For the Quarter Ending June 2022
North America
The demand for Sodium Nitrite surged, backed by the high inflation rate in the US market due to the War, which caused an upward trend in the prices of Sodium Nitrite throughout Q2-2022. Sodium Nitrite inquiries had been consistently increasing from the food preservatives and pharmaceutical industries. As a ripple effect, prices of Sodium Nitrite saw a rise with active demand from the downstream sectors. In the USA market, Force Majeure at primary Chlor Alkali chemical plants such as Olin and Westlake in the US system crippled the availability of raw materials such as Sodium Hydroxide, which conclusively impacted the price movement of Sodium Nitrite in the North American region. Sodium Nitrite prices showed an overall surge of 3% in this quarter in the USA in the month of June.
APAC
Sodium Nitrite prices showcased an upward trend throughout Q2 2022 due to the firm demand from the downstream food preservatives and pharmaceuticals amidst heat waves in Asian countries and fear of COVID 19 pandemic. Moreover, a significant rise in the energy prices caused upward pressure on the input costs for the products and enterprises indulged in passing the cost burden to the consumers to sustain maximum profit margins. Demand enhanced as the quarter concluded, backed by the high inflation rate due to War and supply disruptions from China amidst lockdown restrictions. Sodium nitrite prices maintained a rising trajectory in the second quarter of 2022.
Europe
Sodium Nitrite supplies remained tight throughout Q2 of 2022 due to a consistent increase in transportation costs amidst high inflation rates. The conflict between Russia and Ukraine resulted in production cuts and high energy values in the European region. In addition, high raw material Sodium hydroxide costs impacted the price movement of Sodium Nitrite in the regional market. Demand from food preservative and pharmaceuticals industries increased after commercial and business activities resumption, resulting in consistency in Sodium Nitrite's offtakes since the first quarter. The price of Sodium Nitrite showed an inclination of nearly 2% in Germany in June.
For Quarter Ending March 2022
North America
The demand for Sodium Nitrite surged throughout diverse sectors, which caused an upward thrust in the prices of Sodium Nitrite in Q1-2022. Sodium Nitrite inquiries have remained steady from the food preservatives and pharmaceutical industries in Asia. As a ripple effect, prices of Sodium Nitrite witnessed a rise with active demand from the downstream sectors. In the US market, supplies were balanced due to higher inventory levels to fulfill the growing inquiries. Prices of Sodium Nitrite were assessed at USD 1070/MT CFR-US Gulf in the USA in the month of March.
Asia Pacific
Sodium Nitrite prices showcased strong sentiments throughout Q1 2022 due to the firm demand from the downstream food preservatives and pharmaceuticals amidst resurgence of Covid 19 in several Asian countries. However, significant demand drop was observed in February, but demand accelerated as the quarter concluded, backed by the strong demand in the downstream industries. Moreover, Sodium Nitrite prices showed a surge due to the increased inflation in the Chinese market amid production cuts as a result of strict covid restrictions. Prices of Sodium Nitrite were assessed at USD 630/MT EXW Qingdao in China.
Europe
Sodium Nitrite supplies remained tight throughout Q1 of 2022 due to consistent rise in freight charges amidst container shortage. The conflict between Russia and Ukraine resulted in production cuts and extended energy crisis in the European region. Demand from rubber and dye industry surged after the resumption of commercial and business activities, which led to the increase in the offtakes of Sodium Nitrite throughout the quarter. Prices of Sodium Nitrite were assessed at USD 1030/MT CFR Hamburg in Germany in the month of March.
For the Quarter Ending December 2021
North America
Sodium Nitrite market outlook in North America remained firm backed by the consistent demand from the domestic as well as overseas market. As Sodium Nitrite demand remains nearly same across the year, limited availability of its raw material led to the continuous surge in its prices. Production rates in USA remained optimum in lieu of the favorable demand from the food and preservative sector in the holiday season. Sodium Nitrite prices after following an upward curve for the three consecutive months reaching USD 980 per MT in December.
Asia Pacific
In the Asia Pacific region, market dynamics of Sodium Nitrite remained mixed during the fourth quarter of 2021. Disturbed production activities in China largely benefited Indian key players of specialty chemicals. A market respondent revealed that they witnessed great demand for Sodium Nitrite in the Indian market, as imports were either halted or getting delayed. Thus, Sodium Nitrite cost increased rapidly in October on the back of high demand and larger demand supply gap. However, by late-December prices largely stabilized as the operating rates in China reached normalcy. Sodium Nitrite prices in December thus eased and settled at USD 980 per MT Ex-Mumbai.
Europe
In Europe, Sodium Nitrite market remained firm during the fourth quarter of 2021 owing to the reduced plant operating rates due to the extended energy crises. Although the demand for the product in the regional market remained firm from the food and preservative sector. However, as the freight rates gradually eased in Q4 they restricted any steep hike in the prices of the product. By the end of the quarter, prices of the product also eased following the normalcy in the availability of cargoes.
For the Quarter Ending September 2021
North America
In Q3 2021, Sodium Nitrite market outlook appeared strong backed by the improved demand from the domestic as well as overseas market. Moreover, spike in the prices of raw materials also contributed to the hike in the pricing trend of Sodium Nitrite. Furthermore, production levels remained low during the mid of the quarter because of the severe climatic condition in the USA which directly impacted the regional as well as global market dynamics in this quarter.
