For the Quarter Ending March 2024
North America
In the first quarter of 2024, there has been a notable upsurge in Sodium Propionate prices across North America. This price hike is a direct result of strategic maneuvers by key industry players who have initiated substantial orders to meet the growing demand and bolster increased purchasing activities.
A significant driver behind this price escalation is the surge in raw material expenses, particularly for propionic acid, in major regions where it is produced and exported. North America, a substantial importer, has mirrored the pricing trends of these exporting regions to remain competitive amidst evolving market dynamics. Adding complexity to this scenario are geopolitical tensions and trade interruptions, which have further compounded market sentiments. Export challenges, such as the redirection of shipping routes via the Cape of Good Hope to avoid the Red Sea, have triggered a chain reaction of consequences. These include heightened shipping costs, order cancellations, and delays in container movement.
Furthermore, external environmental factors came into play in March, with the National Oceanic and Atmospheric Administration (NOAA) issuing warnings about potential congestion in the Mississippi River for the third consecutive year. This advisory, attributed to warm, dry spring conditions and reduced winter snowpack, has raised concerns regarding future disruptions in shipments. As a result, market participants in the US have escalated inquiries to exporting nations, further amplifying the upward pressure on prices.
Asia
The pricing dynamics of Sodium Propionate in the APAC region during Q1 2024 have experienced significant fluctuations influenced by a variety of factors. Notably, in China, Sodium Propionate prices surged by 1.82% over the quarter, reaching a latest quarter-ending price of USD 1255/MT FOB Shanghai.
Several factors have contributed to this recent price escalation. Increased demand, particularly from the downstream sector, has been a major driver, stimulating purchasing activity. Insufficient inventories were exacerbated by a temporary trade slowdown during the Lunar New Year festivities, restricting product availability. The Chinese Lunar New Year and Spring Festival celebrations also led to a slowdown in production activities, exacerbating supply constraints. Rising freight and transportation costs further compounded logistical challenges, creating obstacles in obtaining the product. Post-holiday, there was a surge in purchasing activities, driven by significant domestic and international procurement orders. This renewed confidence, coupled with the Chinese currency (CNY) depreciation against the USD, reinforced the upward price trend and strengthened market resilience.
However, the price trajectory did experience a dip at the beginning of Q1 due to Year-end destocking activities in the prior month, resulting in reduced demand and ample inventories, which exerted downward pressure on prices. Western and Northern markets also witnessed decreased orders post-holiday season, intensifying competition among producers. Additionally, Propionic acid prices, a crucial raw material, declined due to weak demand, further impacting Sodium Propionate prices.
Europe
In the first quarter of 2024, the European Sodium Propionate market witnessed a notable price upswing, propelled primarily by heightened demand from downstream sectors. This surge prompted key industry players to strategically engage in substantial bulk procurement, aimed at meeting the escalating requirements and accommodating the increased purchasing activities prevalent in the market.
One of the driving forces behind this price escalation was the upward trend in raw material prices, particularly propionic acid, in major producing and exporting regions. This increase in input costs introduced a layer of complexity to market dynamics, providing a favorable cost environment that reverberated throughout the supply chain. In response, the European region, a significant importer of Sodium Propionate, followed suit with exporting regions to uphold competitiveness.
Importantly, challenges arose in the export landscape as shipping lines redirected vessels via the Cape of Good Hope to circumvent the Red Sea, where geopolitical tensions were disrupting trade routes. These alterations in shipping routes resulted in heightened shipping costs, order cancellations, container movement delays, and an overall sense of uncertainty regarding future developments. The notable surge in container freight rates also exerted a significant influence on pricing dynamics, particularly impacting industries reliant on maritime transport for their supply chains. This increase in shipping costs further compounded the challenges faced by market participants. Additionally, the Euro's devaluation against the US Dollar added extra pressure to market conditions.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the North American market for Sodium Propionate witnessed significant price fluctuations. Commencing in October, prices surged due to heightened demand from the domestic market's downstream sector. This uptick was further influenced by its status as a major importer, with pricing trends shaped by escalating costs in exporting nations.
