For the Quarter Ending June 2022
North America
The second quarter of 2022 had positive comments on the North American Sodium Bisulfite market. Although China's sporadic lockdowns forced producers of different food additives to lower costs, the US market offtakes for Sodium Bisulfite in end-user food and beverage industries remained robust. Over the quarter, there were enough inventories to meet the domestic demand. The Biden administration took the initiative to waive some tariffs on imports from China to lower the skyrocketing inflation as the two largest economies in the world, i.e., China and the US, struggled with congested supply chains and shifting oil costs.
Asia Pacific
The market for Sodium Bisulfite in the Asia Pacific region showed a positive trend in the second quarter of 2022. The prices of Sodium Bisulfite in the Chinese domestic market were unchanged during the first half of the quarter before rising towards the end of the period. Sending the product to overseas markets was significantly more challenging than the unreasonable zero covid tolerance policy implemented following the covid outbreak in the first week of April. The tolerance regulations and legislation significantly impacted manufacturing and logistics, given that China is the world's largest supplier of Sodium Bisulfite. Offtakes from the downstream food and beverage sectors remained constant throughout the year because suppliers and clients in both the Chinese and Indian markets had sufficient stockpiles.
Europe
Due to sustained offtakes in the end-user food and beverage sectors, the European Sodium Bisulfite market displayed a positive trend during the second quarter of 2022. To satisfy the entire downstream demand in the region, European manufacturers and traders had a sizable quantity of Sodium Bisulfite inventories on hand. While the conflict between Russia and Ukraine significantly impacted shipping prices and the movement of goods into and out of Europe, it also made it more difficult for European nations to do business on global markets.
For the Quarter Ending March 2022
North America
In North America, the prices of Sodium Bisulfite surged throughout the 1st quarter of 2022 on account of firm downstream demand. The increased consumption of Sodium Bisulfite in the food and beverage industries propelled the prices of Sodium Bisulfite upwards. Furthermore, the augmented upstream cost due to enhanced feedstock prices soared the Sodium Bisulfite prices. Besides, inclined crude oil prices and logistic charges amidst Russia-Ukraine war tensions are other few factors that influenced the price value of Sodium Bisulfite in the domestic market. Moreover, the shortage of labor and continued port congestions further supported the price hike of Sodium Bisulfite. The prices of Sodium Bisulfite were assessed at USD 905/MT CFR New work and USD 725/MT FOB Texas in March.
Asia Pacific
Asia-Pacific region witnessed an upsurge in the price of Sodium Bisulfite during Q1 of 2022, backed by solid demand from end-user industries and increased upstream costs. In India, the evaluated prices for Sodium Bisulfite food-grade were USD 543.35/MT Ex-Mumbai and USD 571.08/MT Ex-Vadodara in March. The reason is escalated demand from food processing industries to use it as a food additive or food preservative. Besides, the price value of upstream Sulphur Dioxide increased during the considered period, which in turn caused a hike in Sodium Bisulfite prices. Furthermore, skyrocketed crude prices owing to the continued Russia-Ukraine conflicts added to the already augmented price value of Sodium Bisulfite. Higher logistic charges and shipping restrictions further propelled the prices of Sodium Bisulfite.
Europe
Following the pricing trend of North America and Asia-Pacific, the European market observed a noticeable increment in the prices of Sodium Bisulfite during Q1 of 2022 by 5-6%. The primary factor which influenced the price value of Sodium Bisulfite was increased demand from downstream industries. Furthermore, the supply was somewhat constrained due to enhanced feedstock prices, which propelled the Sodium Bisulfite prices even more. In addition, port congestions in several essential ports and cargoes shortage were other significant factors that led to the price surge of Sodium Bisulfite. Moreover, the fuelled freight charges and crude oil prices have also supported the price soar of Sodium Bisulfite.
For the Quarter Ending December 2021
North America
The pricing trend of Sodium Bisulfate remained stagnant across the North American region during Q4 2021. The Sodium Bisulfate FOB Texas and CFR New York prices got assembled at USD 885/MT and USD 715/MT, respectively, in December. In terms of demand, consistent offtakes from the downstream food and beverages industries were observed in quarter 4. The increased cost of raw materials, soaring energy prices, supply disruptions, high freight charges, and the Omicron spread of the coronavirus has further supported the increased prices of Sodium Bisulfate in the North American region. The demand for full transparency about the ingredients, production processes, and supply chain from consumers has subsequently profited the margins of various food preservatives in the US, which has also contributed to the increased demand for the product.
Asia Pacific
During the fourth quarter of 2021, the pricing trend of Sodium Bisulfite demonstrated mixed sentiments in the Asia Pacific region. In the Indian domestic market, the Ex-Mumbai prices of Sodium Bisulfate increased from USD 507.02/MT to USD 518.76/MT from October to November on the back of the increased demand amid soaring freight charges. Several players increased their offers during Q4 in order to sustain their profitability. The surged raw material cost coupled with skyrocketing production costs due to coal shortage across China have also contributed to the overall price trend in the country. Amid the supply constraints, the Ex-Vadodara prices for Sodium Bisulfate got settled at USD 207.02/MT in December.
Europe
The European market of Sodium Bisulfate mirrored the pricing trend of the US during this quarter, which eventually gained numbers from mid-November. High commodity prices, increased freight costs, high raw material prices, and the emergence of the Omicron variant have exacerbated the market of Sodium Bisulfate across Europe. The demand remained strong from the food and beverage industries in this quarter.
