For the Quarter Ending March 2024
North America
The Sodium Citrate Dihydrate market in the North American region commenced the first quarter of 2024 on a downward trend but gradually recovered by mid-quarter, remaining optimistic until the quarter's end. In January, Sodium Citrate dihydrate prices followed a pessimistic trajectory due to lower demand from downstream industries, resulting in a surplus inventory among merchants. However, market demand remained steady, with regional inquiries effectively met by domestic suppliers, ensuring a balance between supply and demand and stable market transactions.
Moreover, as a major importer of Sodium Citrate Dihydrate, the USA implemented strategic pricing measures to maintain global competitiveness, resulting in worldwide price reductions, mirrored in other nations. However, this trend shifted significantly in February. Downstream merchants experienced a rebound in regional inquiries initially, with ample supplies meeting demand. However, mid-February saw production halts in primary exporting regions like Chinese provinces due to Lunar New Year celebrations. This constrained shipments and exacerbated limited inventories in the US market, further intensified by rising consumption.
Continuing the trend in March as well, the US market saw a continuous spike in Sodium Citrate Dihydrate prices which impacted both the exporting and importing regions. The surge was primarily driven by price hikes in exporting regions, driven by post-Lunar New Year production resumptions, limited inventories, and increased demand. This compelled the US market to adjust its prices to stay competitive. However, with insufficient inventories and delayed supplies, prices soared in exporting regions, prompting US buyers to make bulk orders, further driving up prices. Regarding month-over-month price changes in Q1, the analysis concludes with the final quarter's price for Sodium Citrate Dihydrate CFR Los Angeles in the USA, which was stated as USD 775/MT as of March. Inquiries from end-user preservative sectors remained high, with market transactions primarily based on long-term orders.
APAC
In Q1 2024, Sodium Citrate Dihydrate pricing in the APAC region, particularly China, exhibited an overall positive trend with minor fluctuations in January. Prices declined alongside reduced inquiries, despite ample material availability. Cost-saving measures were prioritized over expansionary initiatives, echoed in Western and Northern regions, contributing to price reductions and inventory clearance. Supporting this, was the significant drop in feed Citric acid prices which kept the overall production cost of Sodium Citrate dihydrate on the lower side. Moving into February, a significant price surge was witneseed due to rebounded demand from domestic and international markets as trading nations reopened. Suppliers strategically increased prices to optimize profit margins. However, Lunar New Year celebrations in China led to production slowdowns, and worsening supply constraints, compounded by rising freight charges ahead of the Red Sea dispute, further limiting the availability of the product and affecting the overall trade activity. While, the post-holiday market reopening saw heightened purchasing activities, driven by large procurement orders, boosting consumer confidence and driving prices upward. Market participants strategically focused on selling their goods at a higher price to improve profit margins. This trend persisted into the final weeks of March, with sustained demand from regional and overseas markets. As markets resumed operations, there was a need to replenish inventories with fresh stock. Bulk procurement fueled demand dynamics in importing nations, aided by a drop in freight costs, providing opportunities for lower-cost goods procurement. Overall, as of the end of the first quarter of 2024, the recorded price for Sodium Citrate Dihydrate FOB Shanghai in China is USD 700/MT, reflecting the stable pricing environment observed during Q1 2024.
Europe
The pricing dynamics of Sodium Citrate Dihydrate in Europe, particularly in Germany, mirrored its exporting nations' trends, notably China in the APAC region, during Q1 2024. Prices initially fell in January but steadily rebounded in February and remained on the upper side throughout March. Fluctuations in demand from industries like food, pharmaceuticals, and cosmetics influenced this trend. Global oversupply at the beginning of the quarter led to price declines, compounded by rising freight charges, affecting trade momentum. Traders focused on clearing excess stockpiles, resulting in significant price declines. Midway through the quarter, there was a notable price surge fueled by increased demand, which was met by ample inventories held by market participants. Germany, being a major importer of Sodium Citrate Dihydrate, felt the impact of price fluctuations in key exporting regions. This surge was primarily due to price hikes in exporting regions following post-Lunar New Year production resumptions in mid-February and limited inventories amid rising demand. Consequently, the German market adjusted its prices to stay competitive. With dwindling inventories and delayed supplies, prices spiked in exporting regions, leading importers to place bulk orders to secure sufficient stocks, further driving up prices in importing nations. Moreover, in March, the market witnessed eased freight costs, boosting market activity with trader actively focused on procuring the goods at lower freight charges while at the same time trading the goods at a higher cost within the market ahead of the depreciation of euro against the dollar to make up their previous profit losses. Overall, the pricing environment for Sodium Citrate Dihydrate as Q1ends for USP CFR Hamburg in Germany stands at USD 745 /MT CFR Hamburg.
