worst drought conditions. Additionally, the drought affects the Northwest and Northern Plains regions. It is predicted that this circumstance will substantially impact the transportation system, perhaps causing shipping delays. As a result, local retailers may experience supply shortages in the domestic market, which would increase prices. ChemAnalyst anticipation states, "In the upcoming month, the levels of Sodium Citrate Dihydrate will also climb. The downstream usage of Sodium Citrate Dihydrate is anticipated to continue high in the baking and beverage industries and other food additive sectors. This is also expected to keep exporting countries' inquiries for downstream Sodium Citrate Dihydrate and its feedstock on the upper side."