For the Quarter Ending March 2024
North America
The North American Sodium Gluconate market experienced a bullish trend in the first quarter of 2024, driven by expensive imports from Europe and Asia, particularly from Belgium and India. The Red Sea crises during the quarter significantly impacted product imports, leading to increased surcharges and traders opting for premium insurance.
Container shipping faced substantial disruptions, with vessels rerouting around the Cape of Good Hope to avoid Red Sea conflicts. Major ocean carriers suspended Red Sea transits, causing travel durations and freight expenses to increase notably. These disruptions, coupled with the Panama Canal drought, contributed to a surge in ocean shipment rates, with container shipping rates from Asia to Europe and North America increasing by 300%. Additionally, the global increase in feedstock Gluconic Acid prices during this period raised production costs in the region, further supporting the bullish market trend.
The downstream construction industry saw increased demand due to tight housing supply in the USA, evidenced by significant shortages in housing units for sale. Despite a slight dip in multi-family housing project outlays in February, likely due to backlog management, construction companies played a pivotal role in bolstering the US job market, adding 39,000 jobs in March. Concurrently, the unemployment rate dropped to 3.8%, with over 400,000 individuals joining or rejoining the workforce, reflecting positive economic dynamics in North America during Q1 2024.
APAC
Sodium Gluconate pricing in the APAC region for Q1 2024 has been influenced by several significant factors. Overall, the market has experienced a positive price trend, driven by factors such as increased feedstock costs, tight supply conditions, and strong demand from the construction industry. In China, the largest market for Sodium Gluconate in the region, prices have seen the maximum price changes. The market has witnessed a bullish trend, with prices increasing consistently throughout the quarter. This can be attributed to the rise in feedstock costs, particularly Gluconic Acid, which has directly impacted the production expenses for Sodium Gluconate. Additionally, the global surge in freight rates has further contributed to the price increase in the Chinese market. Seasonality has also played a role in the price changes, with demand from the construction industry being affected by adverse weather conditions, particularly during the winter season. However, overall demand has remained stable, supported by the government's initiatives to stimulate the construction sector. In terms of price comparisons, the first half of the quarter has seen a slight increase in prices compared to the second half. This can be attributed to the tight supply conditions and increased feedstock costs that were more pronounced in the early part of the quarter. To conclude, the pricing environment for Sodium Gluconate in the APAC region, particularly in China, has been positive in Q1 2024. Prices have been driven by factors such as increased feedstock costs, tight supply, and stable demand from the construction industry. The latest quarter-ending price for Sodium Gluconate FOB Qingdao in China is USD 551/MT.
Europe
During Q1 2024, the European Sodium Gluconate market saw a bullish trend, especially in Belgium, a key exporting country in the region. Overseas demand for the product increased due to uncertainties in trade routes. Disruptions to global trade, such as the Houthi campaign against shipping in the Red Sea, impacted retailers in the UK, with container shipping prices soaring by up to 300% and goods experiencing delays of up to a month. This led to supply shortages of Sodium Gluconate and cash flow challenges in the European market. Additionally, rising feedstock costs, particularly for Gluconic Acid, directly affected production expenses for Sodium Gluconate. However, the downstream construction industry did not perform well during this quarter, with real estate deals in Europe experiencing their highest number of failures since the global financial crisis, attributed to ongoing economic uncertainties in the region. Despite challenges, the European Sodium Gluconate market remained resilient, driven by increased overseas demand and supply chain disruptions. Ongoing economic uncertainties posed challenges to the downstream construction sector, impacting the overall market dynamics in Q1 2024.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Sodium Gluconate market experienced a notable decline in prices. This downturn was influenced by subdued demand from the downstream construction sectors and abundant supplies.
In the USA, the limited demand for Sodium Gluconate was attributed to a sluggish economic recovery and stagnant trading conditions in the construction segment. In anticipation of a potential price increase due to new import tariffs, buyers temporarily halted their purchasing activities during this period. Additionally, global factors, such as the Russia-Ukraine war and a drought affecting the Panama Canal, added complexity to international container logistics in the USA during the concluding quarter of the year.
Facing a substantial decline in spot export prices compared to contracted prices, US buyers are actively engaging in discussions regarding potential reductions in contracted Sodium Gluconate prices. The disruptions in US shipping caused by Panama Canal issues, coupled with the ongoing decline in crude oil values, further influenced the pricing dynamics in the North American Sodium Gluconate market.
