For the Quarter Ending December 2022
North America
The North American market witnessed an upsurge in the prices of Sodium Propionate during the first quarter of 2022. As Sodium Propionate is mainly being used in the pharmaceutical industry owing to its anti-bacterial and anti-mould properties. Pharma industry is also growing, contributing to the increased prices of Sodium Propionate. Furthermore, due to changing lifestyles and rising urbanization, the need for processed and ready-to-eat food has increased, leading to higher demand for food additives like Sodium Propionate. Besides, the surging upstream cost is another factor contributing to the price hike of Sodium Propionate. In addition, the continued port congestions, labour shortages, enhanced logistic charges, and crude oil prices further propelled the Sodium Propionate prices. The evaluated prices of Sodium Propionate in the USA were USD 2480/MT FOB Illinois in March.
Asia Pacific
In the Asia-Pacific region, the prices of Sodium propionate showcased an upward trajectory in Q1 of 2022, backed by firm downstream demand and increased feedstock prices. As meat production has been rising in developing countries, the consumption of Sodium Propionate has increased in meat processing industries. Furthermore, the fast-moving lifestyle has soared the need for packaged food with better shelf-life, consequently increasing the prices of Sodium Propionate. Additionally, the skyrocketing crude oil prices and freight charges, along with the shortage of cargoes and port congestions, surged the prices of Sodium Propionate in the domestic market. In March, the Sodium Propionate prices in India were assessed at USD 2468/MT.
Europe
In Europe, the prices of Sodium Propionate propelled in the domestic market during the quarter 1st of 2022 by nearly 3%, on account of raised consumption and increased production cost. The offtake of convenient food and processed food has grown in European countries owing to a busy lifestyle. Also, the prices of the raw materials rose, consequently causing higher production costs and hence surged product prices. Furthermore, continued conflict between Russia and Ukraine resulted in amplified crude oil prices and augmented logistic charges, severely contributing to the price hike of Sodium Propionate. The shortage of shipment containers and congested ports further added to the already enhanced price value of Sodium Propionate.
For the Quarter Ending December 2021
North America
The prices of Sodium Propionate remained strong in the US domestic market on the back of the consistent demand from the downstream industries, including cosmetics, food and beverages, and others. The increased cost of upstream Propionic acid, high energy prices, prolonged supply disruptions, soaring freight charges, transport issues, and the Omicron spread of the coronavirus has resulted in the increased prices of Sodium Propionate across the North American region. The demand for full transparency about the ingredients, production processes, and supply chain from consumers has subsequently profited the margins in the US, which has also supported the increased demand for the product.
Asia
During the fourth quarter of 2021, the price trend of Sodium Propionate demonstrated positive market sentiments in the Asian market. In the Chinese domestic market, the prices of Sodium Propionate witnessed a significant rise on the back of the increased demand from downstream sectors and settled at USD 2750/MT FOB Guangzhou in the end week of December. In India, the market trend showcased mixed sentiments as the prices fluctuated and then declined later in the month of December. In the 4th quarter, Sodium Propionate prices were assessed at USD 2182.35 per MT in October and USD 2154.1 per MT CFR JNPT in December. The surged prices of upstream Propionic acid and high freight charges compelled the traders to sell the material above their margins.
Europe
The European market of Sodium Propionate mimicked the pricing trend of the US in this quarter as well. The soaring prices of the various commodity, skyrocketing freight costs, high raw material prices, and the emergence of the Omicron variant have exacerbated the market trend of Sodium Propionate in the European region. A prolonged supply bottleneck and spiraling freight charges have further supported the prices in Q4. In terms of demand, strong offtakes from the cosmetic and food and beverage industries were observed during this quarter.
For the Quarter Ending September 2021
North America
In North America, Sodium Propionate market witnessed an upward rally followed by the revival in the cosmetic industry and the increasing consumption as a food preservative from food and beverages sector. Moreover, constraint supply of feedstock Propionic acid, led to the increment in the values of Sodium Propionate during this quarter. Due to the severe climate calamity in the US, most of the manufacturers were compelled to shut their production units that directly affected the production rates as well as the supply chain in this timeframe. Hence, it directly contributed to the inflation in the prices of Sodium Propionate in this quarter.
Asia
In Q3 2021, constrained supplies of Sodium Propionate in the Asian markets during this period led to the steady increment in its prices. In India, Sodium Propionate prices witnessed a steep climb owing to the upsurge in the values of its feedstock Propionic acid. In addition, delayed imports due to the trade disruption backed by the congestion on several ports of China and the Ida hurricane that made landfall in the Gulf Coast of the USA in August end also brought up the prices of Sodium Propionate in India during this quarter. Moreover, exorbitant freight charges and unavailability of shipping containers further exerted stress upon the supply fundamentals. Thus, Ex- Depot Mumbai, prices of Sodium Propionate, were accessed at USD 2310.05/MT in September showcasing a significant hike since July.