Notably, recent trade tariff developments between China and the US, coupled with a notable reduction in maritime congestion, played pivotal roles in shaping market dynamics by curbing expenses. Moreover, heightened freight costs added resilience to the sodium propionate market, rendering shipment and exporting more expensive. Market players strategically placed bulk orders to replenish inventories, contributing to the prevailing pricing trend. Additionally, the Panama Canal port congestion scenario further exacerbated the situation, as transit restrictions began to impact containerships.
Furthermore, in December, the threat broadened to all ships passing through the Red Sea, even those with no links to Israel, due to missile attacks, further tightening the market situation in the North American region. Later in December, sodium bicarbonate prices experienced a decline. The primary catalyst for this reduction was the year-end destocking activity undertaken to clear existing stock at lower prices, preparing for the replenishment of inventories with fresh stocks in the ensuing months.
Asia
In the APAC region during the fourth quarter of 2023, the Sodium Propionate market experienced various influences. Despite market challenges, the current quarter's price for Sodium Propionate FOB Shanghai in China is USD 1190/MT. Notably, the price of Sodium Propionate in China saw a significant average quarterly increase of 3.01% in Q4 2023. The rise in demand for Sodium Propionate, both domestically and internationally, was a primary factor, driven by robust economic growth and increased consumer spending. This heightened demand created a constrained market with limited supply, leading to elevated prices. Additionally, the escalating costs of ocean freight contributed to an overall increase in export prices, further impacting market dynamics. Labor shortages in various sectors, such as agriculture and manufacturing, compelled companies to offer higher wages to attract and retain workers, thereby increasing production costs. Market players strategically replenished their inventories through bulk orders, resulting in tight market sentiments. The escalating production costs and increased shipping charges further contributed to the price uptrend. Towards the beginning of December, prices experienced a marginal decrease due to a surplus of Sodium Propionate, prompting producers to take drastic measures to clear inventory amid challenging market conditions. Adding complexity, the simultaneous drop in raw material prices, specifically Propionic acid, during the same timeframe, introduced another layer of intricacy to the pricing dynamics for Sodium Propionate.
Europe
During the fourth quarter of 2023, the European market for Sodium Propionate witnessed significant price variations. Commencing in October, prices surged due to heightened demand from the domestic market's downstream sector. This uptick was further influenced by Europe's status as a major importer, with pricing trends shaped by escalating costs in exporting nations. Concurrently, market players strategically placed bulk orders to replenish inventories, contributing to the prevailing pricing trend. Moreover, heightened freight costs added resilience to the sodium propionate market, rendering shipment and exporting more expensive. Notably, recent trade tariff developments between China and Europe, coupled with a notable reduction in maritime congestion, played pivotal roles in shaping market dynamics by curbing expenses. Later, in December, sodium bicarbonate prices experienced a decline. The primary catalyst for this reduction was the year-end destocking activity undertaken to clear existing stock at lower prices, preparing for the replenishment of inventories with fresh stocks in the ensuing months. Furthermore, during the festive season, prices decreased due to a stable demand outlook from the downstream sector. These multifaceted factors underscore the complex interplay of market forces, both domestically and globally, in influencing the sodium propionate market during the specified period.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, there was a notable decline in the pricing of Sodium propionate within the United States market. This drop in prices primarily stems from a decrease in the overall demand for Sodium propionate during that period, leading to a consequent reduction in market prices. Several factors have played a role in this price decline, including a diminished request from the food and beverage industry, a slowdown in the oil and gas sector's demand, and an increase in the supply of Sodium propionate. Moreover, as the primary importer of Sodium propionate, the United States was affected by decreasing prices in exporting nations. Another element influencing the price decrease is the reduced costs of Propionic acid, which is a critical raw material in the production of Sodium propionate. Propionic acid prices were themselves low due to various factors, such as fluctuations in global supply and demand. As a result, the lowered Propionic acid expenses had a direct impact on the costs associated with Sodium propionate production, ultimately causing an overall decrease in prices. Additionally, recent advancements in trade, coupled with a substantial decrease in sea freight expenses and a reduction in port congestion, have led to cost savings that have influenced market dynamics. The presence of domestic supply and reduced demand, both domestically and internationally, exerted downward pressure on Sodium propionate prices. The global economic downturn has prompted market participants to exercise caution when placing bulk orders, and speculators have been actively engaging in trading Sodium propionate futures in anticipation of further price drops, thereby contributing to the overall price reduction.
