For the Quarter Ending June 2023
The prices of Sodium Ascorbate across the United States demonstrate a mixed price trajectory during the Q2 of 2023. The values went on a continuous downward side in the month of April, which was primarily due to a constant drop in downstream inquiries from pharmaceutical, food additives, and personal care sectors since the previous month. Owing to this fact of inventories that were still on the higher side, the market participants were forced to lower their prices. Furthermore, as May approached, the market for its upstream Ascorbic acid continued to remain on the south side. This moderate increase in Sodium Ascorbate prices was supported by marginal growth in its downstream inquiries during the entire month of May. Since zero-covid was eliminated, trade between Asia and the US increased. This resulted in slightly improved imports for pharmaceutical excipients, balanced with an abundance of Vitamin C and Sodium Ascorbate supplies to meet local needs. Furthermore, at the end of Q2, the prices slipped again. Numerous Analysts claimed that inflation in the United States might ease, and both market conditions and trade dynamics have improved in the US. Still, lower demand for Sodium Ascorbate and its upstream ascorbic Acid across the nation continues to compel the merchants to offer at lower prices. With this, the prices of Sodium Ascorbate in the United States were assembled at USD 3050/MT USP CFR New York in the US.
Across the APAC region, the prices of Sodium Ascorbate witnessed a mixed price trajectory irrespective of its upstream Vitamin C market, which continued to demonstrate a decremented trend throughout Q2 of 2023. The cost of Sodium Ascorbate started the second quarter with weaker prices and ended Q2 on a bearish note, but the demand surged at a moderate level during the middle of the second quarter. Due to the limited demand that has been successfully balanced with supplies among domestic Merchants as April draws to a close, the price of Sodium Ascorbate declined steadily until the start of May 2023. Also, the National Bureau of Statistics reports that the manufacturing Purchasing Managers' Index (PMI) decreased from 49.2 in April to 51.9 in March, resulting in a decline in manufacturing activity. Moreover, in May, the prices for Sodium Ascorbate increased to a level that resulted in balanced supply-demand activity. However, the spread chart between upstream ascorbic acid and downstream Sodium Ascorbate was widened throughout this month. Moving towards the end of Q2, the demand for Sodium Ascorbate decreased again, owing to which the merchants offered their product at discounted prices which further benefitted the foreign purchasers as they were able to get the product at a cheaper cost than expected owing to Yuan depreciation against US dollar. With this, the prices for Sodium Ascorbate in June were assembled at USD 2890/MT USP FOB Shanghai.
Throughout the second quarter of 2023, the prices of Sodium Ascorbate across the German market followed the market trend of the APAC region. A decrease in inquiries from the downstream pharmaceutical and food industries kept the market on the south side until the month of April. Additionally, the market for Sodium Ascorbate shrank with a consistent drop in its upstream Ascorbic Acid cost. Additionally, the market suppliers' substantial supply holdings and the moderate demand from end users' sectors for both Upstream Vitamin C and downstream Sodium Ascorbate resulted in weakening market sentiments. Moreover, during the middle of the second quarter, the prices of Sodium Ascorbate showed an upward trend in response to rising demand. A surge in trade activities from exporting countries will probably be the main factor driving the market in Germany. Also, German consumer prices increased by a less-than-expected 6.3% on the year in May. Furthermore, moving towards the end of Q2, the prices of Sodium Ascorbate dropped again and were assessed at USD 3000/MT USP CFR Hamburg. A significant drop in upstream Ascorbic acid values by around 5 percent additionally influenced the weaker market sentiments for this month.
For the Quarter Ending March 2023
Throughout the first quarter of 2023, Sodium Ascorbate prices showcased an upsurged trend in the North American region. During the start of Q1, prices surged by more than 2 percent, supported by a significant surge in domestic inquiries from the pharmaceutical and food sector. Additionally, after the end of New Year's festivities, market participants focused on placing fresh quotations along with that increased the prices for remaining supplies in the domestic market. Besides this, costlier imports from China additionally reinforced the market trend of Sodium Ascorbate on the upper end. With this, the prices recorded during the month of February were settled at USD 4455/MT CFR New York.
Throughout the first quarter of 2023 in the Asia Pacific region, primarily in China, the Sodium Ascorbate prices demonstrate an upsurged trajectory. This price trend was attributed to a significant rise in inquiries from international and domestic markets. Moreover, the rise in its upstream Vitamin C cost additionally supported the positive market trend in China for Sodium Ascorbate. During January, the manufacturers increased their production capacity because of the arrival of CNY (Chinese New Year) to prevent the shortage or delay of shipments and stockpile their stocks to meet the overall local requirements. Besides that, the increase in container logistics indicates that the downward trend has finally come to a halt, which supports many players who export to foreign markets. Hence, the price of Sodium Ascorbate continued to maintain its inclined pricing trend until the end of Q1 and was recorded at USD 3700 /MT FOB Shanghai in February.
During the first quarter of 2023, Sodium Ascorbate prices in Europe followed a pattern like those in China. Prices increased by 4% at the start of the first month of Q1 because of a rapid rise in client queries combined with low supply levels. The general market trend during Q1 was further influenced by a reduction in inflation and eased trade activity. However, until the end of Q1, orders from end-user industries were above average, supporting robust demand and encouraging dealers and local retailers to keep their shelves stocked. With these figures, the price of sodium ascorbate was reported for the month of February as USD 4820/MT CFR Hamburg.
North American region displayed a significant dip in the prices of Sodium Ascorbate during the fourth quarter of 2022. Due to China's Golden Week celebrations, the import from China remained low along with inquiries which supported the weaker market sentiments of downstream Sodium Ascorbate in the month of October. Following November, with weaker sentiments, the prices of Sodium Ascorbate witnessed were settled at USD 4255/MT CFR New York. Additionally, higher inventories among domestic merchants and steadfast demand from the downstream sectors for upstream Vitamin C in the United States supported the market sentiments of Sodium Ascorbate in the United States throughout the final quarter.
The cost of Sodium Ascorbate in the Asia Pacific region, primarily in China, demonstrated a dwindled trend throughout the final quarter of 2022 as a result of the weak demand from the downstream pharmaceutical sectors. During October, new export orders were at their "lowest level since August" owing to the continuous shrinkage of China's manufacturing industry. Ease in trade disruption, along with shipping charges during November, did not affect the market sentiments of Sodium Ascorbate as the demand remained low. With this, the prices for Sodium Ascorbate during mid-Q4 were settled at USD 3450/MT FOB Shanghai in China. Moreover, with declining demand, stockpiling of inventories among the market players, and the prices of Sodium Ascorbate remained on the lower end till the end of 2022.
During the fourth quarter of 2022, the prices of Sodium Ascorbate followed a similar pattern to that of Asia Pacific. The market trend started on decreasing note and reached an assembly price of USD 4625 /MT CFR Hamburg in Germany during November because of declining demand from the end-user pharmaceutical industry and rising stocks among the market players as inquiries from the downstream sector for Sodium Ascorbate prices began to fall significantly in December, which was also supported by weakened upstream Vitamin C prices. Additionally, the inventories, with market players' however, remained larger, and their inquiries weaker during the Thanksgiving break.