APAC
The fourth quarter of 2023 was challenging for the Sodium Gluconate market in the APAC region as this period experienced a bearish trend, primarily driven by low demand from the downstream sectors such as construction, textile, and food and beverages industries. The economic slowdown in China, one of the major consumers of Sodium Gluconate, further contributed to the subdued demand. The presence of ample product availability in the region also led to a downward shift in prices. The market saw no plant shutdowns during this quarter. Within the APAC region, China witnessed the most significant changes in Sodium Gluconate prices. The country experienced a price decline of 7% during this quarter compared to the previous quarter. The weak economic fundamentals and muted demand sentiments in China impacted the market negatively. The construction sector, which is a major consumer of Sodium Gluconate, remained bearish, leading to low demand. Despite an improvement in the manufacturing PMI, the overall demand for Sodium Gluconate remained low. The quarter ended with a price of USD 522/MT FOB Qingdao for Sodium Gluconate in China.
Europe
The Sodium Gluconate market in Europe faced considerable challenges in the fourth quarter of 2023, resulting in notable fluctuations in prices. A key contributing factor was the sluggish activity in the downstream construction industry, creating a bearish trend for Sodium Gluconate in December 2023. Adequate inventories further exerted negative pressure on prices. High input costs, supply shortages, and destocking sentiments among market players also played a significant role in dampening price momentum during November and December 2023. Germany experienced substantial price changes, reflecting a bearish trend throughout most of the year. Despite attempts to protect profit margins by reducing operating rates, suppliers struggled to boost margins due to intense competition from the import market. Despite production cutbacks, Sodium Gluconate supplies faced persistent challenges due to low demand in the fourth quarter of 2023. Interestingly, the European Sodium Gluconate market outperformed its global counterparts, prompting import suppliers to redirect shipments to the region amidst the global market downturn in November 2023.
For the Quarter Ending September 2023
North America
The assessment of the US Sodium Gluconate market reveals a decline in prices during the initial half of the quarter, primarily due to a persistent lack of demand from the domestic construction sector. Notably, the demand fundamentals for this product have remained subdued during this period. While there has been a modest improvement in the downstream construction sector in the course of the quarter, the sector's potential for growth has been hindered by an extended labor shortage within the country. It is worth noting that the prices of most construction-related raw materials have exhibited a consistent upward trend in the market, making Sodium Gluconate an exception to this general pattern. Nevertheless, it is important to highlight that there has been an overall recovery, with the Producer Price Index (PPI) for Cement and Concrete Product Manufacturing rising from 235.094 in July to 235.795 in August, as reported by FRED. In the latter part of the third quarter of 2023, the US Sodium Gluconate market has experienced price stability. This can be primarily attributed to sustained demand from the downstream construction sector, further bolstered by a consistent domestic supply of Sodium Gluconate throughout the month.
Asia
Sodium Gluconate market observed a mixed market situation throughout the third quarter of 2023 on the back of changing market fundamentals and minor disturbances in supply chain. Prices remained low during the first half of the quarter due to low demand from the Asian market under the influence of seasonal lull. However, Sodium Gluconate prices have observed a significant rise during the second half of the quarter in the Chinese market on the back of rising imports queries amidst partial improvement in domestic consumption. Since the Chinese construction sector is striving for rebound for a long time, traders have been cautious with the price trend. Further, according to the data released by NBS China, PMI improved from 49.3 (July) to 49.7 (August), supporting the price uptrend. Further, demand from the other Asian countries like India remained seasonally firm, supporting this price trend. Additionally, monsoon season in the country and flood situation in several parts of China has also induced supply disturbances and supported the significant rise in prices during H2 of Q3 2023.
Europe
Sodium Gluconate prices within the European market recorded a decline in the months of July and August. This price downturn was primarily attributed to the subdued economic prospects coupled with a lackluster demand in the market. A notable cement manufacturer in Europe, "Buzzi SpA," reported a decline in demand during the initial half of 2023 and anticipates a continued period of sluggishness for the latter half of the year. These factors collectively weighed on market sentiment for construction-related raw materials across Europe. Nevertheless, it is noteworthy that industrial activities within the region demonstrated resilience during this timeframe. As indicated by Eurostat, the Industrial Production Index, which stood at -1.3% in July, showed an improvement to 0.6% in August 2023. On the other hand, regional economic activities, particularly in Germany, remained relatively stable to subdued throughout this period. Data released by Deutsche Bundesbank Eurosystem revealed that producer prices of industrial products sold on the domestic market held steady at 147.1 in September after a revision from 147 in July.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the US Sodium Gluconate prices showed an overall declining trend, despite an initial price increase in April. During the first month of the quarter, the price of Sodium Gluconate rose in the US market as local mills maintained a high base price, positively impacting the market sentiment for domestic and overseas buyers. The reduced delivery time also contributed to a decline in local inventory levels, leading to an increase in the price of Sodium Gluconate in the US spot market. However, in the latter half of the quarter, market sentiment for Sodium Gluconate declined due to economic instability caused by the debt crisis resulting from the failure of major banks across the USA. The inflation rate rose, and the US Federal Reserve hiked interest rates, further impacting buyer confidence and leading to a sluggish US Sodium Gluconate spot market. The decline in employment rates also affected the downstream US and infrastructural sectors, resulting in decreased demand for Sodium Gluconate in the US spot market. The local inventory levels remained high, leading the US government to impose countervailing duties on imports of Sodium Gluconate from overseas Indian and European suppliers. At the end of the quarter, the US government signed a deal to extend the debt crisis, raising hopes for the upliftment of the US Sodium Gluconate market in the upcoming quarter.