For the Quarter Ending December 2023
North America
In the North American region, the pricing trajectory of Sodium Citrate Dihydrate initially experienced a significant upward trend at the onset of the fourth quarter (Q4). However, it underwent a substantial decline as mid-Q4 commenced, persisting in a pessimistic trend until the concluding weeks of December 2023. Several factors contributed to this pricing evolution. Firstly, there was a notable increase in consumer demand, leading to a surge in inquiries and purchases. This heightened demand was fueled by various factors, including a rebound in the manufacturing sector, rising inflation, and improved business confidence.
Secondly, the supply of Sodium Citrate was relatively low, both domestically and globally, resulting in a scarcity of the product on the market. This scarcity, coupled with merchants' intentions to stockpile their inventories, contributed to the upward trajectory of prices. Lastly, the cost of feedstock citric acid increased, further supporting the positive price trend for Sodium Citrate. In the USA, the pricing trend closely followed the global market, with an increase in demand and limited supply driving prices higher. However, as we progress into November 2023, Sodium Citrate Dihydrate prices experienced a substantial drop. The Purchasing Managers' Index (PMI) for the United States recorded a contraction, decreasing from 50.4 in October 2023 to 46.7 in November 2023. Additionally, the global economy encountered various challenges, including rising inflation and concerns about an imminent recession. These uncertainties prompted investors to adopt a more cautious stance, resulting in a decline in stock prices.
The return to contraction in new sales led to a slower expansion in production, further job cuts, and depletion of inventories, while input buying remained stagnant. A global downturn in downstream consumption and a reduction in new quotations from the regional market, where certain excipients may experience seasonal fluctuations in demand and prices, resulted in November potentially witnessing a lull compared to October. Supporting this observation, the market's transaction volume was small due to the limited presence of traders and goods circulating in the market. This trend persisted until the end of December 2023, with downstream inquiries consistently declining and procurement practices becoming more cautious. Market participants closely monitored the market dynamics, noting a prevailing trend where transactions predominantly leaned towards the downside, ultimately settling at USD 770/MT.
Asia Pacific
In the APAC region, the Sodium Citrate market encountered substantial price and demand fluctuations during the fourth quarter of 2023. Prices showed an upward trend at the beginning of the fourth quarter, only to decline significantly as November progressed, continuing on the weaker side until the final weeks of December 2023. As of October 2023, the FOB price negotiation for Sodium Citrate Dihydrate saw a notable increase. This substantial price surge was predominantly fueled by heightened demand from importing regions, driven by the onset of winter celebrations. The festive period led to a marked increase in beverage and processed food consumption in the food industries, thereby boosting demand in the excipient sectors. Additionally, market activity in China indicated a rise in energy and crude oil costs, subsequently elevating production and transportation expenses. This served as another contributing factor to the heightened pricing trajectory observed for Sodium Citrate Dihydrate during this period. However, moving into November 2023, the downstream sector witnessed a reduction in demand, primarily linked to subdued activity levels in the Chinese spot market. Suppliers and traders adjusted their inventory levels based on anticipated demand and market conditions. Buyers, anticipating lower demand or expecting price declines, significantly reduced their purchasing activity, further contributing to the overall decrease in demand. Additionally, according to the National Bureau of Statistics in November 2023, the official Purchasing Managers' Index (PMI) experienced a decline to 49.4, reflecting the economic slowdown's dampening effect on excipient demand. As economic activity slowed down, pharmaceutical companies scaled back production volumes to align with lower demand forecasts, resulting in a decline in the prices of various excipients. Moreover, an abundance of Sodium Citrate Dihydrate stockpiles among merchants, driven by a significant increase in production, particularly in China in the preceding month, resulted in elevated availability within the region. The values of Sodium Citrate Dihydrate continuously declined in exporting nations, supported by weakened cost support from its feedstock, the Citric Acid market, until the end of December 2023, with prices settling at USD 680/MT.