Asia Pacific
In the Asia Pacific region, market dynamics of Sodium Nitrite varied from country to country during the third quarter of 2021. In India, an overall surge in the prices of Sodium Nitrite was observed following the spike in the feedstock values as well as the constraint availability. In India, Sodium Nitrite is primarily imported by China, thus, a proliferative trajectory in prices in the product was seen. Factors such as the lower production rates in China due to power deficit conditions as well as delayed imports due to the congestion on several ports of China contributed to the pricing trend of Sodium Nitrite in India. Moreover, firm demand from the food and beverage industry and high freight charges also supported the hike in the prices of Sodium Nitrite in this quarter. However, in September, a slight dip in the values of Sodium Nitrite was seen backed by adequate supplies after the ease in the trade dynamics. Ex-Mumbai, monthly average prices of Sodium Nitrite were accessed at USD 794.20 per MT in September showcasing a significant hike since July.
Europe
In Europe, Sodium Nitrite market remained firm during the third quarter of 2021 backed by the sturdy demand from the downstream sectors including textiles and food preservatives. Moreover, tightened supply of the raw materials and the hike in their prices further led to the increment in the values of Sodium Nitrite in Q3. Besides, an improvement in the offtakes from the downstream manufacturers was also witnessed in this timeframe after the revival in the market activities. In addition, soaring freight costs further sent ripples to the values of Sodium Nitrite in Europe.
For the Quarter Ending June 2021
North America
In the second quarter of 2021, demand of the Sodium Nitrite surged across various sectors. The restoration of the industrial infrastructure in the US Gulf coast improved the supply chain of various commodities. Sodium Nitrite enquiries were consistent from the food additives and pharmaceutical industries and as a ripple effect, the prices of got the significant support and discussion at FOB Texas were assessed at USD 625 per tonne in April. In the US market, supply was balanced as the operating levels remain sufficient to meet the rising enquiries, along with a strong restocking sentiment ahead of the upcoming hurricane season in US.
Asia Pacific
Despite the second COVID wave in India the supply of the Sodium Nitrite remained firm in the Indian market during the second quarter of 2021. Consumption remained healthy with consistent intakes from the downstream manufacturing industries. Demand remained stable from the downstream food preservatives and pharmaceutical industry. However, significant demand drop was observed in May, but demand accelerated as the quarter concluded. In China, the pricing trend observed a multi-fold hike due to the rising inflation rate in the Chinese domestic market. Ex-Work Qingdao discussions were assessed at USD 725 per tonne in June.
Europe
Sodium Nitrite supply-demand fundamentals were balanced during the second quarter of 2021. This was epitomized by the stable pricing for Sodium Nitrite throughout the quarter. Production rates improved with increased feedstock availability as the quarter progressed. Demand numbers remained healthy as the consumption volumes from downstream food preservative and pharmaceuticals industries stayed consistent with marginal growth. Furthermore, demand growth has been due to the effective mass vaccination programmes which boosted the economic growth and therefore realized in improved intake numbers.
For the Quarter Ending March 2021
North America
Sodium Nitrite supplies in the North American region were tight during the first quarter of 2021, due to restricted availability of the key upstream raw material as the rare climate calamity disrupted the production activity across the region in Q1. Enquiries improved amidst improved demand from the dye manufacturer and ample consumption from the food additive and pharmaceutical industries. Critical shortage of the feedstock due to several shutdowns supported the price uptrend with CFR New York prices for Sodium Nitrite in March is USD 740 per tonne.
Asia-Pacific (APAC)
Strong demand during the first quarter of 2021 was buoyed by constant offtakes from the downstream dyes, and food preservatives industries despite slowdown in market activities as the second wave of COVID hit several nations towards the end of the quarter. Global supply disruptions served as tailwind for regional manufacturers amid consistent demand for Sodium Nitrite from pharma industries. Sodium Nitrite imports in India on account of the unprecedented supply chain disruptions caused due to macroeconomic factors and surging freight charges. Market offers were firm throughout the quarter with price of Sodium Nitrite assessed around USD 761 per tonne for March deliveries.
Europe
The European region encountered a steep rise in the prices of Sodium Nitrite during the first quarter of 2021, amid curtailed supplies due to the reduced imports from the USA. Shutdown of a key raw material facility in the Germany declared prompted shortages in the second half of the quarter followed by the transportation lag in the Antwerp-Rotterdam–Amsterdam route which further diminished the product inventories. Demand however surged as the offtakes were improved from the downstream segments during Q1.
For the Quarter Ending December 2020
Asia
During the fourth quarter of 2020, in the initial days’ supply remained sufficient but by the end of quarter the supplies were getting tighter, due to an upward market price trend. The demand from downstream sectors like food and beverages surged as the major economies in the region started to recover after restrictions were eased. Prices of upstream products and feedstocks were temporarily stable, which brought certain positive support to the price of Sodium Nitrite in the region. Due to the healthy demand against tighter supply, CFR China Sodium Nitrite prices were assessed at USD 700 per tonne levels in mid-December, whereas in India prices averaged at USD 697/tonne throughput the quarter.
Europe
Sodium Nitrite supplies remained tight throughout Q4 of 2020 due to consistent increase in freight charges amidst container shortage. The prolonged supply shortage was further exacerbated by the scheduled turnaround at the BASF plant in Antwerp Belgium. Demand from the rubber and dye industries improved after the resumption of industrial and commercial activities, which led to the improvisation on the consumption of Sodium Nitrate, throughout the quarter.
North America
The supplies improved during the Q4 with consistent improvement in demand from the paints and coating sector. Besides, continuous increment in the prices of feedstock, particularly Ammonia, led to the uptrend in the prices of Sodium Nitrite in US, during the second half of the final quarter of 2020. Furthermore, the demand surged with persistent rise in consumption from the pharmaceutical and food & beverages industry followed by the recovery in export potential.