APAC
During the second quarter of 2023, the Asian Sodium Gluconate market experienced a bearish trend primarily due to decreased demand from the downstream printing and metal treatment industry. The product prices declined by approximately 1.7%, 5.3%, and 2.0% in April, May, and June 2023, respectively. Similarly, in the Indian market, the price of Sodium Gluconate also decreased by around 4.2%, 4.5%, and 3.4%. Inflationary pressure led to increased production costs and a subsequent decrease in demand for the product in the Asian market. Despite sufficient supply in the domestic market, high inventories at the port led to selling the product at cheaper rates to alleviate pressure. The Chinese economy did not perform well during this quarter, with purchasing activity remaining low as consumers focused on essential goods. The Gross Domestic Product (GDP) grew at a slower-than-expected rate of 6.3% compared to the previous year. At the end of the quarter, the price of Sodium Gluconate FOB Qingdao (China) stood at USD 530/MT.
Europe
In the second quarter, the price of Sodium Gluconate in the European region initially increased but later experienced an overall decline in the latter half of the quarter. In April 2023, the price surged in the European market due to a significant growth rate in the downstream automotive industry, which drove sufficient demand. However, in the second half of the quarter, the economic downturn in the global market negatively affected the market sentiment for Sodium Gluconate in Europe. A labor shortage across the European region impacted construction projects, leading to reduced consumption of Sodium Gluconate and higher inventory levels in the European spot market. Moreover, the automobile industry declined as the European Union imposed dumping duties on imported Sodium Gluconate from overseas Chinese and Indian markets during this period. Additionally, the plans of the Italian government to increase interest rates resulted in hesitancy from buyers and led Italian steel mills to decrease their offer price in the latter part of the quarter.
For the Quarter Ending March 2023
North America
Throughout the first quarter of 2023, demand for Sodium Gluconate in North America was moderate to low. The slow economic activity, coupled with uninterrupted production, contributed to this demand trend. The construction sector experienced a marginal improvement by the end of the quarter, but it remained below expectations due to prolonged inflationary pressure. Moreover, the FED's frequent price revisions for domestic interest rates were adding to concerns about the country's economy and impacting the demand for the product. Further, labor shortage also restricted the actual growth in demand from the downstream industries.
Asia
In March 2023, the demand for products in India and China increased due to the seasonal demand surge and optimism about economic recovery. This resulted in a bullish market with moderate to high demand and stable supply in India, while in China, the market was bearish with low demand, stable supply, and prices on a downtrend due to the underwhelming economic recovery after the Lunar festival. In February 2023, both countries experienced a rise in demand from downstream industries, with stable supply and moderate demand in India, while China had stable supply with low demand, resulting in a bearish market.
Europe
The European economy has been underperforming due to the Russia-Ukraine war, which has put pressure on regional economic activities. As per data, demand for Sodium Gluconate from the domestic automotive sector has remained low, while other sectors, such as food & beverages and textiles, have also experienced seasonal lows. Despite some disruptions in the supply chain caused by snow, supplies remained stable to firm, and the narrow demand-supply gap supported a downward price trend. The reduced risk of a recession generated hope for future demand.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the Sodium Gluconate market in the North American region displayed conflicting sentiments. Prior to dropping at the end of the quarter, the prices of Sodium Gluconate rose slightly during the first half of the quarter. The market price of Sodium Gluconate changed due to fluctuations in downstream demand from various businesses. Hence, due to shifting market conditions in the downstream textile and cleaning industries, sodium gluconate offtake remained unstable. Furthermore, the market price for Sodium Gluconate was also affected by manufacturing and upstream costs unsteadiness, which caused instability in the supply side of the market.