Europe
In the fourth quarter of 2023, the European market for Sodium Citrate Dihydrate witnessed several factors influencing prices. Commencing with October 2023, Germany observed a significant uptick in its prices, propelled by heightened demand from the downstream food and beverage sector. This played a pivotal role in maintaining an overall upward trend in the market. Additionally, Germany experienced a positive shift in its business climate index, which improved from 85.8 points in September to 86.9 points. Companies expressed greater satisfaction with their current business situations and displayed reduced pessimism regarding prospects. The manufacturing sector saw a slight increase in the business climate index, primarily attributed to decreased skepticism among businesses. Inflation in Germany notably decreased, reaching its lowest level since August 2021, indicating a significant cooling in headline inflation within the eurozone. The stronger euro against the US dollar resulted in cheaper imports, stimulating consumer spending and overall economic growth. This positive effect allowed German companies to sell their products at higher prices within the domestic market, thereby increasing their profits. Contrastingly, November 2023 witnessed a substantial decrease in demand, leading to a surplus of sodium citrate in the region. This oversupply intensified competition among sellers, resulting in price reductions to attract buyers. Additionally, the decline in raw material costs, specifically the cost of citric acid, played a crucial role in the reduction of Sodium Citrate Dihydrate prices. As December marked the end of the year 2023, German consumer demand presented a mixed picture. While the festive season boosted activity in specific sectors like holiday shopping and online retail, concerns about the cost of living and economic uncertainties restrained spending in other areas, including the preservatives and excipients sectors. Moving forward, consumer behavior expected to be shaped by the evolving economic landscape and inflation trends. Even Germany experienced a Technical Recession in December, as reflected in the Purchasing Managers' Index (PMI) for both manufacturing and services sectors remaining below 50. The December PMI stood at 43.3, a slight revision from the preliminary figure of 43.1, compared to 42.6 in November, indicating contraction for the sixth consecutive month.
On the upstream side, the downward trend in Citric Acid prices gained momentum towards the end of 2023 due to a sustained drop in consumption. This not only impacted production but also played a role in maintaining a weak and consolidated market, with prices settling at USD 735/MT CFR Hamburg.
For the Quarter Ending September 2023
North America
The Sodium Citrate Dihydrate market in North America, mainly in the United States, started the third quarter on a negative note and saw a positive price trajectory by the end of September. Following the previous month's market trend, the values of Sodium Citrate Dihydrate steadily fell as July got underway. A situation of oversupply in the market was caused by a sustained decline in the demand for products containing sodium citrate. Additionally, a steady increase in the upstream market maintained the southerly trading momentum and the downward purchasing momentum for downstream sodium citrate dihydrate. Furthermore, the primary reason for this fall in imports is the increased financial strain that companies are under due to growing shipping costs and other associated expenses brought on by ongoing inflation. Some businesses have cut back on their import operations due to the sluggish economic growth, raising questions about future demand. Furthermore, businesses' reluctance to build up excess inventory because of concerns about potential sales difficulties has been linked to the overall decline in trade. But as August drew near, prices began to rise, albeit at a rate that maintained the stability of the market as a whole. Nonetheless, owing to the excessive stockpile availability among the merchants, the local retailers' main goal was to increase domestic prices so they could sell their products for more money and increase their profit margins. Supporting this further is the fact that the price of the feedstock, citric acid, has remained high due to the increase in energy costs, which has increased the cost of producing citric acid overall and raised its price. This gave even more credence to the positive market prediction for Sodium Citrate Dihydrate through the last few weeks of September. As a result, Sodium Citrate Dihydrate will no longer cost $812 per MT as of September.
