For the Quarter Ending June 2021
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.
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.
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
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.
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.
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
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.
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.
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.