APAC
The Sodium Gluconate market showcased mixed sentiments in the Asia-Pacific region during the fourth quarter of 2022. Its value increased marginally in the first half of the quarter before declining towards the end of the quarter. Downstream demand from different industries fluctuated, resulting in changes in the market price of Sodium Gluconate. Sodium Gluconate offtake remained weak due to changing market conditions in the downstream textile and cleaning sectors. Upstream costs and manufacturing price inconsistency also impacted the overall price of the sodium gluconate market. Therefore, the assessed price of sodium gluconate in China in December was USD 620/MT FOB Qingdao.
Europe
Resembling North American and APAC markets, the Sodium Gluconate market in Europe showed mixed sentiments in the fourth quarter of 2022. The value of Sodium Gluconate increased somewhat throughout the first part of the quarter before declining towards the end. Because of variations in downstream demand from various industries, the market price of Sodium Gluconate fluctuated. Sodium gluconate offtake remained unstable because of altering market conditions in the downstream textile and cleaning industries. Additionally, the market price for Sodium Gluconate was impacted by fluctuating manufacturing and upstream costs, which contributed to the supply-side market inconsistency.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the price value for Sodium Gluconate in the North American market changed due to fluctuating feedstock costs. Prices for Sodium Gluconate began to grow in July before abruptly falling in August and then beginning to rise once again in September. Due to fluctuations in feedstock market prices over the quarter, the market value of sodium gluconate on the domestic market altered. Even though prices rose in July and September, the downstream demand from the paints and varnishes sectors sharply decreased in August. This led to similar outcomes in the market for sodium gluconate emotion.
APAC
Due to fluctuating feedstock costs, the price of Sodium Gluconate in the Asia-Pacific region changed in the third quarter of 2022. Prices for Sodium Gluconate began to grow in July, but they then abruptly decreased in August before rising again in September. Because of changes in the price of feedstock during the quarter, the market value of Sodium Gluconate in the domestic market altered. The downstream demand from the paints and varnishes industries decreased sharply in August despite price increases in July and September. As a result, sodium gluconate's market sentiment displayed comparable outcomes. Hence, the assessed price value of Sodium Gluconate was USD 820.71/MT Ex-Mumbai (India) during September.
Europe
The price of sodium gluconate in the European region was unsteady in the third quarter of 2022 as a result of shifting feedstock costs. Prices for Sodium Gluconate initially started to increase in July, but they then unexpectedly started to decline in August before starting to increase once more in September. The market value of sodium gluconate in the domestic market changed due to variations in feedstock prices during the quarter. Despite price rises in July and September, the downstream demand from the paints and varnishes sectors fell significantly in August. As a result, the market sentiment for Sodium Gluconate showed similar results.
For the Quarter Ending June 2022
North America
Sodium Gluconate prices in North America increased throughout the second quarter of 2022 due to the higher feedstock prices. Because of supply problems, the market value of Gluconic Acid as a raw material rose during the quarter, driving upstream costs for the manufacturing of Sodium Gluconate and resulting in a spike in its price. The increasing demand from various downstream industries such as textile dyeing, metal printing, and metal surface water treatment has also increased Sodium Gluconate's price. Rising energy prices, higher freight costs, and backed-up ports owing to the tensions surrounding the Russia-Ukraine war all contributed to an increase in the price of Sodium Gluconate.
APAC
During the second quarter of 2022, Sodium Gluconate price value in the Asia-Pacific area revealed conflicting sentiments, supported by shifting feedstock prices. The sodium Gluconate pricing pattern, which was increasing in April, abruptly decreased in May and kept going down until June. Sodium Gluconate's value in the domestic market fluctuated due to the market value of the feedstock Gluconic Acid, which caused the upstream cost to remain unstable throughout the quarter. Additionally, the downstream demand from the textile dyeing, metal printing, and metal surface water treatment sectors, which had been climbing until April, abruptly began falling in May and June, which caused the market attitude toward Sodium Gluconate to move in the same direction.
Europe
In contrast to North America, prices for Sodium Gluconate steadily dropped in Europe during the second quarter of 2022. This reduction was mainly caused by weak end-user demand from the textile dyeing, metal printing, and surface water treatment sectors. Due to slow consumer expenditure, the market value of Sodium Gluconate decreased. The prices of Sodium Gluconate in the European market were also absurdly low due to the abundance of excess inventory in the retailers and the constant supply rate. The primary causes of the declining price value of Sodium Gluconate in the domestic market were weak offtake and continuous supply flow.