Asia
During the third quarter of 2023, the Asia-Pacific Sodium propionate market experienced a general downturn. In July, prices remained steady thanks to consistent demand from downstream industries. Despite mixed demand, purchasers maintained modest supplies of standard-sized materials with swift delivery options. Both local and global suppliers didn't receive any fresh inquiries. The ability of Indian suppliers to export was significantly hampered by uncertain economic conditions in China and the USA, which substantially impacted worldwide trade. Consequently, the market's outlook became less sanguine. Adding to the complexity, suppliers had substantial stockpiles of Sodium propionate in storage, prompting them to adjust price quotations to accelerate product turnover. Furthermore, some market participants reduced their inventories to enhance cash flow, further contributing to the decline in Sodium propionate prices. This price drop can also be ascribed to the reduced costs of Propionic acid, an essential raw material in the production of Sodium propionate. The prices of Propionic acid, in turn, were on the lower side due to various factors, including fluctuations in global supply and demand. Consequently, the decreased Propionic acid expenses directly impacted the overall costs of Sodium propionate production, resulting in an overall price reduction. In the third quarter of 2023, the Purchasing Managers' Index (PMI) for the Indian manufacturing sector registered at 57.5, signifying ongoing expansion but at a slower pace than the preceding quarter. This deceleration was primarily due to a drop in new orders and output. By the close of Q3, Sodium propionate prices were documented at USD 1090 per metric ton, demonstrating a quarterly average decrease of 4.45%.
Europe
During the third quarter of 2023, there were significant price variations in the European market for Sodium propionate. These fluctuations were primarily instigated by a drop in the overall appetite for Sodium propionate during that timeframe, resulting in a decrease in market rates. This decline can be ascribed to multiple factors, such as diminished demand from the food and beverage sector, a slowdown in the oil and gas industry's demand, and an upsurge in the supply of Sodium propionate. Additionally, as Europe is a major Sodium propionate importer, its pricing was influenced by the diminishing costs in exporting nations. In addition to these factors, recent developments in trade tariffs between China and Europe and a substantial reduction in maritime congestion have played a role in shaping the market dynamics by reducing expenses. Another contributing element to the price reduction is the reduced expenses of Propionic acid, a critical raw material in Sodium propionate manufacturing. Propionic acid costs were on the lower end for various reasons, including fluctuations in global supply and demand. Consequently, the reduced Propionic acid expenses directly impacted the production costs of Sodium propionate, leading to an overall price decrease. The presence of domestic supply and decreased demand in both local and global markets also exerted downward pressure on Sodium propionate prices. The global economic deceleration dissuaded market participants from placing substantial orders, and speculators actively participated in selling Sodium propionate futures in anticipation of future price declines, which further added to the overall price reduction.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the price of sodium propionate in the US market dropped significantly due to sporadic fluctuations between supply and demand during the month. The downturn in market conditions has been attributed to low and stable prices for sodium propionate, with most downstream markets seeing average demand recently. Upstream propionate prices also trended lower this month. Energy costs, a key input cost factor for propionic acid production, have fallen in recent months due to the slowdown in the global economy, and falling oil prices have also spurred the downward trend in sodium propionate. Sodium propionate is also available in powder form to help deplete existing stocks due to seasonal changes, which has also contributed to the market downturn. Falling prices have also made retailers reluctant to place bulk orders. Market leaders are expected to cut prices further in the coming months. Commodity prices also fell due to oversupply and increased production.
Asia-Pacific
The market price of Sodium Propionate collectively declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 8.67 A rise in their inventories at the beginning of the second quarter (Q2) kept the market position feeble. Decreased offtakes from the local and international markets further maintained the depreciating trend. Additionally, the current market trend in China for this month was further supported by the supply-demand equilibrium. the domestic market saw a noticeably reduced-price trend for Sodium propionate in the Chinese market because of lower offtakes and lower demand forecasts from both the domestic and international markets. The downward trajectory of the market is further influenced by falling raw material propionic acid prices. Also, downstream panel factories had weak demand and the pressure on the propionic acid shipment was high, and inventory continued to be high, resulting in a continuous decline in the propionic acid market which supported the feeble sodium propionate market trend.