Europe
In Europe, market dynamics of Sodium Propionate mirrored the market trend of other regions during the third quarter of 2021. An improvement in the offtakes from the downstream sectors was witnessed after the resurgence in the market activities in post pandemic period. Moreover, European market witnessed snug supply of feedstock Propionic Acid owing to the lower imports as an impact of Ida hurricane in the US Gulf Coast that consequently led to the inflation in the prices of Sodium Propionate in this quarter. Furthermore, constant increment in the freight costs also sent ripples to the values of Sodium Propionate across the European region.
For the quarter Ending June 2021
North America
The demand for Sodium Propionate remained consistent throughout the quarter across North America region. The demand from the domestic preservatives segment remained stable in USA during this quarter, while prices kept fluctuating in the meantime. However, prices of feedstock Propionic acid also increased week over week due to high demand and inadequate availability in USA. In addition, several major manufacturers of the country rose their product prices, expecting a rise in prices of feedstock Propionic Acid.
Asia
Prices of Propionic Acid fluctuated effectively during this quarter in Asian market, while most of the countries reported an overall decline in price of the product. Demand for Sodium Propionate remained stable to firm in China during this timeframe, where the prices remained volatile. Meanwhile in India, prices kept on declining in all three months of Q2, due to infirm demand from the domestic market. In June, unlike other chemicals, demand for Sodium Propionate never improved despite of decline in COVID cases in India. Therefore, after a continuous decline in price of Sodium Propionate, they were accessed at USD 1860/MT during the month of June in India.
Europe
Demand for Sodium Propionate remained dull in European region, due to infirm offtakes from the domestic market. However, abundant availability of Sodium Propionate across the region also impacted the overall price trajectory of the product during this timeframe. In addition, demand from the preservative sectors also remained in a narrow range due to availability of other cheaper alternatives. Therefore, despite of several price fluctuations, prices of Sodium Propionate slipped effectively during this timeframe.
For the Quarter Ending March 2021
North America
Demand for Sodium Propionate remained substantially firm during Q1 2021. Freakish winter storm Uri in Texas increased the demand for well preserved packaged food, as uncertainties were hovering around several businesses. The region reported increased demand for several food preservatives including Sodium Propionate during February. However, despite of its high demand, the price maintained stability under ample availability in the region. In addition, other than food preservative segment, demand from carbonated drinks also remained stable across other areas of North America.
Asia Pacific
The Asian market encountered fair demand for Sodium Propionate, from the food preservative segment. As the Indian market is still a growing market for preservatives and highly volatile in nature, that’s why the demand readily reduced during this quarter as compared to prior quarter. The demand was increased during peak of COVID 19 cases, as the manufacturers had to ensure longer shelf life of their products. The price of Sodium Propionate hovered around USD 1905/MT during February in the Indian market. In the Chinese markets, production remained high as the demand from international market was consistent, and the production activity remained strong to satisfy the demand.
Europe
The European market was struggling with second wave of COVID 19 during this quarter, that increased the demand for several food preservatives across the region. However, as Sodium Propionate has limited use in the region, the demand for this specific preservative remained modest and varied country over country. Thereby, the gap between demand and availability was narrow during this timeframe and didn’t much affect the prices of Sodium Propionate across the region.
For the Quarter Ending December 2020
Asia
In Asia Pacific region, demand for preservatives increased during final quarter of 2020, due to pickup in demand during the festive season in November. This significant rise in demand led to slight increment in the price of Sodium Propionate i.e., from 2053.5 USD per tonne in October to 2093.1 USD per tonne till December 2020. However, due to ample supply the prices didn’t rise by a big number. Although prices of feedstock tumbled in the December 2020 due to low demand, but it didn’t adhere a significant impact upon the prices of Sodium Propionate across APAC region.
North America
Demand for Sodium Propionate in the food preservatives sector remained firm during Q4 2020 in North America backed by its increased demand amidst holidays and festivals like Christmas, Halloween, thanksgiving etc. However, the supply remained tight initially during October, due to shortage of feedstocks supply due to disturbed functioning of several plants following the spate of hurricanes. Consequently, prices of Sodium Propionate during November 2020 settled at USD 2217 per tonne in Canada. In addition, marginal rise in feedstock Propionic Acid prices were observed in some north American countries like Mexico which later came down again in December.
Europe
Europe was hard hit by the new wave of Coronavirus that led to a major disruption in the market activities in Q4 2020, considerably affecting the imports as well as domestic manufacturing of several feedstock chemicals. In addition, hurricanes in the gulf of USA also exacerbated this import shortage of feedstock, causing a major impact upon its prices in some countries like Germany and Spain. However, as the supply gradually resumed by the end of November, its prices also witnessed stability.
