For the Quarter Ending June 2023
North America
The North American market witnessed a depreciation of prices of Sodium Tetraborate by 10% and 6% in the first two months of the quarter, however, the prices surged by 10% by the end of the Q2. The situation of the market was observed to be bearish as the demand from downstream sectors like agriculture, laundry, and construction has been low due to the economic slowdown in the US. The ample availability of the product amidst subdued demand dropped the prices of Sodium Tetraborate in the region. The purchasing activities from the domestic market looked grim as the world economy displayed uncertainties that weakened demand, resulting in manufacturers facing stockpiling of inventories. However, the market conditions for the product improved by the end of the quarter due to raised demand from the downstream cosmetic sector and steady demand from the construction industry in the US. Additionally, as indicated by the Federal Reserve of Economic Data, the Consumer Price Index (CPI) of the USA has shown a marginal rise from 302.91 in April 2023 to 303.29 in May 2023 and is expected to increase further.
APAC
During the second quarter of 2023, the Sodium Tetraborate market in the Asia-Pacific region showcased mixed sentiments. The price of the product rose by 2% in April but fell by 7% and 3% in May and June respectively. In April, the upstream Boric Acid prices contributed to the soaring prices, as the market witnessed tight supply for the product. The recovery of the Chinese economy has led to a rise in the demand for Sodium Tetraborate from the downstream construction industries. However, the decline in the last two months was on account of lackluster demand from end-user industries such as cosmetics, agriculture, and detergent industries. Also, the market witnessed bearish demand and limited trading activities amidst a pessimistic world economy. The weaker inquiries from the domestic market have led to stockpiling of the product, further, depreciating the costs. A similar market outlook was observed in India where the prices declined throughout the quarter, with a drop of 1% in June. As per data from the National Bureau of Labor and Statistics, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month along with a decrease in industrial growth rate from 5.6 in April 2023 to 3.5 in May 2023.
Europe
The Sodium Tetraborate market showed mixed market sentiments in Europe during Q2 as the prices fell for continuous two months, but rose by the end of the quarter. The price of Sodium Tetraborate in Belgium declined by 5% and 4% in April and May respectively and inclined by 5% in June. The depreciating cost of the product was observed due to unhealthy downstream demand in the domestic market due to raised interest rates and inflationary pressures. Further, the ample availability of the material in the European region coupled with subdued demand and competitive import product prices has caused domestic sellers to offer products at lower prices to destock the material. Moreover, the upstream Boric Acid prices have influenced the price of Sodium Tetraborate. In June, a surge in price is observed due to increased demand from downstream cosmetics and personal care sectors in the European region. As the supply was low, the traders raised the prices. The economy of the region is directly impacting consumer purchasing activities. Inflation in Germany slowed down from 6.1% in May to 5.6% in June but as per data from the German Federal Statistical Office, the Consumers Price Index has declined by 0.1% in May 2023. Further, as indicated by Eurostat, the Producers’ Price Index of the region declined to 138.3 in May from 143.4 in March and is expected to decline further. The average decline was 3.6%.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the market for Sodium Tetraborate in North America showcased mixed market momentum. The prices were significantly falling in the first half of the quarter, which later gained stability as the quarter approached its end. During March, an improvement in the industrial production and sales of the construction and detergent industries was witnessed, which increased market demand for Sodium Tetraborate and resulted in a stable rise in price. Additionally, the level of inventories 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 Tetraborate. As a result, the evaluated price for Sodium Tetraborate in the USA in March was USD 592/MT FOB Illinois.
APAC
Unlike North American market sentiments, the Asia-Pacific region witnessed a consistent fall in Sodium Tetraborate prices during quarter 1 of 2023. The price trend of Sodium Tetraborate in the Asian market has been softening due to the bad condition of the downstream construction sector and the weak procurement attitude of end-users for detergent boosters. Strong supply was developed because of increased refinery run rates and falling upstream boric acid costs in the Asian market. Hence, the instability in the demand and supply ratio caused the Sodium Tetraborate prices to fall drastically during the quarter. Hence, the assessed cost of Sodium Tetraborate in China was USD 831/MT FOB Dalian in March, which was 33.3% lesser than its value in December.
Europe
The market for sodium tetraborate in Europe experienced uneven market momentum during the first quarter of 2023. During the first half of the quarter, prices inclined in January, only to decline sharply in February; however, as the quarter's end drew near, they began to stabilize. The building and detergent industries' industrial production and sales improved in March, which increased market demand for sodium tetraborate and led to a steady price increase. In addition, inventories weren't as high as they needed to be to fulfill demand, and the supply rate was slower than it should have been. These factors combined create an unstable demand-supply ratio and a spike in the price of sodium tetraborate. So, in March, the assessed cost of sodium tetraborate in Germany was USD 865/MT CFR Hamburg.
During the final quarter of 2022 in the American market, the price of sodium tetraborate declined steadily throughout the months. The weak demand from the pharmaceutical sector contributed to the price drop in the US. The cost of Sodium Tetraborate decreased throughout Q4 2022 in the American market due to the poor demand from the construction sector. Throughout Q4 2022, the steady upstream borax supply from Turkey contributed to the decline of Sodium Tetraborate prices in the US. At the end of the final quarter of 2022, the price of sodium tetraborate on the American market was around USD 842/MT.
Sodium Tetraborate's price in the Chinese market fell significantly and persistently throughout the final quarter of 2022. The price of sodium tetraborate was projected to be around USD 1245/MT at the end of Q4 2022. Despite rules pertaining to Covid-19 during the final quarter of 2022 in China disrupting the supply of the commodity, the poor demand from the downstream construction sector drove down the prices of Sodium Tetraborate in the Chinese market. The price of sodium tetraborate further decreased in the Chinese market during the fourth quarter of 2022 as a result of the drop in the cost of upstream borax at the end of Q4.
Throughout the last quarter of 2022, the price of Sodium Tetraborate declined consistently in the European market. At the end of Q4 2022, the cost of sodium tetraborate was estimated to be roughly USD 1021/MT in the German market. Sodium tetraborate prices fell in the European market due to the relative easing of energy costs in various European countries and the poor demand from the downstream construction sector throughout Q4 2022. Due to the decrease in the price of upstream borax at the end of Q4, the price of sodium tetraborate in the European markets fell even further during the fourth quarter of 2022.