Asia Pacific
The first half of the third quarter of 2023 saw an ominous start to the prices of Sodium Citrate Dihydrate, with both domestic and foreign markets as inquiries continue to drop persistently. The market was uneasy due to the US and European Federal Reserve's cautious stance on prospective interest rate hikes. As a result, purchasers were reluctant to place sizable orders, which added to the general uncertainty in the market. Moreover, on the upstream front, the market of Citric Acid also plummeted at a persistent rate, which kept the overall spread chart between the upstream and downstream market on the southward side. Additionally, the Consumer Price Index (CPI) for China registered at 102.70 points, indicating a marginal decline of 0.20% compared to the preceding month of June 2023, and the NBS has linked the drop in manufacturing activity to weakening demand from both local and international customers. Notably, export sales have declined for the past three months in line with the trend of new orders, which have declined continuously for the past four months, further resulting in ongoing trade tension until July 2023. Nevertheless, as mid-Q3, or August, drew near, the prices of Sodium Citrate Dihydrate finally rose, showing a positive market trend. This was reinforced by the fact of a stable surge in consumer demand within the expected timeframe. Moreover, the cost of transporting upstream Citric acid has risen further, carrying on an upward trend. Besides this, in terms of the supply side, the accessibility was enough among the upstream market, with higher export orders presented among the traders at their ports. Overall, this upward trend continued until the month of September, and the prices were assembled at $ 710/MT in China.
Europe
The consumption of Sodium Citrate Dihydrate within downstream food and pharmaceutical industries witnessed a persistent drop in inquiries at the commencement of Q3 while improving at a modest level as August approaches. One of the main causes of the price reduction has been the decline in demand. Furthermore, in order to replenish stocks and reduce current inventories, domestic suppliers have also been encouraged to offer competitive pricing and cut costs, which has further pressured prices on the downward side. Furthermore, Germany experienced a slight decrease in its Consumer Price Index (CPI) from 6.4% in June to 6.2%. Moving towards August, a marginal rise in the prices of Sodium Citrate Dihydrate in the regional market was witnessed, successfully balanced by the overall available supplies presented among the merchants. Furthermore, a number of factors, such as the ongoing conflict in Ukraine, disruptions in the supply chain, and rising energy costs, have contributed to the increase in freight prices in Germany in recent months, along with the rising trends in upstream citric acid prices. However, This trend continued until September, with prices settling at $770/MT in Germany.
For the Quarter Ending June 2023
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
For the Quarter Ending December 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending September 2022
North America
North American Market showcased decremented pricing sentiments for Sodium Citrate during the third Quarter of 2022. The prices decreased due to weaker buying activities witnessed in the domestic market. Furthermore, with the onset of Q3 2022, the prices went down significantly owing to declined upstream Citric Acid values. Towards the mid of Q3, the prices followed the trend of the previous week, which led to stockpiling downstream Sodium Citrate with the domestic merchants. With this declining trend, the prices dropped from USD 2585 to USD 2170 /MT CFR Los Angeles in August. Moreover, with the termination of Q3, the values of Sodium Citrate followed a similar path.
Asia Pacific
In the APAC region, the prices of Sodium Citrate witnessed a declining trend throughout the third Quarter of 2022. During July, the prices went low due to the weaker downstream demand from end-user enterprises. China being the major exporter to other regions, its manufacturing activity unexpectedly retreated to a declining range in July. Manufacturing businesses, including food additives producers, continue to struggle with a lack of consumer demand which kept the market of a downstream sector on the weaker side. In mid-Q3, the Sodium Citrate prices followed similar market sentiments, and the values demonstrated were assessed at USD 1280/MT FOB Shanghai.
Europe
The Price for Sodium Citrate in the European region mimics similar market sentiments as shown in North America in Q3. Decreased consumption in the domestic market, primarily from the pharmaceutical sector, resulted in stockpiled inventories. Furthermore, in the mid-Q3, the lower upstream citric acid prices supported the market sentiments of Sodium Citrate in the domestic and regional markets. Additionally, in the last month of Q3, with weaker demand and higher stocks, the suppliers reduced their prices to maintain their profit margins and destock their inventories. Overall, the prices fell significantly and were recorded at USD 1860 /MT CFR Hamburg in mid-Q3.
