For the Quarter Ending June 2023
The prices of Sodium Citrate Dihydrate plummeted across the North American region throughout the second quarter of 2023. The prices recorded dropped by more than 31 percent within Q2-2023. One of the primary reasons for this decline in its prices includes an incessant dip in its upstream Citric Acid prices since the end of the first quarter. However, fragile offtakes from end-user sectors kept the upstream Citric Acid market moving on the negative side, further keeping the prices of downstream Sodium Citrate Dihydrate prices on the lower side. In addition, since the beginning of the second quarter, the ongoing US economic instability and the mounting global inflation rate have diminished the demand and ultimately decreased the price of Sodium Citrate dehydrate across the region. Apart from that, according to market players, the availability of Sodium Citrate Dihydrate was more than enough, and the inquiries dropped consistently. This, in turn, compelled the merchants to reduce their stocks at discounted rates. However, as June concludes, considering the consumer price index (CPI) for June 2023 in North America, mainly in the United States, it grew by 0.1% in June 2023 compared to May, with domestic suppliers of Sodium Citrate Dihydrate having sufficient inventory to satisfy nearby interest throughout the second quarter of 2023. However, in June, Sodium Citrate Dihydrate costs across the region stood at USD 855 /MT CFR Los Angeles.
Throughout the second quarter of 2023, Sodium Citrate Dihydrate prices dropped considerably across the whole APAC region. Although China is one of the main producers and exporters of Sodium Citrate Dihydrate, the demand for Sodium Citrate Dihydrate from the downstream food and pharmaceutical sector reduced at the beginning of April as abundant stock availability and fewer market inquiries by the main manufacturers and suppliers which dominated the market, kept its prices on the downward side. The market was quiet in May also, and there were fewer trading activities reported between buyers and suppliers. In addition, moving towards the termination of the second quarter, China's factory activity decreased in June amid a decrease in export orders from the international market, according to a government survey that confirmed weak supply-demand activity, which further added stress to an already weak economy. However, the manufacturing units also operated at a modest pace, and the upstream citric acid cost was poor, contributing to the negative price trend. Overall, the international inquiries were cold and quiet, the transaction was light, and the export momentum continued to remain weak. As a result, the price of Sodium Citrate Dihydrate at the end of June stood at USD 740 / MT FOB Shanghai in China.
Across the European market, the prices of Sodium Citrate Dihydrate Continue to witness weaker market sentiments by the end of the first quarter of 2023. The abundant availability of Sodium Citrate Dihydrate stocks among domestic suppliers and retailers, coupled with weakened inquiries from both the domestic as well as international markets, kept the prices of Sodium Citrate Dihydrate on the south side. Moreover, upstream Citric Acid cost continued to depict its weaker pricing sentiments since the beginning of the second quarter. This further kept the market of its downstream Sodium Citrate Dihydrate on the weaker side. As per the market analyst, the prices of Sodium Citrate Dihydrate, when compared to the previous quarter, declined by around more than 10 percent in the whole of Q2 across the German market. Due to this significant decrease in its price, the buyers were additionally reluctant to place large orders. On top of that, because of the onset of seasonal changes, the restocking process was stopped due to the increased risk of damage to excipients. Overall, with this, the prices for Sodium Citrate Dihydrate, a Pharmaceutical Excipient in Germany, were assessed at USD 810/MT CFR Hamburg in the final weeks of June.
For the Quarter Ending March 2023
In the first quarter of 2023, the Sodium Citrate Dihydrate market prices demonstrate an increment trend in the North American region. During the start of Q1, prices surged by around 4 percent, supported by significant surge in downstream inquiries and surge in demand from the pharmaceutical and food sectors. Additionally, after the end of New Year's festivities, market participants focused on placing fresh orders and increased the prices for remaining supplies in the domestic market. Besides this, imports from China surged considerably, which additionally kept the prices on the upper end. With this, the prices recorded during the month of February were settled at USD 1245/MT CFR Los Angeles.
The Sodium Citrate prices throughout the first quarter of 2023 in the Asia Pacific region, primarily in China, demonstrate an upward trajectory. This price trend was attributed to a sudden rise in inquiries from international and domestic markets. As with the start of 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. Furthermore, the Chinese markets remained optimistic in accordance with the improved trade activity and demand dynamics over the course of the month. The increase in container logistics indicates that the downward trend has finally come to a halt, which is promising for many players who export to foreign markets as production has started to rise considerably. At the termination of Q1 2023, the price for Sodium Citrate Dihydrate was recorded at USD 855/MT FOB Shanghai during February.
In the European region, the prices of Sodium Citrate Dihydrate mimic the trend of China during the first quarter of 2023. At the beginning of the first month of Q1, the prices witnessed an increment of 6 percent due to a sudden surge in inquiries from customers coupled with moderate stocks. Ease in trade activity, along with a slowdown in inflation, further influenced the overall market trend throughout Q1. However, orders from end-user industries remained on the upper side until the end of Q1, keeping demand strong and propelling the traders and local merchants to maintain their shelves. With this, the prices for Sodium Citrate Dihydrate during the month of February were recorded at USD 1345/MT CFR Hamburg.
North American Market displayed consistent dwindling pricing sentiments for Sodium Citrate dihydrate throughout the final Quarter of 2022. With the start of the fourth quarter, market players continue to keep a close eye on numerous factors that have impacted the market of almost all the commodities, including Sodium Citrate Dihydrate throughout the year. Inflation remained very high in October 2022. In order to bring it somewhat down at a normal pace, many market vendors attempted to boost their sales by providing discounts to destock their stored-up inventories. Until the end of December, the price of Sodium Citrate Dihydrate remained weak, backed by a continued decline in the price of its upstream feed, Citric Acid. Prices fell from USD 1240 to USD 1165 MT CFR in Los Angeles in December due to this declining trend.
The prices of Sodium Citrate Dihydrate in the Asia Pacific region, primarily in China, demonstrated a significant dip throughout the last Quarter of 2022. This price trend was supported by zero-COVID policies and travel restrictions in almost every part of the Chinese economy. China’s mainly faced challenge was coping with clogged logistics on the main trade lanes to North America and Europe as the exports of all the commodities, including Sodium Citrate Dihydrate, were restricted. Furthermore, decremented upstream feed Citric Acid costs and demand from the Food & Pharmaceutical sectors kept prices on the lower side. At the end of the fourth Quarter of 2022, the price of Sodium Citrate Dihydrate dropped by around USD 800/MT FOB Shanghai.
The European region witnessed a similar market sentiment for Sodium Citrate Dihydrate as the United States. The prices of Sodium Citrate Dihydrate demonstrated a dip of 3.15 percent in the month of December, with the settlement at USD 1230/MT CFR Hamburg. Despite the fact that trade flows have partially resumed in Germany and the rest of the Eurozone due to some breathing room, this does not indicate a stable set of market fundamentals, as the inventories of Sodium Citrate Dihydrate remained on the higher side within the domestic market. However, the demand for goods and services from the end-user industry remained sluggish for some time, given the current economic challenges. On top of that, the upstream citric acid cost additionally kept the price of Sodium Citrate Dihydrate on the lower side throughout the fourth Quarter.