For the Quarter Ending March 2023
Sodium Sulphate showcased optimistic market momentum in the North American market during the first quarter of 2023. The industrial production and sales of detergent and paper industries improved during the quarter, which boosted demand for Sodium Sulphate in the market, and a rapid spike in pricing trend was seen. Additionally, the level of inventories was lesser than what was required to cater to the available demand along with a lagging supply rate, which caused the instability in the demand-supply ratio, hence surging the value of Sodium Sulphate. Consequently, the assessed price of Sodium Sulphate in the USA was USD 180/MT FOB USGC during March, which was 23.3% higher than in December.
During the first quarter of 2023, the market for Sodium Sulphate in the Asia-Pacific region had positive market momentum. The quarter saw an improvement in the industrial production and sales of the paper and detergent industries, which increased market demand for Sodium Sulphate and resulted in a sharp rise in price. Additionally, the level of stockpiles was lower than what was necessary to meet the demand, and the supply rate lagged, which led to an unstable demand-supply ratio and an increase in the price of Sodium Sulphate. As a result, the evaluated price for Sodium Sulphate in Japan in March was USD 118/MT FOB Tokyo, which was 5.4% more expensive than in December.
In the first quarter of 2023, the European Sodium Sulphate market had strong market momentum. The quarter saw improvements in the paper and detergent industries' industrial production and sales, which raised market demand for Sodium Sulphate and caused a substantial increase in price. Furthermore, the stocks were not at the appropriate level to fulfill demand, and the supply rate was slow, which caused an unstable demand-supply ratio and an increase in the price of Sodium Sulphate. Because of this, the assessed price for Sodium Sulphate in Germany in March was USD 265/MT FD Hamburg, 10.4% more expensive than in December.
For the Quarter Ending December 2022
During Q4 2022, the prices of Sodium Sulphate rose in the North American market, with prices ranging at USD 125/ton FOB USGC in November 2022 as per ChemAnalyst Research Team Data in the USA. In mid-November, strengthened global downstream demand and a stronger dollar pushed goods exports to a seven-month high, suggesting trade could have more substantial economic growth. The feedstock Crude Oil prices decreased, affecting Sulphur's market sentiments and cost pressure. The delineation of the Sodium Sulphate market was observed to be elevated with the rise in prices, and orders of the product were high enough to keep a balance with the downstream consumption of the product.
The prices of Sodium Sulphate increased in the Asian market during Q4 of 2022, with costs ranging from USD 96/ton FOB Shandong in October in China. Enterprise inventory levels continued to remain low, the supply of Sodium Sulphate was tight, and enterprises mainly completed orders from existing customers. According to market observers, despite high inflation, the downstream demand has spiraled up with strengthening consumer spending. In spite of the decrease in freight costs, the region supplied more Sodium Sulphate to importing countries. The geopolitical tensions and pandemic in China have induced supply chain disruptions and caused a shortage of Sodium Sulphate in the domestic as well as international market.
The demand from the downstream fertilizers market plummeted due to weakness in utilizing the product in the region, and procuring Sodium Sulphate in the European market needed to be more vital to raise Sodium Sulphate inventories with the traders and suppliers. The buying trend from the end-users has remained weakened in the market, decreasing the prices of Sodium Sulphate. The more inventory and sufficient supply of Sodium Sulphate push the price down further. Low-cost pressure from the weakening crude oil prices drives the Sodium Sulphate price downward in the region. Detergent demand weakened from the regional market affecting the buying sentiments. The market value of Sodium Sulphate was hovering at USD 164/ton FOB Hamburg in December within Germany, as per ChemAnalyst Research Team data.
During Q3 2022, the prices of Sodium Sulphate increased during the middle of the quarter and then drastically fell by the end of the quarter. The US manufacturing activities tumbled in July as more factories dialed back production in the face of shrinking orders and rising inventories. The labor shortages and disrupted global trade dynamics have fuelled the market growth during August. The orders from the downstream domestic and international markets decreased somewhat because of the slowdown in demand, which caused a negative market attitude and delivery delays. The prices ranged at USD 100/ton Sodium Sulphate FOB USGC during the end of the quarter.
The prices of Sodium Sulphate fluctuated in the Asian market during the third quarter of 2022, as per pricing data. The increased queries from the downstream detergents pushed the domestic manufacturers to raise quotations for Sodium Sulphate in the region. The prices of upstream Sulphuric Acid and Sodium Chloride fluctuated, putting cost pressure on the products' values. The input materials' market values impacted the variable production costs, exerting significant upward pressure on price realizations in China. Labor shortages and the production cost of raw materials affected the market sentiments. In July, the price hovered at USD 110/ton of Sodium Sulphate FOB Shandong.
The prices of Sodium Sulphate in Europe followed a similar fluctuating trend as that of the Asian market during the third quarter of 2022. The increased spot offers due to input price inflation for Sodium Sulphate weakened the buyers' sentiments at the beginning of the quarter. Europe's largest economy was buffeted by the sharp increase in energy prices, affecting the market sentiments of Sodium Sulphate among the major manufacturing firms. The substantial increase in input cost and output charges has provoked the market players to improve their quotations. As a ripple effect, the prices of Sodium Sulphate settled at USD 160/ton FD Hamburg by the end of the quarter.