What would Dominate the Chinese Sodium Nitrate Market
- 20-May-2022 6:03 PM
- Journalist: Jung Hoon
Qingdao, China: After experiencing a completely chaotic market sentiment, the Chinese manufacturers and traders are finally getting some clarity about the pricing trends of different products. As lockdown regulations have recently been relaxed in the country, the commercial market is gaining momentum again, and consumer’s buying pattern has also become easy to track and predict.
Lately, the prices of Sodium Nitrate were observed surging in the Chinese domestic market. Afterward, the curiosity around, what could be the exact factor behind this price rise, followed the Sodium Nitrate market.
Sodium Nitrate primarily finds its usage in the food additive and fertilizer industry. So, is the downstream demand from these industries responsible for raising Sodium nitrate, or the upstream Nitric Acid is behind this whole scenario, has become a riddle now.
To get a closer look, ChemAnalyst researchers spoke with various manufacturers and traders from China, only to realize that Nitric Acid prices are soaring, which in turn is escalating the Sodium Nitrate price value in the regional market. “The Sodium Nitrate prices are increasing in response to augmenting Nitric Acid value in the Chinese market.” rightly quoted a manufacturer from Shenzhen, China. As per a trusted report, a hike of approximately 8% was observed in the prices of Nitric Acid from May 9 to May 13, 2022.
After digging a bit more, we learned that Nitric Acid prices are expanding due to the propelling Liquid Ammonia prices and the tightening supply of Nitric Acid. Altogether, the prime reason behind the price rise of Sodium Nitrate is growing Nitric Acid prices on the back of elevating Liquid Ammonia value and constraint supply rate.
As ChemAnalyst, “The Sodium Nitrate prices are expected to soar for the next few weeks on account of inflating Nitric Acid price value in the Chinese market. Furthermore, strong downstream demand from end-user industries is likely to contribute to the price hike of Sodium Nitrate as well. Meanwhile, skyrocketing crude oil prices and surging freight charges amidst Russia-Ukraine war tensions would add to the already augmented value of Sodium Nitrate.”
ChemAnalyst’s recent analysis shows a rise of more than 3.5% in Indonesia in the meantime, where the analysis states that prices are further projected to reach another significant hike for a further period in the global market.