For the Quarter Ending December 2022
The costs of Sodium Chlorate plummeted in the North American market, with prices hovering at USD 720/ton FOB Texas (USA) during November in the fourth quarter of 2022. The supply constraints were eased in the USA market, although having high inventories and high stockpiling of products. The demand for Sodium Chlorate decreased in the regional market with higher stockpiling of the product. With bullish consumption levels in the regional market, prices declined as the feedstock (Sodium Chloride) declined. This risk, along with sustained high raw materials and commodity prices, wage inflation, a growing inability to pass through cost increases, and continued supply chain disruption, has been observed in the US market.
The prices of Sodium Chlorate plunged in the Asian market during the fourth quarter of 2022, with costs ranging from USD 525/ton FOB Qingdao in December 2022 within the Chinese domestic market. The supply chain in the Chinese market was moderate, with higher levels of inventories with the traders and the suppliers due to lower downstream consumption. The supply chain in the Chinese market was moderate, with higher levels of inventories with the traders and the suppliers due to lower downstream consumption. The Sodium Chlorate prices in the Chinese market displayed divergent patterns. The procurement from the downstream detergent and fertilizer industry also weakened, affecting the market sentiments.
Europe’s factory order for Sodium Chlorate weakened in the fourth quarter of 2022, causing a fluctuation in the supply amid the hope of a milder recession. The demand for downstream soaps and detergents industry weakened, thus causing a sharp increase in the inventories and leading to more stockpiling of the product. The detergent demand has spiraled down with plummeting consumer spending, according to market observation. The inventories with the traders and suppliers were rising in the regional market due to lower pharmaceutical and paper consumption. Plunging in the feedstock Sodium Chloride prices relieved the cost pressure from Sodium Chloride prices.
For the Quarter Ending September 2022
In North America, traders and sellers are forced to offer their goods at lower profit margins to prevent stockpiling in the market,. The two main factors influencing this pricing change are the narrowing gap between supply and demand in the North American market and the rise in manufacturing costs because of rising energy prices and other key cost drivers in the production of Sodium Chlorate. They are combined with persistently high pricing for raw materials and commodities, wage inflation, an increasingly likely inability to pass on cost increases, and ongoing supply chain disruption. The prices fluctuated in the North American market during Q3, 2022, with costs ranging at USD 616/ton Sodium Chlorate FOB Texas (USA) as recorded by Chem Analyst pricing team data.
The prices of Sodium Chlorate saw a mixed sentiment in the Asian market during the third quarter of 2022, with the trend increasing in the Indian market and falling in the Chinese market, as per ChemAnalyst pricing team data. The prices in China were hovering at USD 665/ton FOB Qingdao during August. The manufacturing costs of Sodium chlorate in the local market have been impacted by restructuring the global energy value chain. Additionally, the Rupee's and Yuan's decline versus the USD and restrictive international monetary policies have made it economically unfeasible for domestic market actors to accept import offers.
The prices of Sodium Chlorate increased in the European market during the third quarter of 2022, with prices ranging at USD 634/ton Sodium Chlorate FD Hamburg Germany during September, as recorded by Chem Analyst pricing team data. The rising cost of raw materials forced certain manufacturers to increase the price of sodium chlorate on the market, which led to an increase in the domestic Sodium Chlorate market price at the beginning of the quarter. Overall, the need for soaps and detergents had significant downstream demand, which put cost pressure on the product in the regional market. The inventories were falling in the European region as consumption increased in the traders and the suppliers.