For the Quarter Ending June 2022
In the second quarter of 2022, the domestic sodium nitrate market in the US demonstrated a favourable development. The resurgence of COVID in China's commercial districts significantly worsened the flow of sodium nitrate into the US, which was already experiencing substantial port congestion. Due to several factors, including the US's skyrocketing inflation, the geopolitical upheaval in Russia and Ukraine, and the constantly shifting nature of oil prices, domestic traders and customers continued to voice their concerns about the high cost of food chemicals during the entire quarter. The downstream food and confectionary sectors in the area had sustained high demand.
The price of sodium nitrate fell substantially during the first half of the second quarter of 2022 in the Asia Pacific region before stabilizing in the second half. During the first part of the quarter, there was little demand for the product from the end-user food and beverage industries, but during H2, things got a little better. A spike in COVID cases in the major provinces of China had a detrimental impact on the supply of sodium nitrate into and out of the country, and the nation's zero-COVID policy compelled the ports to close, producing port bottlenecks. The tolerance policy continued to cause supply and manufacturing to be disrupted throughout the quarter. As a result of the restrictions, moving products across the border was also extremely difficult.
The second quarter of 2022 saw a positive trend in the sodium nitrate market of the European region. Over the quarter, offtakes in the end-user food and beverage sectors remained steady on the demand front. Local traders in the European market had a large supply of goods to match the downstream demand. Although the crisis between Russia and Ukraine largely hampered the flow of goods into Europe, exporting countries found it harder to conduct business. Due to the serious disruption of global trade caused by a lack of empty cargo containers and Russia's invasion of Ukraine, the cost of moving goods from China to Europe increased even further.
For the Quarter Ending March 2022
Sodium Nitrate prices soared in the North American market during the 1st quarter of 2022, backed by strong downstream demand. Due to the increased consumption of Sodium Nitrate in the Fertilizer industry, demand for the product escalated. Furthermore, enhanced offtakes of Sodium Nitrate from the processed food industry also propelled its prices. Meanwhile, increased prices of crude oil, increase in freight charges, and material shortage added to the already surged Sodium Nitrate price value. Hence, in USA, the CFR prices of Sodium Nitrate settled at USD 830/MT in January, which increased to USD 970/MT during the month of February.
Asia-Pacific region witnessed an upward trajectory in the prices of Sodium Nitrate during quarter 1 of 2022, on account of firm demand from end-user industries. Substantial demand for Sodium Nitrate increased during the considered period from fertilizer segment. Besides, the demand for Sodium Nitrate from the meat processing industry fuelled its prices even more. Furthermore, escalated feedstock prices soared upstream and led to the rise in Sodium Nitrate prices. In addition, consistent rise in Crude oil prices and freight charges amidst Russia-Ukraine war tensions further propelled the prices of Sodium Nitrate. Conclusively, prices of Sodium Nitrate in the Indian market were assessed at USD 1080/MT in February.
Prices of Sodium Nitrate surged in the European market during the 1st quarter of 2022 again due to the same reasons as in North America and Asia-Pacific region. The prime factor which soared the price value of Sodium Nitrate was robust demand from downstream sectors like processed food and fertilizer. Meanwhile, enhanced prices of raw material Sodium Bicarbonate also influenced the price value of Sodium Nitrate. Thus, the prices of Sodium Nitrate in Germany settled at USD 1640/MT FD Hamburg during February, which kept on propelling till March.