Europe
In the second quarter of 2023, the demand for sodium propionate decreased, leading to lower market prices. Throughout the second quarter, the value of the sodium propionate market trended downward. Prices fell due to falling raw material prices for propionic acid and sodium bicarbonate. Lately, downstream market demand has been sluggish, and prices of sodium bicarbonate and propionic acid have been weak and strong. In addition, the sodium propionate market was sluggish as suppliers had sufficient supply and inventory of raw materials. The upstream market also remained sluggish. Several factors contributed to the market weakness, including government regulations capping energy prices and falling wholesale prices as the global economy recovered from the turmoil triggered by Russia's invasion of Ukraine. There is, as a result, many energy supply companies have cut costs. Also, since sodium propionate is powdery and subject to seasonal fluctuations, traders decide to sell their stocks at lower prices to avoid losses.
For the Quarter Ending March 2023
North America
Sodium Propionate's price trend showed steady growth in the first quarter of 2023. Due to merchant supply to meet demand and continued purchases from the pharmaceutical end-user sector, prices increased at the beginning of Q1 2023 and remained up until the end of February. The market position also benefited from an increase in trade flow and simpler logistic costs compared to the previous quarter. On the other hand, prices stabilize from the start of February to the end of March as a result of adequate stocks, offtakes from the low-end consumer sector, and a decline in freight costs. Also, the price of the primary raw material, propionic acid, as well as upstream ethylene prices, increased steadily, supporting the upward trend.
Asia
In the first quarter of 2023, Sodium Propionate prices in the APAC area showed signs of improvement. As domestic and foreign markets demanded that their stocks be refilled with fresh stock at the beginning of Q1 2023, prices increased significantly. The market situation remained stable thanks to increasing production activity as well. Following the Lunar New Year holiday, the Chinese pharmaceutical markets technically made a strong comeback with consistent orders from the domestic and international markets. Factory and port operations started up as soon as the market was restored. The feedstock propionic acid price and upstream Ethylene prices rose steadily, further affecting the market situation. At the termination of Q1 2023, the settlement price of Sodium Propionate accessed at USD 1650/MT FOB Shanghai with an average quarterly inclination of 2.78%.
Europe
In the first quarter of 2023, the price trajectory for Sodium Propionate continued to increase steadily. Prices grew at the start of Q1 2023 and persisted through the end of February as a result of merchant supply increasing to match demand and ongoing purchases from the pharmaceutical end-user sector. Additionally, a rise in trade volume and lower logistical expenses when compared to the prior quarter helped the market position. On the other hand, due to sufficient inventories, offtakes from the low-end consumer sector, and a drop in freight costs, prices stabilized from the beginning of February to the end of March. A further factor supporting the upward trend was the rising cost of the main raw material, propionic acid, as well as upstream ethylene prices.
For the Quarter Ending December 2022
North America
Due to the constant market dynamics, prices for Sodium Propionate decreased in the fourth quarter of 2022. The first week of October saw a restriction on imports of Sodium Propionate from China due to the country's Golden Week. Domestic providers were able to meet the total demand thanks to their large stocks, and offtakes in the end-user industries were stable throughout the quarter. Due to weather issues, Russia's turmoil in Ukraine, and China's Covid lockdowns, supply chains were dangerous for the majority of the quarter. However, as the economy started to expand and the ports experienced a large decline in ship backlogs following a protracted port backlog, things started to improve gradually in the second part of the year.
APAC
The price structure for Sodium Propionate declined in China's domestic market during the fourth quarter of 2022. Due to factories being closed for the Golden Week, China's industry that produces citric acid experienced a gradual reduction in orders during the first week of October. It was difficult for the market to catch up to the small gain seen in various downstream industries during the first half of Q4 because Chinese traders had to deal with a range of contradicting signals after a one-week break. Large inventories allowed domestic producers and suppliers to meet demand during the whole quarter. Toward the end of the quarter, Sodium Propionate prices were estimated to be around USD 1520/MT for FOB Shanghai in December.
Europe
Prices for Sodium Propionate declined in the fourth quarter of 2022 in the European market. Demand in Germany remained weaker throughout the quarter, which made it difficult for the pharmaceutical and nutraceutical industries to plan ahead and stay afloat. This was to rising energy and raw material prices. Despite growing energy prices and supply-chain concerns, Germany's industrial production barely increased in October. However, the conditions in Russia and Ukraine and the COVID-19 instances have negatively impacted the market's state in general.
For the Quarter Ending September 2022
North America
Prices for sodium propionate varied in the third quarter of 2022 due to its increased application in the food processing sector due to the rising cost of the chemical. The significant increase in safety concerns regarding the security of packaged goods is the main driver of the high demand for sodium propionate. The demand for sodium propionate has been greatly raised by the growing preference of urban customers for easily accessible food items and by the increased urbanization of the world. The increased demand for canned goods has also increased the market for sodium propionate. Sodium propionate is also an antibacterial agent, which increases its application in the food processing industry and raises the price of the chemical.
APAC
The prices for sodium propionate varied in China's domestic market during the third quarter of 2022. Over the first half of the quarter, there was a steady decline in demand from the food and beverage sectors. It was possible to identify supply and port bottlenecks using COVID cases in China's core regions, greatly accelerating the flow of goods to foreign markets. The conditions made it difficult for commodities to move across the nation and to key ports for international trade. Propionic acid and sodium carbonate market emotions have altered over the course of the quarter, and the impact on the sodium propionate market has become a hot topic. Toward the end of the quarter, sodium propionate prices were estimated to be around USD 1920/MT for FOB Shanghai in September.
Europe
Prices for sodium propionate increased in the third quarter of 2022 on the European market. The cost of upstream fuel for producing propionic acid also has a major impact on sodium propionate prices around the world. The price of sodium propionate has increased because of rising crude oil prices as well as worries about the conflict in Russia and Ukraine. The market for sodium propionate is also driven by rising logistical expenses and port congestion. In response to the current scenario and the fluctuating cost of raw materials, some manufacturers and suppliers of Sodium Propionate in Europe increased their prices. Pressure from expanding consumption of processed and packaged foods has led to an increase in sodium propionate's price because of growing demand.
For the Quarter Ending June 2022
North America
sodium propionate prices rallied upwards in the second quarter of 2022 as the global price of Sodium Propionate has been driven up by the industry's expanding use in food processing. The strong demand for Sodium Propionate is primarily supported by the rising safety concerns around the safety of packaged foods. In addition, urban consumers' growing preference for readily available food items and increased urbanization have significantly boosted the demand for sodium propionate. The market for sodium propionate has also been growing as a result of the rising demand for canned goods. Additionally, since sodium propionate also functions as an antibacterial agent, its use in the food processing industry has increased, driving up the cost of the chemical.
APAC
In 2022, the pricing pattern for Sodium Propionate in China's domestic market showed conflicting feelings. There was a consistent rise in demand from the food and beverage sectors during the whole quarter. Supply and port bottlenecks were caused by a surge of COVID cases in China's central provinces, which considerably slowed product delivery to foreign markets. Due to China's illogical zero-tolerance policies and restrictions, which have continued to impede production and supply and cause issues with transporting different additives and raw materials, logistics were put under pressure. The conditions made it difficult for products to move across the nation and to important ports for international trade. Propionic Acid and Sodium Carbonate's market emotions have fluctuated during the quarter, and their impact on the Sodium Propionate market has become a hot topic.
Europe
During Q4 2022, sodium propionate prices rose in the European market. Additionally, upstream propionic acid fuel costs are a significant factor in driving the price of sodium propionate globally. Increases in crude oil costs and concerns related to the war in Russia and Ukraine have contributed to an increase in the price of sodium propionate. Increased logistic costs and port congestion also drive the sodium propionate market. Several producers and suppliers of Sodium Propionate in Europe raised prices in response to the current situation and the fluctuating raw material prices. Growing demand for sodium propionate has resulted in an increase in its price as a result of pressure from rising processed and packaged food consumption. The surge in the price of Sodium Propionate across the board had been fueled by rising propionic acid and crude oil costs.
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
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.
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.
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.
